I’m thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain has positioned him as a thought leader in the fintech space. With a keen interest in how emerging technologies shape industries, Dominic offers unique insights into the rapid evolution of digital payments. Today, we’ll explore the seismic shift toward mobile wallets in the UK, the decline of traditional payment methods like cash and cheques, the generational dynamics of tech adoption, and what the future holds for how we manage and spend our money.
How have mobile wallets become the go-to payment method for over half of UK adults in 2024, and what’s fueling this rapid growth?
The surge to 57% of UK adults using mobile wallets in 2024, up from 42% just a year prior, is really about convenience and trust in technology. Mobile wallets, which are essentially apps on your smartphone, make payments seamless—whether you’re tapping to pay at a store or splitting a bill with friends. The integration of secure features like biometric authentication has also boosted confidence. Plus, the infrastructure is there; almost every retailer now accepts contactless payments, and smartphones are ubiquitous. This growth is fueled by a cultural shift toward digital-first solutions, accelerated by events like the pandemic, which pushed people to avoid physical cash.
What’s behind the stark contrast in adoption rates, with 88% of 16- to 24-year-olds using mobile wallets compared to slower uptake among older generations?
Younger folks, especially the 16- to 24-year-old crowd, are digital natives. They’ve grown up with smartphones and see mobile wallets as a natural extension of their lifestyle—fast, integrated with social apps, and often tied to rewards or gamified features. For them, cash feels outdated. Older generations, while catching up, often face a learning curve or skepticism about security. However, necessity and exposure, especially during the pandemic when contactless became a safer option, have driven even those aged 65 and over to adopt at a surprising rate, with a 14% increase in registrations last year.
What does the shift to mobile banking overtaking desktop banking tell us about changing consumer behavior in the UK?
It’s a clear signal that convenience reigns supreme. Three-quarters of adults using smartphone banking apps in 2024 shows how much we value on-the-go access. People want to check balances, transfer money, or pay bills from anywhere—whether they’re on a bus or in a coffee shop. Desktop banking, while still useful for complex tasks, can’t match that immediacy. This shift reflects a broader trend: our lives are increasingly mobile, and financial services are adapting to fit into the palm of our hands.
With contactless payments now at 39% of all transactions, up from just 3% in 2015, what’s driving this massive change?
Contactless payments have exploded because they’re quick and frictionless. Back in 2015, the tech was new, and acceptance was limited. Now, nearly every terminal supports it, and limits on transaction amounts have risen, making it practical for bigger purchases. The pandemic was a huge catalyst—people were advised to avoid touching cash or keypads, so tapping a card or phone became the norm. It’s also a behavioral loop: the more we use it, the more comfortable we get, and the more businesses invest in the tech.
Why are mobile wallets starting to edge out contactless cards for many users?
Mobile wallets are pulling ahead because they offer more than just payment—they’re a full ecosystem. With a smartphone, you can store multiple cards, track spending, earn rewards, and even integrate with other apps for things like transit or loyalty programs. It’s one device replacing a bulky wallet. Contactless cards are still handy, but they lack that versatility. As users get hooked on the added features of mobile wallets, they’re naturally making the switch.
As cash payments are projected to fall to just 4% and cheques to 0.1% in the coming years, what challenges do you see for those who still depend on these methods?
This decline is a double-edged sword. For the 1.2 million people still relying on cash for daily spending, especially vulnerable groups like the elderly or those without access to digital tools, the shift can be isolating. They might struggle to pay for essentials if businesses go cashless. Cheques, though niche, are still used for specific transactions like large payments or by older individuals unfamiliar with online banking. The challenge is ensuring inclusivity—banks and businesses need to provide alternatives or education to bridge the gap so no one is left behind.
What’s your forecast for the future of digital payments in the UK over the next decade?
I think we’re heading toward an almost entirely digital payment landscape within the next ten years. Contactless is already projected to hit 43% of transactions by 2034, and mobile wallets will likely dominate even further as they integrate more AI-driven features like personalized budgeting or predictive spending alerts. Blockchain could also play a role, offering secure, decentralized payment options. However, the key will be balancing innovation with accessibility—ensuring that as cash fades, we don’t exclude those who aren’t ready for a fully digital world. I expect fintechs to keep pushing boundaries, with things like buy now pay later services growing beyond the 25% adoption we see today.