3 Mobile Banking Trends that Promise to Transform the Retail Sector in 2025

Mobile banking has soared in popularity over the last few years, with more than 53% of UK adults now using a mobile banking app in their day-to-day lives.

In the same period of digital expansion, mobile-based retail touchpoints have proliferated, growing to more than 150 annual touchpoints per customer per year and surpassing leading ecommerce competitors.

As we embrace mobile banking trends, payment automation and the rise of digital wallets, what does this mean for the future of the retail sector?

This deep dive into mobile banking’s impact on the retail industry will look at some of the most popular payment trends on the market and reveal how they will transform retail success moving forward.

The Rise Of BNPL: Navigating Mobile Credit Innovation

Instalment credit options continue to revolutionise how we complete retail transactions in a mobile-first era.

Rather than using traditional forms of credit such as a credit card or an interest-heavy finance payment, the rise of buy-now-pay-later as a digital payment trend provides customers with more flexibility at the checkout.

Using mobile payment apps such as Paypal and Klarna, highstreet, and ecommerce, shoppers are now able to simply buy now and pay later. 

The retail sector can leverage BNPL to increase conversions on more expensive purchases. As an attractive option for customers looking to delay or spread the cost of a purchase, retailers have seen their average basket size increase in response.

BNPL has gained traction amongst physical and digital retailers and is expected to grow by 25% year-on-year until 2030.

Beauty retailer Charlotte Tilbury is just one brand embracing BNPL on their ecommerce site and in-store via click-and-collect. 

As a high-end makeup brand, CT revealed that while their target demographic sits between 18-30, less than 6.5% of their overall buyers are aged 18-24.

Introducing BNPL to their checkout has opened up their expensive pricing to a more significant target group. Working with Klarna’s open banking services, CT encourages customers to pay in three instalments or in full in 30 days to expand their customer base and drive long-term loyalty.  

Introducing Account-To-Account Payments

Account-to-account transactions, otherwise known as A2A payments, refer to the process of completing a transaction directly between two bank accounts without a network intermediary such as Mastercard or Visa.

As the retail sector evolves, so does the way in which we pay for goods and services. As more brick-and-mortar brands introduce loyalty schemes and app integrations, the need for payment intermediaries becomes increasingly redundant.

More than half of customers signed up for a payment-driven loyalty program are willing to pay for retail services via A2A transactions.

For retailers, this is a game changer. If more customers pay fees using an account-to-account method, card transaction fees are reduced, and payments arrive instantly in the retailer account.

While this form of payment is still in its infant stages in the retail sector, the rise of brand-based loyalty apps could speed up its integration into the industry.

Defining The Future Of Retail With Digital Wallets

Near-field communication innovation continues to drive a mobile-first banking era. Not only can customers now access their funds via banking apps, but they can also add their cards to a digital version of a traditional wallet for smoother payment accessibility at checkout.

Fueled by the proliferation of Apple Pay and Google Pay, over a third of UK retail customers now use a mobile wallet on the high street.

For retailers, this rapid adoption of device-led payment methods could mean that cash quickly becomes redundant in a brick-and-mortar store. 

For those with modern POS systems in place, digital wallet payments could transform customer loyalty programs. With the ability to leverage past-purchase data from an NFC transaction, POS systems can automatically personalise loyalty rewards and in-store offers for each individual customer for an enhanced brand experience.

What’s Next For A Mobile-First Retail Sector?

It’s no secret that the retail sector is rapidly evolving in line with mobile banking trends.

As we adapt to a cashless high street, digital wallets will continue to dominate retail payments. However, as loyalty-driven brand apps connect phygital retail stores, A2A transactions and the introduction of new BNPL credit could redefine how customers pay for services provided by retail giants.