PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1389984
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1389984
The United Kingdom's digital wallet industry is expected to grow at a compound annual growth rate of 16.82% over the forecast period to reach an industry size of US$272.864 billion in 2028, from US$91.891 billion in 2021.
A digital wallet is a virtual platform that allows users to store and manage their payment information securely on their smartphones or other digital devices. It enables users to make online payments, store loyalty cards, access digital coupons, and perform various other financial transactions conveniently. The widespread usage of smartphones in the UK has created a favorable environment for digital wallets.
With most of the population owning smartphones, digital wallet services can easily be accessed by a large user base. According to Cybercrew, the UK smartphone industry by 2025 Is expected to reach 64.83 million. Moreover, in 2019 and 2020, the share of respondents using mobile phones was 95% in the UK, but by 2021 the number of mobile internet users in the UK reached 62.3 million, a figure which is projected to increase by approximately 2.86 million and amount to over 65 million by 2026. Moreover, advanced technology for boosting the growth of digital transactions is likely to support market growth in the future. For instance- According to Department for Digital, Culture, Media, and Sport in the United Kingdom, the G7 Digital and Technology Ministerial Declaration supported the United Kingdom in initiating an industry-led multi-stakeholder strategy to create technical standards for digital transactions.
The UK has witnessed a significant rise in contactless payment adoption, where users can make payments by simply tapping their cards or smartphones on a payment terminal. Digital wallets facilitate contactless payments by securely storing card information and enabling quick and convenient transactions. Moreover, these digital wallets offer a convenient and secure alternative to traditional payment methods. Users can store multiple payment options in a single app, eliminating the need to carry physical cards. Additionally, digital wallets employ encryption and tokenization techniques to protect sensitive information, enhancing security and reducing the risk of fraud.
Payment services throughout the world, including the United Kingdom, are fast transitioning toward accepting and transferring payments using digital payment apps such as Paypal, Mastercard, and others. This trend is likely to continue during the projection period, owing to factors such as increased internet penetration and significant expansion in online shopping. according to the International Trade Administration, online shopping is more prevalent in the United Kingdom than in other nations. E-commerce customers are estimated to account for 36% of the overall retail industry.
The payment industry in the United Kingdom has seen rapid growth, with new providers, systems, and payment technologies entering the industry. Increased internet usage and penetration of smartphones in the region are expected to considerably impact the digital payments sector in the researched nation. Additionally, growing electronic payment knowledge and continually expanding payment networks have successfully simplified the use of electronic payment methods during the day activities. Furthermore, the G7 Digital and Technology Ministerial Declaration, according to the Department for Digital, Culture, Media, and Sport, enhanced the UK's support for an industry-led, inclusive, multi-stakeholder strategy to create technical standards. The UK-led agreement on numerous emphases to leverage technology for greater post-pandemic growth is part of the G7 Presidency. The Future Tech Forum was held in the United Kingdom in 2021.
With the rise in higher consumer adoption of smart gadgets such as smartphones & increasing internet penetration across the nation, there is an increased transaction for money transfer promoting market growth. According to estimates from UK Finance, the number of payment transactions done via remote banking increased from 2500 million in 2019 to around 4100 million by 2021. This is also due to the enhanced growth of a faster payment ecosystem in the past pandemic phase & growth of e-commerce transactions as well. This indicates favorable prospects for money transfer payments in the upcoming years. With the innovative payment system services in the United Kingdom market, transactions will be made faster including accepting & transferring payment with the use of digital apps such as PayPal, Mastercard among others. With the entry of new service providers & payment technologies, the United Kingdom market is expected to see greater instances of online transactions related to money transfer payments.