United Kingdom Digital Wallet Market Size, Share, Opportunities, And Trends By Device (PC/Laptops, Smartphones), By Application (Money Transfer, Recharge, Movie Booking, Food ordering, Others), And By Region - Forecasts From 2025 To 2030

The United Kingdom digital wallet market is expected to grow at a CAGR of 16.52%, reaching a market size of US$381.114 billion in 2030 from US$177.517 billion in 2025.

A digital wallet is a virtual platform that allows users to store and manage their payment information securely on their smartphones or other digital devices. It enables users to make online payments, store loyalty cards, access digital coupons, and perform various other financial transactions conveniently.  The widespread usage of smartphones in the UK has created a favourable environment for digital wallets.

Moreover, the UK e-commerce industry is still expanding at an exponential rate. Consequently, customers are increasingly demanding the best of both worlds and internet shopping is merging into a conventional store-based business. Owing to rising internet penetration and expanding smartphone usage, more individuals are embracing digital wallets to complete purchases.

The increased penetration of the internet is playing an important role in the increased digital payment usage. In the UK, individuals using the internet increased from 94.8% in 2020 to 95.3% in 2022.  The E-wallet payment system offers services outside of processing payments to businesses, like integrating loyalty cards and serving marketing functions.

What are the United Kingdom digital wallet Market Drivers?

• Rising Contactless Payments are contributing to the United Kingdom's digital wallet market expansion

The UK has witnessed a significant rise in contactless payment adoption, where users can make payments by simply tapping their cards or smartphones on a payment terminal. Digital wallets facilitate contactless payments by securely storing card information and enabling quick and convenient transactions. Moreover, these digital wallets offer a convenient and secure alternative to traditional payment methods. Users can store multiple payment options in a single app, eliminating the need to carry physical cards. Additionally, digital wallets employ encryption and tokenization techniques to protect sensitive information, enhancing security and reducing the risk of fraud.

• Advancements in E-Commerce is anticipated to increase the market demand

The digital wallet market is witnessing an upsurge due to increased demand for e-commerce across different segments. According to the International Trade Administration, eCommerce revenues in the UK are expected to have an annual average growth rate of 12.6% by 2025. The UK has the third largest eCommerce market in the world after China and the U.S.

Moreover, the people of the UK are looking for the best deals and prices and this is driving the proportion of money being spent online. The internet has become the place for shoppers to look for fashion, health and beauty, home and garden, consumer electronics, and travel services. eCommerce revenue is projected to increase to 285.60 billion dollars by 2025.  Mobile phone connections were 71.8 m in 2022, and internet users were approximately 66 m.

The United Kingdom digital wallet Market is analyzed into the following segments

• By device, mobile is anticipated to grow during the forecast period

The UK has seen a strong expansion in the digital wallet market, driven by widespread and affordable smartphone ownership. This growth has led to a rise in mobile banking for a wide range of the country’s population, making it easier for them to make cashless payments viably. Mobile banking provides ease of use and accessibility by removing the necessity for physical cash or cards. Improved mobile security technologies have rendered mobile digital wallets less vulnerable and essentially hacked-proof from data breaches or fraudulent activities.

Following this, the UK financial source data of the UK Payment Market 2023 showed that in 2022, about 54% of people aged between 16-24 were registered to use mobile payments, which is the highest. This is followed by the age group of 25-34 accounting for 48%, while the 35-44 age group was 38%, 45-54 was 24%,  55-64 was 15%, and more than 65 aged individuals 12%. Moreover, the use of non-cash transactions is increasing in the UK, providing an edge for market expansion as the use of mobile is anticipated to rise for a larger number of people during the forecasted period. For instance, as per Atoa Payments Limited data of May 2024, the UK mobile payments market has soared since the Covid-19 pandemic, with more than 10 million active users since cash usage for in-store transactions plummeted.

