UK Digital Wallet Market

UK Digital Wallet Market Overview:

The UK digital wallet market size reached USD 0.06 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 0.20 Billion by 2033, exhibiting a growth rate (CAGR) of 14.40% during 2025-2033. The UK digital wallet market share is expanding, driven by innovations in payment solutions to make them faster, more convenient, and user-friendly compared to traditional banking services, increasing adoption of wearable payment devices like smartwatches and fitness trackers, and rising popularity of cryptocurrencies.

UK Digital Wallet Market Trends:

Rise of Wearable Payment Devices

The increasing popularity of wearable payment devices like smartwatches and fitness trackers is impelling the UK digital wallet market growth. Individuals are using wearables to make contactless payments, eliminating the need to carry phones or wallets for convenience. These gadgets are frequently combined with well-known digital wallets, allowing easy transactions by simply tapping the device at checkout counters. Tech-savvy individuals and those looking for a simplified payment process are particularly drawn to the ease and quickness of wearable payments. Retailers are adopting this trend by enhancing their systems to accommodate wearable payments. In 2023, Samsung Electronics teamed up with Mastercard to release the Wallet Express initiative in the UK. This program enabled banks to incorporate Samsung Wallet, allowing users to make safe payments using their Galaxy devices, such as wearable technology. The partnership aimed to offer greater convenience and flexibility for in-store and online payments.

Growing Adoption of Fintech Solutions

The rising adoption of fintech solutions is offering a favorable UK digital wallet market outlook. Financial technology companies are introducing new payment options that are quicker, easier to use, and more convenient than traditional banking services. These companies are leveraging digital wallets as part of their broader strategy to shift away from conventional financial systems, offering individuals alternative ways to manage their money. Digital wallets are becoming crucial tools for modern banking, owing to their capabilities like peer-to-peer transfers, bill payments, and international remittances. Additionally, fintech companies are collaborating with conventional banks to incorporate digital wallet functionalities into their services, enabling clients to utilize a broader selection of financial services on their smartphones. In 2024, Revolut, a fintech company based in the UK, unveiled its mobile wallet feature to ease cross-border money transactions, which only needed simple identification details, such as a phone number or email address. This feature provided added convenience for expatriates and international students by providing fast and cost-effective transfers.

Increasing Popularity of Cryptocurrency Payments

With the rise in popularity of cryptocurrencies in the UK, the ability of digital wallets to support crypto transactions is attracting a new segment of users. Many digital wallets have the capability to store, transfer, and trade cryptocurrencies as well as regular currencies. This is appealing to people and investors seeking to use digital currencies for payments or investments. The increasing acceptance of cryptocurrencies as valid forms of payment in certain businesses is making digital wallets more versatile, accommodating the growing interest in decentralized finance. In 2024, MetaMask teamed up with Mastercard and Baanx to introduce the MetaMask Card in the UK and EU. This card enabled users to conduct immediate purchases by utilizing funds from their MetaMask wallet, with cryptocurrency being instantly converted to traditional currency upon transaction.

UK Digital Wallet Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type, deployment type, and industry vertical.

Type Insights:

• Proximity
• Remote

The report has provided a detailed breakup and analysis of the market based on the types. This includes proximity and remote.

Deployment Type Insights:

• On-Premise
• Cloud

A detailed breakup and analysis of the market based on the deployment types have also been provided in the report. This includes on-premise and cloud.

Industry Vertical Insights:

• Education
• Gaming
• Information Technology and Telecommunications
• Aerospace and Defense
• Legal
• Media and Entertainment
• Automotive
• Banking Financial Services and Insurance
• Consumer Goods
• Others

The report has provided a detailed breakup and analysis of the market based on the industry verticals. This includes education, gaming, information technology and telecommunications, aerospace and defense, legal, media and entertainment, automotive, banking financial services and insurance, consumer goods, 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 Digital Wallet Market News:

• In June 2024, DNA Payments unveiled ‘Alipay+ point of sale (POS)’ acceptance for over 50,000 merchants in the UK. This enabled companies to accept payments from 14 e-wallets and banking applications, mainly assisting international travelers from Asia. The initiative simplified mobile transactions globally within sectors, such as hospitality and retail.
• In November 2023, Apple Pay teamed up with the UK open banking system, enabling users to associate their debit and credit cards in the Wallet app. This function allowed users to check account balances, transaction records, and control their expenses straight from the wallet, enhancing financial clarity.

UK Digital Wallet Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK digital wallet market performed so far and how will it perform in the coming years?
• What is the breakup of the UK digital wallet market on the basis of type?
• What is the breakup of the UK digital wallet market on the basis of deployment type?
• What is the breakup of the UK digital wallet market on the basis of industry vertical?
• What are the various stages in the value chain of the UK digital wallet market? 
• What are the key driving factors and challenges in the UK digital wallet market?
• What is the structure of the UK digital wallet market and who are the key players?
• What is the degree of competition in the UK digital wallet 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 digital wallet market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK digital wallet 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 digital wallet 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.