In-app wallets are proving to be a popular payment method in the UK, as one in four Brits say they use them up to three times a week according to new research from flexible wallet infrastructure provider, Mangopay.
The study from Mangopay examined responses from 1,000 UK consumers and 5,000 from across Europe (Spain, Italy, Germany and France). It found that while debit and credit cards remain the most popular payment method in the UK, in-app wallets are gaining a lot of traction and have now taken second place as we approach the summer months – often associated with rising costs.
Mangopay launched the study as 87 per cent of UK adults identify the cost of living as one of the most important issues facing the country, according to the Office for National Statistics (ONS). Far from being just a convenient way to pay, in-app wallets are emerging as powerful financial tools.
Over a quarter of users (26 per cent) collect loyalty points or rewards, 44 per cent earn money through digital platforms (rising to 67 per cent of 16–24-year-olds), and 41 per cent even prefer refunds paid directly into their wallets over their bank accounts.
This data comes as Mangopay releases its new research report, Insights into In-App Wallets: What Platforms Must Know About User Behaviour and Expectations. The report provides insights into how in-app wallets are reshaping user experiences on platforms, underscoring the growing role of digital wallets not just as a payment tool, but as a key driver of user retention, engagement, and platform growth.
Dealing with rising prices
As prices rise and Brits look for smarter ways to spend, the research shows in-app wallets are now being used across a wide range of activities, from everyday purchases to renting cars, booking flights, accommodation and more. Unsurprisingly, loyalty rewards are the most requested feature, with 44 per cent of users saying it would improve their in-app wallet experience. A further 14 per cent would be keen to gain access to budgeting tools such as spending trackers and financial planning.
The study also reveals the top factors influencing wider platform spending decisions include competitive prices (45 per cent), transparent pricing (35 per cent), and return and refund policies (35 per cent). Looking at younger shoppers, 44 per cent of 16-24-year-olds are driven by free shipping or exclusive deals, while 55% per cent of 25-34-year-olds cite cashback incentives as their top motivator.
Alex Taylor, UK managing director, Mangopay, comments: “In today’s economy, every pound counts. As Brits face mounting pressures from the cost-of-living squeeze, in-app wallets are emerging as a powerful tool to help them unlock rewards and make their money go further. British shoppers are no longer just looking for convenience, they’re expecting tangible financial benefits alongside strong privacy and security policies.
“Platforms that fail to adapt to this shift risk losing out on valuable customer loyalty in an increasingly competitive market. By partnering with the right wallet provider, platforms can create better payment experiences and unlock new revenue opportunities.”
Compared to the rest of Europe
While consumers across Europe are united in looking for value and transparency while shopping, the factors influencing purchasing decisions vary between countries.
In Spain and Italy, faster refunds are the standout feature, with 46 per cent and 43 per cent respectively citing this as the most important factor when deciding to spend on a platform. Meanwhile, in France, 42 per cent of consumers value loyalty rewards. However, its competitive pricing (53 per cent) drives the decision on where to shop. Lastly, in Germany, shoppers are most influenced by free shipping (51 per cent), cashback (49 per cent), and discounts on future purchases (40 per cent)
Despite strong growth, in-app wallet usage still shows a clear generational divide in the UK. While 40 per cent of 16–24-year-olds are active users, this falls to 17 per cent among 45 – 54-year-olds. Adoption is being held back by ongoing concerns around trust: 46 per cent of UK consumers say privacy and data security issues discourage them from using digital wallets. This concern is especially high among older consumers (48 per cent of over-55s, compared to 33 per cent of 16–24-year-olds).
Source: https://thefintechtimes.com/
