UK Contactless Payments Market

UK Contactless Payments Market Overview:

The UK contactless payments market size reached USD 469.62 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 724.29 Billion by 2032, exhibiting a growth rate (CAGR) of 4.40% during 2024-2032. The growing preferences for convenient and speedy payment options among individuals, rising use of mobile wallets and digital payment apps, and increasing adoption of wearable technology, such as smartwatches and fitness trackers, are some of the factors impelling the market growth.

UK Contactless Payments Market Trends:

Growing User Preference for Convenience

The rising demand for convenient and speedy payment options among individuals represents one of the key factors impelling the market growth in the UK. Contactless technology enables quicker transactions than traditional chip-and-pin or cash payments, making it a popular choice for everyday shopping. Retailers, eateries, and public transportation services are widely adopting contactless payments, which are favored by users who value ease and efficiency. The growing dependence on smartphones and wearable technology is leading to higher usage of contactless payments via mobile wallets and apps, providing a more convenient option for individuals to make touch-free payments. In 2024, Glasgow's hospitality software company, Freetobook, introduced a new payment program that enables UK hotels to take contactless payments through the GuestTappy app on iPhones. This system removes the necessity for extra hardware, offering a smooth and safe method for businesses to handle payments. It facilitates contactless payments via credit and debit cards, Apple Pay, and other e-wallets.

Rise of Mobile Wallets and Digital Payment Apps

The growing use of mobile wallets and digital payment apps, which provide users with the convenience of storing their payment information securely on smartphones, is enabling quick and easy transactions. Mobile wallets are becoming the preferred method for tech-savvy individuals who prioritize speed and efficiency. Their integration with different digital services and payment systems improves user experience by simplifying the management of finances, monitoring spending, and accessing rewards programs. This seamless functionality is contributing to the rising number of contactless transactions in sectors such as retail, hospitality, and transportation. In 2024, DNA Payments introduced Alipay+ point of sale (POS) acceptance to more than 50,000 UK merchants. This allows businesses to receive payments from 14 e-wallets and banking apps, primarily helping foreign visitors from Asia. The project streamlines mobile payments across borders in industries, including hospitality and retail.

Increasing Adoption of Wearable Payment Devices

Wearable technology, such as smartwatches and fitness trackers, are providing users with a convenient way to make transactions quickly, without the need for a physical card or smartphone. Wearables are equipped with features that allow for secure, seamless payments through technologies like near-field communication (NFC). The simplicity of making payments with just a wrist tap is highly attractive to individuals who value efficiency and ease, particularly in environments where speed is crucial, including commuting or shopping. In 2023, McLEAR introduced RingPay, its wearable payment device, on Amazon UK. The smart ring allowed users to make contactless payments at locations supporting the technology, without the need for a phone or battery. It operated on the VISA network and was managed via a mobile app, providing a secure and seamless payment experience.

UK Contactless Payments Market News:

• February 2024: Transport for Wales introduced a new contactless Pay-As-You-Go system that includes journeys from Cardiff Central to Newport and Pontyclun. The program will grow to 95 stations in South Wales by 2024, providing fixed prices for daily and weekly trips.
• December 2023: Square introduced its Tap-to-Pay capability on iPhone in the UK, enabling merchants to receive contactless payments without the need for extra equipment. The function makes it easier for users to make in-person purchases by allowing them to simply tap their cards or devices on the seller's iPhone.

UK Contactless Payments Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on type and application.

Type Insights:

• Smartphone Based Payments
• Card Based Payments
  • Credit Cards
  • Debit Cards
  • Others
     

The report has provided a detailed breakup and analysis of the market based on the type. This includes smartphone based payments and card based payments (credit cards, debit cards, and others).

Application Insights:

• Retail
  • Consumer Electronics
  • Fashion & Garments
  • Others
• Transportation
• Healthcare
• Hospitality
• Others
   

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes retail (consumer electronics, fashion & garments, and others), transportation, healthcare, hospitality, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Contactless Payments Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK contactless payments market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK contactless payments market?
• What is the breakup of the UK contactless payments market on the basis of type?
• What is the breakup of the UK contactless payments market on the basis of application?
• What are the various stages in the value chain of the UK contactless payments market? 
• What are the key driving factors and challenges in the UK contactless payments?
• What is the structure of the UK contactless payments market and who are the key players?
• What is the degree of competition in the UK contactless payments market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK contactless payments market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK contactless payments market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK contactless payments industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.