A new study from Marqeta, the card issuing platform, has revealed that embedded finance is experiencing significant growth in the UK, with consumers increasingly embracing the convenience it offers, particularly in the realm of payments. The annual ‘State of Payments’ report surveyed 4,000 consumers across three continents, including 1,000 from the UK.
The findings indicate that 72% of UK mobile wallet users surveyed have made a purchase through a retailer’s embedded mobile app, citing the enhanced experience as a key driver. Additionally, 73% of UK mobile wallet users expressed confidence in leaving their physical wallet at home and relying solely on their mobile phone for payments.
The study also highlights the growing popularity of digital payment processes, with 76% of UK respondents stating that they always add new cards to their mobile wallets. Furthermore, 89% find this process to be simple, representing an increase from 81% in 2022. Consequently, 93% of UK mobile wallet users surveyed reported having one or more cards loaded into their mobile wallets.
Other notable payment trends in the UK include 73% of consumers having used peer-to-peer (P2P) payment transactions, 95% using contactless payments in the past year, 68% using a mobile wallet in the last year, and 65% believing that cash will eventually disappear, with 44% expecting this to happen within the next decade.
Despite the growing demand for digital and embedded finance services, UK consumers remain loyal to traditional banks, with 84% using a traditional bank as their primary provider. Additionally, 77% of respondents expressed no intention of changing their primary banking provider, with most relying on their primary bank for debit card (77%) or savings account (53%) services.
Jeff Parker, SVP and managing director of international at Marqeta, emphasized the importance of embedded finance, stating that it enables brands to offer streamlined payment experiences and that companies failing to provide these solutions risk missing out on future adoption. He noted that traditional providers and new-age payment services are currently coexisting, but long-term consumer loyalty will depend on those who can deliver exceptional end-to-end user experiences.
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