As UK shoppers prepare for a costlier summer, new research from flexible wallet infrastructure provider for platforms Mangopay reveals in-app wallets gaining traction with Brits as a convenient way to earn rewards and manage spending.
The study, based on a poll of 1,000 UK consumers and 5,000 across Europe (UK, Spain, Italy, Germany and France), shows that 1 in 4 Brits (25%) with in-app wallets are using them up to three times a week, and they’ve become the UK’s second most popular payment method, behind only debit and credit cards.
This comes as 87% of UK adults identify the cost of living as one of the most important issues facing the country, according to the Office for National Statistics (ONS). Far from being just a convenient way to pay, in-app wallets are emerging as powerful financial tools. Over a quarter of users (26%) collect loyalty points or rewards, 44% earn money through digital platforms (rising to 67% of 16–24-year-olds), and 41% even prefer refunds paid directly into their wallets over their bank accounts.
As prices rise and Brits look for smarter ways to spend, the research shows in-app wallets are now being used across a wide range of activities, from everyday purchases to renting cars, booking flights, accommodation and more. Unsurprisingly, loyalty rewards are the most requested feature, with 44% of users saying it would improve their in-app wallet experience. A further 14% would be keen to gain access to budgeting tools such as spending trackers and financial planning.
The study also reveals the top factors influencing wider platform spending decisions include competitive prices (45%), transparent pricing (35%), and return and refund policies (35%). Looking at younger shoppers, 44% of 16-24-year-olds are driven by free shipping or exclusive deals, while 55% of 25-34-year-olds cite cashback incentives as their top motivator.
While consumers across Europe are united in looking for value and transparency while shopping, the factors influencing purchasing decisions vary between countries:
- In Spain and Italy, faster refunds are the standout feature, with 46% and 43% respectively citing this as the most important factor when deciding to spend on a platform
- In France, while 42% of consumers value loyalty rewards, it’s competitive pricing (53%) that drives the decision on where to shop
- In Germany, shoppers are most influenced by free shipping (51%), cashback (49%), and discounts on future purchases (40%)
Despite strong growth, in-app wallet usage still shows a clear generational divide in the UK. While 40% of 16–24-year-olds are active users, this falls to 17% among 45–54-year-olds. Adoption is being held back by ongoing concerns around trust: 46% of UK consumers say privacy and data security issues discourage them from using digital wallets. This concern is especially high among older consumers (48% of over-55s, compared to 33% of 16–24-year-olds).
Alex Taylor, UK managing director, Mangopay, comments: “In today’s economy, every pound counts. As Brits face mounting pressures from the cost-of-living squeeze, in-app wallets are emerging as a powerful tool to help them unlock rewards and make their money go further. British shoppers are no longer just looking for convenience, they’re expecting tangible financial benefits alongside strong privacy and security policies. Platforms that fail to adapt to this shift risk losing out on valuable customer loyalty in an increasingly competitive market. By partnering with the right wallet provider, platforms can create better payment experiences and unlock new revenue opportunities.”
This data comes as Mangopay releases its new research report, “Insights into In-App Wallets: What Platforms Must Know About User Behaviour and Expectations.” The report provides insights into how in-app wallets are reshaping user experiences on platforms, underscoring the growing role of digital wallets not just as a payment tool, but as a key driver of user retention, engagement, and platform growth.
For over a decade, Mangopay’s wallet infrastructure has been empowering top-tier platforms to scale and take control of their payment flows. Industry players like Vinted, ManoMano, Paybyrd, Sorare, Malt, Travelnest, Mobile.de, and many more have been using wallets to grow faster, simplify operations, and lead in the global platform economy.
