Forget Your Wallet, the Future is Digital: UK Consumers Embrace Digital Wallets
The days of digging for cash or fumbling for cards are fading in the UK, with digital wallets fast becoming the preferred payment method. In fact, nearly half of British consumers plan to continue using these handy tools over the next three years, with younger generations leading the charge.
"Gen Z leads usage of digital wallets in the UK, while Millennials are also avid users," reports a collaborative study by PYMNTS Intelligence and Google Wallet titled “Digital Wallets Beyond Financial Transactions: U.K. Edition.”
But it’s not just about making online purchases anymore. The study reveals that digital wallets are evolving into multi-purpose tools, deeply integrated into everyday life.
From boarding passes to concert tickets, 21% of UK consumers are leveraging their digital wallets for travel-related activities. This trend is particularly popular with younger demographics, with 37% of Gen Z and 27% of Millennials using their digital wallets while traveling.
"Eighty-eight percent of Gen Z respondents reported needing to verify their identity in the past year," the study points out, especially for age-restricted purchases like alcohol or tobacco.
Besides travel and verification, digital wallets are also shaking up the peer-to-peer payment space. P2P transactions are gaining momentum, with millennials and Gen Z using their wallets to split restaurant bills and send money to friends.
Looking ahead, the study predicts that 27% of all UK consumers will use their digital wallets for identity verification in the next three years. Such a shift could make physical IDs a thing of the past, with digital wallets becoming the primary means of proving identity for everything from financial transactions to entering restricted venues.
The increasing versatility of digital wallets makes them more than just a payment method; they are evolving into a comprehensive tool for managing various aspects of daily life. As adoption continues to grow, digital wallets are poised to become even more interwoven into the fabric of British society, offering a glimpse into a future where physical wallets might become relics of the past.
