The latest Global Payments Report showed that digital wallet spending accounts for £269bn in UK payments, with that figure set to increase to £453bn by the end of the decade.

Around 40% of UK ecommerce spending in 2025 used digital wallets like Apple Pay or Google Pay to complete the transaction, it is already the number one way that people currently pay online.

Direct card spending on debit cards and credit cards combined makes up 46% of ecommerce spending currently. By 2030, Global Payments expects this to decrease to 35%.

 

Debit cards remain the main payment method for in-person purchases, but digital wallets are rising fast here too. The report forecasts that digital wallets will be used in 31% of in-person payments by 2030, leaving credit cards way behind on 21%.

“We’re not seeing a sudden shift away from cards, but a steady evolution in how people choose to pay. Digital wallets are growing quickly because, in the UK, they build on familiar card infrastructure while offering greater convenience and security,” said Global Payments general manager of enterprise EMEA Pete Wickes. 

“Expectations are moving toward convenience and choice, and merchants who adapt their payment systems to serve every customer will be best positioned to capture the opportunities ahead.”

The Digital Capability Index, a report released earlier this year by Retail Week and The Grocer showed that 54 out of the 65 leading high street brands offered at least one mobile payments option. Out of that 54, 27 offered more than one, for example both Apple Pay and Google Pay. 

 

Digital wallet usage is more popular among younger consumers in the UK. It is the top-choice online method of payment for 66% of those aged between 18 to 24 and was the top choice for every age bracket under 44. 

That being said, nearly one in four (23%) over 65s also said their preferred choice for making ecommerce payments was a digital wallet. 

Despite the huge changes in the UK, digital wallet usage is higher in several European countries and elsewhere around the world. In Germany, 52% of ecommerce payments use the technology, while in China the proportion is 89%.

Separate data from UK Finance released last year showed that cash represented under 10% of payments for the first time ever in 2024. This was down from 58% in 2009 and 23% in 2019. 

The Global Payments report forecasts its decline over the next few years to be more modest, falling from 9% of in-person payments in 2025 to 7% in 2030. 

It also has modest expectations for the growth of buy now, pay later (BNPL), with its share of ecommerce payments expected to rise by just one percentage point to hit 8% by the end of the decade.

Topics