Mobile wallets surge in popularity as UK payment habits evolve

Mobile wallets are becoming increasingly popular in the UK, with nearly two-thirds of the population now registered for at least one service, according to the latest industry data. Despite this growth, card payments still dominate the market, accounting for 64% of all transactions in 2025.

## Payment trends in the UK

Total payment volumes in the UK reached 49.7 billion in 2025, marking a 2% year-on-year increase. Card payments led the way, with debit cards alone making up more than 50% of all transactions. This dominance is driven by widespread acceptance, extensive use of contactless technology, and the rising adoption of mobile wallets.

Contactless payments, whether made via physical cards or mobile devices, saw a 2% increase to 19.2 billion transactions, representing 39% of all payments. This is a significant shift from a decade ago, when contactless payments accounted for just 3% of transactions.

| Payment Method | 2025 Volume (Billions) | 2025 Share (%) | 2024 Share (%) | |----------------|------------------------|----------------|----------------| | Card Payments | 31.8 | 64 | 62 | | Contactless | 19.2 | 39 | 37 | | Cash | 3.9 | 8 | 9 | | Faster Payments| 6.2 | - | - |

## Mobile wallet adoption and cash decline

Mobile wallet adoption has surged, with 65% of UK adults registered for at least one service in 2025, up from 57% in 2024. Younger adults are more likely to use mobile wallets, with 89% of 25-34-year-olds registered compared to just 29% of those over 65. Users who adopt mobile wallets tend to become frequent users, often replacing physical card contactless payments with mobile contactless.

Meanwhile, cash usage continues to decline, with payments falling to 3.9 billion in 2025, down from 4.3 billion the previous year. Cash now represents just 8% of all payments, a stark contrast to 45% in 2015. A third of Brits now use cash once a month or less frequently.

## Remote banking and account-to-account payments

Remote banking remains the default way for people to manage their finances, with 91% of UK adults using at least one form of online, mobile, or telephone banking in 2025, up from 88% in 2024. Account-to-account payments are also on the rise, with Faster Payments and other remote banking payments reaching 6.2 billion in 2025, making them the second most used payment method in the UK, behind debit cards. Volumes rose by 10% year-on-year, driven particularly by increased business usage.

Adrian Buckle, head of research at UK Finance, notes that the trends of the past decade are becoming increasingly established. He says, "Cash usage is declining, albeit more gradually, and growth across many payment methods is stabilising as the market matures."

Buckle adds that the industry is entering a new phase of innovation, with new payment technologies poised to reshape how people and businesses move money. He emphasises the importance of continued collaboration across government, regulators, and industry to unlock this potential.