The use of Google Pay and Apple Pay at the checkout is set to become more popular among Brits, with almost a quarter of smartphone users assumed to tap and go at the till by the end of 2018.
However, according to analysts, the pace of growth is said to slow down in the long term with the ubiquity of contactless cards expected to be holding back the uptake of mobile payments.
A fresh forecast from eMarketer estimates that 22 percent of the people with smartphones will be making use of their phone to pay by the end of the year, up from only 13 percent in 2016 or the equivalent of around 9.2m people.
Growth is expected to continue in double digits for the next three years. However, it will slow down, dropping to 8.5 percent in 2021, with 29 percent (12.6m) of smartphone users opting to pay using their phones.
“There’s no doubt that mobile proximity payments are beginning to get a foothold in the UK,” stated Bill Fisher, an eMarketer senior analyst.
“But they face some tough competition that just isn’t present in many other countries. Any standard issue bank card in the UK, both debit and credit, now comes with contactless technology as standard. Mobile proximity payment providers need to convince consumers that their tech offers benefits above and beyond this well-entrenched, and incredibly convenient, method of proximity payment.”
This week, Google said that it would combine various payment products, including Google Wallet and Android Pay, under a single name called Google Pay.