57 per cent of UK adults were using mobile wallets in 2024, according to the latest payments figures from UK Finance.

The data also shows that the total number of people using mobile wallets increased by 15 per cent last year compared to 2023.

A report published by the financial services trade association, which covers payments trends in 2024, found that users who register for a mobile wallet service become frequent users quickly.

UK Finance said that where contactless card payments replaced what were once low-value cash payments, mobile payments appear to be replacing contactless transactions initiated using a physical card.

Of those who used mobile payments, half used them monthly, while 44 per cent use them weekly or more often.

Young people are still leading the way on adoption of mobile payments, with 88 per cent of 16 to 24 year olds using this method.

However, registration of mobile wallets for those aged 65 and over are also on the rise, increasing from 14 per cent in 2023 to 25 per cent last year.

The research also reveals that debit, credit and charge card payments – both physical and mobile – accounted for 64 per cent of all UK transactions in 2024, while cash payments accounted for less than 10 per cent of all payments for the first time.

The popularity of Buy Now, Pay Later (BNPL) saw a marked increase over the 12 month period, with the number of people using this payment method rising from 14 per cent of the population in 2023 to 25 per cent of UK adults last year.

“2024 was a year of firsts, all pointing to the growing shift towards digital payments – more than half of UK adults used mobile wallets, mobile banking overtook desktop as the main way people access their accounts, and cash fell below 10 per cent of all payments,” said Adrian Buckle, head of research at UK Finance. “These changes weren’t just driven by younger consumers."

He continued: "We saw growth in mobile wallets and Buy Now Pay Later across older age groups too, highlighting how digital payments are becoming more mainstream across the board. Action from regulators to improve competition, along with the rollout of the National Payments Vision, aimed at fostering a new era of innovation in payments, is helping to create the conditions for further change in the years ahead.”

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