A survey of over 1,000 UK consumers has revealed that in 2023 Apple Pay and Contactless Payments have overtaken cash payments by a landslide as our favourite ways to pay in-store, suggesting that the UK has become a contactless-first economy, ready to embrace Apple Tap to Pay to an even greater extent than other countries.
This is supported by a 2022 report released by Lloyds Bank that found 87% of UK face-to-face payments were contactless (up from 65% in 2019). In comparison, estimates from Payments Journal suggest that only 45% of Americans use contactless payments.
Key overall findings:
One in five respondents (20%) said mobile payments were their preferred choice, ahead of cash and Chip & PIN.
When asked why, 42% gave convenience as their main reason, followed by:
Mobile payments are most widely accepted option – 23%
I never carry cash – 19%
It’s the most secure option – 11%
I don’t know my PIN – 3%
Contactless is by far the most popular payment method in the UK. Mobile payments like Apple Pay came in 2nd and cash was 3rd
Nearly one in three people admit to never carrying cash
More than half admitted to being deterred from shopping at a cash-only business
In response to the data, Jodie Wilkinson, head of strategic partnerships at takepayments, says: “The new data shows fairly clearly that the majority of customers want to pay with contactless methods — whether that’s physical or digital cards — wherever they shop. Failing to accommodate these needs could put small businesses at a disadvantage, as cash-free shoppers may take their money elsewhere.
“Younger consumers are driving the adoption of mobile payments like Apple Pay, Google Pay, and PayPal. 3 in 10 (30%) 18- to 24-year-olds said that mobile payments were their favourite way to pay, compared with just 5% of Over 55s. Our own data also shows that contactless payments — including Apple Pay — grew by 596% in colleges and universities from 2021/22 to 2022/23. The FIS estimates that this continued growth of digital wallet payments will account for 21% of the UK market share by 2026.
“The launch of Apple Tap to Pay is further evidence that Fintech providers are increasingly recognising the UK as a progressive economy when it comes to payment technology”
