Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

UK Consumer Attitudes towards Mobile Payments market report

"Despite the huge interest in mobile payments across the financial services industry, Mintel's research suggests that actual usage is low. Companies have two main challenges to overcome to achieve growth: they have to convince consumers that paying with a smartphone is a secure transaction method; and they need to give people a compelling reason to switch from using cards. Consumers are most likely to use mobile payments if they are rewarded for doing so through schemes such as Android Pay Day."

Rich Shepherd, Senior Financial Services Analyst

This report looks at the following areas:

  • Security concerns are consumers' biggest turn-off
  • Incentives are the key
  • A cardless, not cashless society

This Report looks at consumer attitudes towards mobile payments. This includes an examination of the market context surrounding contactless and mobile payments and regulatory changes in the industry, as well as looking at the main mobile payment services and innovations. Mintel's exclusive consumer research investigates the type of payments people make, how aware they are of mobile payment services and what types of transactions are made through smartphones.

Finally the Report examines consumer attitudes such as why people would choose to use make mobile payments, their thoughts on the security of these payments, and consumer concerns about the usability of the technology.

For the purposes of this Report, Mintel has used the following definitions:

  • Peer-to-peer mobile payment services: A number of the best-known mobile payment services involve transferring money via an app, rather than making a point-of-sale transaction. This includes the most well-known and widely used payments service, PayPal. These schemes are often used to transfer funds between individuals, but can also be used to pay companies.
  • Point-of-sale mobile payment services: Point-of-sale mobile payment services are schemes which allow in-store purchases. Currently, most of these services rely on near-field communication (NFC) technology. These are the systems which are most closely associated with the term mobile payments as a competitor to cash and cards. This includes Apple Pay and Android Pay.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Contactless spending grows without impinging on cash use
            • Figure 1: Monthly contactless card spend and average contactless card transaction value, May 2014-June 2017
          • Companies and brands
            • Launch activity and innovation continues apace
              • The consumer
                • Cash is still the most frequently used payment type
                  • Figure 2: Use of payment methods, aggregated, users in the last 6 months, February 2018
                • People are most likely to have used a desktop or laptop to pay
                  • Figure 3: Devices used for paying online, February 2018
                • Poor technical performance could hold payments apps back
                  • Figure 4: Barriers to payment app use, February 2018
                • Biometrics offer convenience for users
                  • Figure 5: Comfort with payment innovations, February 2018
                • Most people feel contactless payments expose them to fraud
                  • Figure 6: Attitudes towards payment innovation, February 2018
                • What we think
                • Issues and Insights

                  • Could using selfies for purpose, rather than pleasure, face resistance?
                    • The facts
                      • The implications
                        • PayPal is poised to make a clean sweep of the payment space, but will it?
                          • The facts
                            • The implications
                            • The Market – What You Need to Know

                              • Contactless spending looks set to continue growing despite concerns
                              • Market Context

                                • Contactless spending looks set to continue growing despite concerns …
                                  • Figure 7: Monthly contactless card spend and average contactless card transaction value, May 2014-June 2017
                                • … supported by broader roll-out of contactless-enabled cards
                                  • Figure 8: Number of contactless cards issued, May 2014-June 2017
                                • Cash withdrawals have reached a plateau
                                  • Figure 9: Cash withdrawal volumes, including by customers using their own banks’ or building societies’ ATMs, 2001-17
                                • Implementation of PSD2 lays the groundwork for payments integration
                                • Companies and Brands – What You Need to Know

                                  • Payment providers explore the potential of blockchain technology
                                  • Launch Activity and Innovation

                                    • Retailers and payment providers begin to respond to cryptocurrencies
                                      • Currency specialist Revolut introduces cryptocurrency exchange
                                        • Cosmetics retailer Lush begins accepting Bitcoin online
                                          • Santander launches blockchain currency transfer service
                                            • Glint counteracts volatility by offering payment in gold
                                              • Foodservice industry looks to payment apps for efficiency
                                                • Mastercard Qkr! app offers bill splitting solution for foodservice
                                                  • Wetherspoon launches ‘Order and Pay’ app
                                                    • Amazon opens first checkout-free Amazon Go grocery store in the US
                                                    • The Consumer – What You Need to Know

                                                      • Cash is still the most frequently used payment type
                                                        • People are most likely to have used a desktop or laptop to pay
                                                          • Poor technical performance could hold payments apps back
                                                            • Biometrics offer convenience without compromising security
                                                              • Most people feel contactless exposes them to fraud
                                                              • Payment Method Use

                                                                • Cash is still the most frequently used payment type
                                                                  • Figure 10: Use of payment methods, February 2018
                                                                  • Figure 11: Use of payment methods, aggregated, users in the last 6 months, February 2018
                                                                • Contactless wrestles with familiar barriers
                                                                  • Over-55s the most reluctant to adopt contactless
                                                                      • Figure 12: Use of payment methods, aggregated, by demographics, February 2018
                                                                  • Devices and Methods Used for Paying Online

                                                                    • People are most likely to have used a desktop or laptop to pay
                                                                      • Figure 13: Devices used for paying online, February 2018
                                                                    • 69% of under-25s have made a smartphone payment or transfer
                                                                        • Figure 14: Devices used for paying online, by age, February 2018
                                                                      • Apps more commonly used than browsers on mobile devices
                                                                          • Figure 15: Paying online using a tablet or smartphone, app vs browser, February 2018
                                                                        • Older people are more likely to stick with apps
                                                                          • Figure 16: Paying online using a tablet or smartphone, app vs browser, by age, February 2018
                                                                      • Barriers to Payment App Use

                                                                        • Poor technical performance could hold payments apps back
                                                                          • Delays prove tough to tolerate
                                                                            • Figure 17: Barriers to payment app use, February 2018
                                                                            • Figure 18: Number of barriers to payment app use, February 2018
                                                                          • Innovation can help reduce barriers, rather than building them
                                                                              • Figure 19: Comfort with payment innovations, by barriers to payment app use, February 2018
                                                                          • Comfort with Payment Innovations

                                                                            • Biometrics offer convenience without compromising security
                                                                              • Contactless smartphone payments suffer dual security fears
                                                                                • Figure 20: Comfort with payment innovations, February 2018
                                                                                • Figure 21: Comfort with payment innovations, February 2018
                                                                              • Under-45s show interest in native messenger app payments
                                                                                • Figure 22: Comfort with selected payment innovations, by age, February 2018
                                                                            • Attitudes towards Payment Innovation

                                                                              • Most people feel contactless exposes them to fraud
                                                                                  • Figure 23: Attitudes towards payment innovation, February 2018
                                                                                • The public questions the need for more payment methods
                                                                                  • Under-45s more likely to feel comfortable with a fully cashless society
                                                                                      • Figure 24: Attitudes towards cashless payment methods, by age, February 2018
                                                                                    • The practicalities of facial recognition may face resistance
                                                                                      • Figure 25: Agreement with the statement ‘I would be comfortable allowing retailers to hold data relating to my personal appearance’, by comfort with payment innovations, February 2018
                                                                                    • Currency specialists could profit from messaging app integrations
                                                                                      • Figure 26: Agreement with the statement ‘I like the idea of using a payment card linked to an app that holds your foreign currency for spending abroad’, by comfort with payment innovations, February 2018
                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                      • Abbreviations
                                                                                        • Consumer research methodology