UK Mobile Payments Market

UK Mobile Payments Market Overview:

The UK mobile payments market size reached USD 2.65 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 14.4 Billion by 2033, exhibiting a growth rate (CAGR) of 20.67% during 2025-2033. The growing usage of mobile banking apps, rising adoption of contactless payments because of the convenience and efficiency, and increasing focus on creating secure, user-friendly platforms that cater to the evolving needs of individuals and businesses are some of the factors impelling the market growth.

UK Mobile Payments Market Trends:

Growing Adoption of Mobile Banking Apps

With continuous advancements in digital banking, mobile banking apps offer users a wide range of features that enhance the convenience and efficiency of managing finances. The integration of real-time transaction tracking, budgeting tools, and streamlined payment options are making mobile banking apps essential for day-to-day financial activities. Individuals are becoming more accustomed to handling various transactions through their phones, which is increasing the reliance on mobile payments. The ability to effortlessly transfer funds, make payments, and manage finances from a single app reduces the need for physical interactions, further encouraging the use of digital payment solutions. The growing accessibility and ease of use of mobile banking apps are key factors encouraging the adoption of mobile payments across the UK. In 2024, Stripe has introduced new payment tools in the UK, such as the "Pay by Bank" feature powered by open banking, allowing for affordable, real-time payments straight from bank accounts. The objective of the launch is to aid in the expansion of UK businesses by offering quicker access to funding and more adaptable payment options.

Increasing User Preference for Contactless Payments

Individuals in the UK are adopting contactless payments because of the convenience and efficiency they offer. Mobile payment options are now a key component of daily transactions, providing a fast and smooth alternative to conventional payment methods. The move towards contactless choices is supported by the rapidly growing infrastructure, with more retailers and service providers adopting mobile payment technologies. This widespread acceptance allows individuals to pay effortlessly across various locations, enhancing their overall shopping experience. Technology is becoming more accessible and user-friendly, which is driving the demand for mobile payments. In 2023, Square introduced its Tap-to-Pay capability on the iPhone in the UK, enabling merchants to receive contactless payments without the need for extra equipment. The function makes it easier for users to make in-person purchases by allowing them to tap their cards or devices on the seller's iPhone.

Rise of Financial Technology (Fintech) Innovations

With a robust financial technology (fintech) ecosystem, both emerging startups and established institutions are focused on creating secure, user-friendly platforms that cater to the evolving needs of individuals and businesses. These platforms offer an array of services, ranging from digital wallets to seamless money transfers, making transactions faster and more convenient. As competition in the fintech industry intensifies, innovation is speeding up to keep mobile payments accessible, efficient, and safe. Investments in infrastructure and technology are not only improving the capabilities of these platforms but also broadening their reach in different sectors. This ongoing development is improving user trust and acceptance, encouraging more people to adopt digital financial tools for their daily transactions. In 2024, Revolut, a fintech company based in the UK, introduced its mobile wallets feature to simplify international money transfers. The function enables users to transfer money by simply using the recipient's phone number or email, removing the necessity for intricate bank information and guaranteeing faster, more convenient transactions.

UK Mobile Payments Market News:

• June 2024: DNA Payments introduced Alipay+ acceptance to more than 50,000 UK merchants through their point of sale (POS) terminals. This program enables businesses to receive payments from 14 e-wallets, making transactions easier for foreign tourists, especially those from Asia.
• November 2023: Apple Pay had integrated with the UK open banking system, allowing users to link their debit and credit cards within the Wallet app. This feature enabled users to view account balances, transaction history, and manage their spending directly from the wallet, enhancing financial transparency.

UK Mobile Payments Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on mode of transaction and application.

Mode of Transaction Insights:

• WAP (Wireless Application Protocol)
• NFC (Near Field Communications)
• SMS (Short Message Service)
• USSD (Unstructured Supplementary Service Data)
• Others
   

The report has provided a detailed breakup and analysis of the market based on the mode of transaction. This includes WAP (wireless application protocol), NFC (near field communications), SMS (short message service), USSD (unstructured supplementary service data), and others.

Application Insights:

• Entertainment
• Energy and Utilities
• Healthcare
• Retail
• Hospitality and Transportation
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes entertainment, energy and utilities, healthcare, retail, hospitality and transportation, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Mobile Payments Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK mobile payments market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK mobile payments market?
• What is the breakup of the UK mobile payments market on the basis of mode of transaction?
• What is the breakup of the UK mobile payments market on the basis of application?
• What are the various stages in the value chain of the UK mobile payments market? 
• What are the key driving factors and challenges in the UK mobile payments?
• What is the structure of the UK mobile payments market and who are the key players?
• What is the degree of competition in the UK mobile payments market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK mobile payments market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK mobile payments market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK mobile payments industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.