In a feedback statement issued on Wednesday, they said that in 2023 around a fifth (20%) of card users used a digital wallet for more than 50% of their card transactions.
However, regulators said they had also heard concerns, including improvements being needed to enable competition among digital wallet providers and allowing new players to enter the market, bolstering innovation and giving consumers more choice.
The proportion of card transactions using a digital wallet jumped from 8% in 2019 to 29% in 2023, according to the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR).
There were also worries about how digital wallets might affect the financial system’s resilience, because operational failures could temporarily prevent people from making payments, both online and in-store.
“These digital wallets allow users to make payments from a payment card, but do not hold funds themselves.
