The rapid growth of smartphone adoption is accelerating the use of mobile payments across the United Kingdom, creating new opportunities for banks and payment providers. Recent research from VocaLink shows strong consumer interest in using smartphones for everyday transactions, supported by growing trust in financial institutions and the availability of mobile banking services. Younger consumers are leading the shift toward digital payments, using their devices to send money, make purchases, and pay for services such as parking. Combined with the UK’s established Faster Payments infrastructure, these trends are helping drive the expansion of smartphone payments and reshaping how consumers interact with their finances.
British consumers adopting smartphones has led to a sharp increase in mobile payments, according to a survey from VocaLink. Some 20 percent of British consumers already use mobile payment services, while 30 percent of those surveyed are interested in using them in the near future.
Some 41 percent of young adults between the ages of 16 and 24 are the most likely to pay using smartphones. Respondents cited several reasons for using the technology, including sending funds to friends and family, paying for parking, and shopping for goods at a supermarket.
From Finextra:
“The prolific growth in smartphone ownership and app usage, combined with an already established mobile banking market and the availability of Faster Payments, means we are entering a perfect storm for mobile commerce. Our research confirms there is prevailing consumer trust in the banks to provide this service,” said Paul Stoddart, Managing Director Strategy & Business Development at VocaLink.
Despite consumers’ frustration with many UK banks, the survey results suggest they still trust them to provide efficient and secure mobile-payment methods over other parties. Some 35 percent of consumers stated that they would be more likely to pay for items if a bank provided the smartphone payment service. Sixty-three percent of respondents already using digital payment tools stated they would also trust their banks to provide this service.
With consumers clearly interested in digital payment options and preferring the service to come from a traditional financial institution, banks in the UK should seize the opportunity and provide both enhanced mobile banking and smartphone-based payment services to their customers.
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