Brits finally warming to Apple Pay, Cardlytics
After years of hype but very little action, the uptake of mobile payments such as Apple, Google and Android Pay in the UK has quadrupled over the last 24 months, according to Cardlytics data based on 190 million transactions made by 6.4 million bank customers.
As a proportion of total payments, mobile transactions in the UK have jumped from 1.3% in Q3 2016 to 5.6% in Q3 2018. Compared to this time last year, they have increased by 60%. Still pretty niche then, but heading in the right direction.
In the contactless £30 range, the number of transactions accounted for by mobile payments increased from 1.8% in Q3 2016, to 4.6% in Q3 2017 and then 7% in Q3 2018. The biggest beneficiaries are quick-service merchants. London is, somewhat unsurprisingly, by far the biggest adopter, accounting for 7% of payments less than £30 and 5.7% of all transactions – at least 2% higher than any other region.
“The huge growth in contactless payments has been well documented, and we’re now seeing mobile payments making a big contribution to that growth, often at the expense of cash,” says Duncan Smith, Commercial Director at Cardlytics.
“Having a broader view of consumer spending in categories that were previously cash-heavy allows us to provide more relevant rewards at places where consumers prefer to shop. This is also a big opportunity for banks because by offering these rewards through their native channels, we are helping to build loyalty and increase share of wallet.”