'Pick and mix' approach to in-store payments
Last year, four in ten payments in the UK were made by debit card as the popularity of contactless cards continues to grow
The latest UK Payment Markets report found that almost half of UK adults used mobile banking in 2018, up from 41 per cent the previous year. The number of bank payments made using online or mobile banking in 2018 grew to two billion, up from 1.6 billion in 2017, as consumers and businesses increasingly choose to bank using their phones, tablets or computers.
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Hide AdBy the end of 2018, an estimated 8.5 million people were registered to buy goods and services using mobile payment services such as Google Pay, Apple Pay and Samsung Pay. This means that one in six of the adult population are now registered for mobile payment services, up from just two per cent in 2016.
Having overtaken cash in 2017, debit cards remained the most frequently used payment method in 2018, accounting for nearly 40 per cent of all payments. Almost the entire adult UK population now own a debit card and by 2024 debit cards are forecast to account for half of all payments in the country. The continued increase in debit card use has been in part driven by the growing popularity of contactless payments, which rose to 7.4 billion payments in 2018, an increase of 31 per cent on the previous year.
Stephen Jones, chief executive of UK Finance, said: “The same pick ‘n’ mix approach people now take when it comes to music, television or the news is expanding into payments, as consumers take advantage of new technologies to pay in a way that suits them.
“More and more customers are now opting for the speed and convenience of paying with their contactless cards, or using mobile banking to check their balances and make transfers while on the move. This rapid rate of technological change is set to continue over the coming decade, as people embrace the ever-widening number of ways to pay and manage their finances, depending on their needs and lifestyle."
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Hide Ad“We are working with the Joint Authorities Cash Strategy Group (JACS) and wider stakeholders, to ensure all customers have a choice in how they pay for goods and services in future.”
The figures also show that older customers are increasingly embracing the convenience of this technology, with over three-fifths of over-65s making contactless payments in 2018, up from 50 per cent in 2017. Overall 69 per cent of adults in the UK now use contactless payments, and no age group or region falls below 58 per cent usage.