UK Consumers Lead Global Shift to Digital Payments

UK consumers are at the forefront of adopting digital financial services, driven by a growing demand for more innovation and convenience in payments and banking, according to Marqeta.

The 2024 State of Payments report shows the UK is leading in digital financial services adoption as 80% of UK respondents reported using contactless payments in the past week.

In comparison, 69% of Australian respondents and 46% of US respondents said the same.

Meanwhile, only 56% of Americans have used their mobile banking app in the past seven days, compared to 67% of Australians and 71% of respondents in the UK.

UK consumers have also embraced the transition to digital wallets more than their US counterparts — 74% said they automatically add a new card to their mobile wallet and 40% used a mobile wallet in the past week.

In addition, 68% feel confident enough to leave their physical wallets at home, which demonstrates the societal shift to increased reliance on digital payments, according to Marqeta.

By comparison, only 53% of consumers in the US feel confident leaving their physical wallets at home. However, this figure increases to 67% among respondents aged between 18 and 25.

Despite leading the way in digital payments adoption, UK consumers are slower to fully embrace digital-only banking solutions.

The report found that just 20% of UK consumers would consider shifting completely to a digital-only bank and only 39% would consider using a non-financial provider.

In comparison, 43% of US consumers are open to obtaining financial services from non-traditional providers such as social media platforms, retailers or tech brands. This willingness rises to 63% among US consumers that are 18 to 34 years old.

Marcin Glogowski, managing director Europe and UK CEO at Marqeta, said: “While traditional banks still have a hold on the UK market, consumers are experimenting with new payment and banking options alongside their traditional banks, and they're very open to exploring embedded finance offerings from non-financial services companies.”