In-app wallets go mainstream in the UK as cost-of-living drives adoption

By Gloria Methri

As the UK faces yet another summer shadowed by rising prices and a cost-of-living crunch, new research from Mangopay reveals that in-app wallets are fast becoming a go-to financial tool for British consumers.

According to the study, based on a survey of 1,000 UK adults and 5,000 across Europe, in-app wallets have emerged as the second most popular payment method in the UK, trailing only behind debit and credit cards. One in four Brits (25%) who use these wallets are tapping into them as often as three times a week.

The research comes as 87% of UK adults rank the cost of living among the nation’s top concerns, according to the Office for National Statistics (ONS). In this climate, in-app wallets are moving beyond convenience—they’re becoming an essential strategy for spending smarter and stretching every pound.

A New Era of Earning While Spending

More than just a payment method, in-app wallets are doubling as income generators and budgeting aids.

• 44% of users report earning money through digital platforms via their wallets, a figure that surges to 67% among 16–24-year-olds.
• 26% collect loyalty points or rewards, while 41% prefer receiving refunds directly into their in-app wallets rather than their bank accounts.

This growing functionality is leading to widespread use across daily transactions and larger purchases alike, from groceries and car rentals to flights and accommodation.

With inflation squeezing discretionary income, features that help consumers save are in high demand.

• Loyalty rewards top the wishlist, with 44% of users saying such perks would improve their in-app wallet experience.
• 14% want budgeting tools, including spending trackers and financial planning features.

When choosing which platforms to spend on, consumers are increasingly driven by competitive prices (45%), transparent pricing (35%), and clear return and refund policies (35%). Younger users, particularly those aged 16–24, are also swayed by free shipping and exclusive deals (44%), while 55% of 25–34-year-olds cite cashback as their top motivator.

The research also identifies notable regional differences across Europe:

• In Spain and Italy, faster refunds are the most critical feature, valued by 46% and 43% of users, respectively.
• In France, competitive pricing leads at 53%, though 42% also appreciate loyalty schemes.
• In Germany, practical incentives like free shipping (51%), cashback (49%), and discounts on future purchases (40%) dominate user preferences.

Despite their benefits, in-app wallets still face a trust gap among older UK consumers.

• While 40% of Gen Z (16–24-year-olds) are active users, adoption drops sharply to 17% in the 45–54 age group.
• Privacy and data security remain significant barriers, with 46% of UK adults citing concerns as a reason for not using digital wallets. Among over-55s, this figure climbs to 48%, compared to 33% among younger users.

Alex Taylor, UK Managing Director at Mangopay, said, “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 are 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.”