• By industry vertical, food & beverages are anticipated to hold a significant market share

In the food and beverage industry, United Kingdom digital wallets are highly used to protect edible material by immediately removing microorganisms. They are very effective in killing harmful microbes like viruses and bacteria. For food processing industries, United Kingdom digital wallets are utilized to mitigate the growth of undesired microorganisms on products and equipment. This demand for food safety and health is supposed to be the main driver of market expansion in the coming years, which will also be influenced by the increasing population’s demand for safe food. For instance, the India Brand Equity Foundation (IBEF) data on the food processing sector market size in India predicted a potential rise in the sector from US$866 billion in 2022 to account for US$1,274 billion by 2027.

Geographical Outlook of the United Kingdom digital wallet Market:

• Scotland is witnessing exponential growth during the forecast period.

The use of smartphones and the internet makes digital wallets easily accessible to a huge percentage of the Scottish population. According to the Scottish Government, 98% of internet users use it at home, while 67% of internet users access the internet on the move through mobile phones or tablets. In addition, the usage of mobile gadgets among Scots in several contexts, including purchasing and payments, has boosted the interest in digital wallets. It also offers convenience because one does not have to deal with real cards or cash when using an e-wallet.

Furthermore, Scottish customers are growing more conscious of the need for data protection, which further fuels the demand for digital wallets with superior security features. Scotland-based digital wallet companies have had to experience a substantial influence on the General Data Protection Regulation (GDPR) in the UK as far as customer data is concerned. Moreover, most digital wallets have incorporated loyalty programs and personalized offers which give Scottish customers spurs the use of digital wallets.

Key Launches in the United Kingdom Digital Wallet Market:

• In July 2024. the Financial Services Regulator (PSR) and the Financial Conduct Authority (FCA) released a call for information (CFI) on digital wallets and BigTech that is valid until September 13, 2024. According to the CFI, the proportion of retail payments in the UK that involve a digital wallet is increasing. In 2023, it is estimated that 14% of point-of-sale terminal transactions and 38% of e-commerce transactions, by value, featured a digital wallet.

The United Kingdom digital wallet market is segmented and analyzed as follows:

• By Device
  • PC/Laptops
  • Mobile
• By Application
  • Money Transfer
  • Recharge
  • Movie Booking
  • Food Ordering
  • Others
• By Region
  • England
  • Wales
  • Scotland
  • Northern Ireland

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5.  UNITED KINGDOM DIGITAL WALLET MARKET BY DEVICE

5.1. Introduction

5.2. PC/Laptops

5.3. Mobile

6.  UNITED KINGDOM DIGITAL WALLET MARKET BY APPLICATION

6.1. Introduction

6.2. Money Transfer

6.3. Recharge

6.4. Movie Booking

6.5. Food Ordering

6.6. Others 

7.  UNITED KINGDOM DIGITAL WALLET MARKET BY REGION

7.1. Introduction

7.2. England

7.3. Wales

7.4. Scotland

7.5. Northern Ireland

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Payment

9.1.1. Samsung

9.1.2. Apple Inc.

9.1.3. Paypal

9.1.4. Google LLC

9.1.5. HSBC

9.1.6. ALTPAY LTD

9.1.7. Atomic Wallet

9.2. Identity

9.2.1. Samsung

9.2.2. Apple Inc.

9.2.3. Google LLC

9.3. Access

9.3.1. Samsung

9.3.2. Google LLC

9.3.3. Paypal

9.4. White Label Platform

9.4.1. Mastercard

9.4.2. Netcetera

9.4.3. Velmie

9.4.4. puresoftware

• Payment
  • Samsung
  • Apple Inc.
  • Paypal
  • Google LLC
  • HSBC
  • ALTPAY LTD
  • Atomic Wallet
• Identity
  • Samsung
  • Apple Inc.
  • Google LLC
• Access
  • Samsung
  • Google LLC
  • Paypal
• White Label Platform
  • Mastercard
  • Netcetera
  • Velmie
  • puresoftware