The number of British smartphone owners who have used their phones to make payments increased significantly over the past year, according to business advisory firm Deloitte’s latest Mobile Consumer Report.

The fifth annual report analysed the mobile usage habits of over 4,000 UK consumers as part of a global survey of 49,000.

According to Deloitte’s research, there has been a significant increase in the number of UK adults who have made mobile payments in the year to May 2015, rising from 3 per cent to 13 per cent of respondents.

However, just 1 per cent of respondents said they use their phones to make payments via their mobile phone on a daily basis.

The most common reason that UK adults gave for not using their phone to make a payment was one of security – cited by 42 per cent of respondents. This was followed by “I don’t see the benefits from using this” (35 per cent), and users lacking the necessary feature or app on their phone (22 per cent).

Paul Lee, head of technology, media and telecommunications research at Deloitte, said: “As technology companies continue to launch and market their mobile-payment systems, smartphone users will increasingly accept it as a method of payment.

“Within the next year, we would expect around 10% of smartphone owners to regularly make mobile payments. Early adopters may choose to leave home without the need to carry a wallet or purse.

“However, for the mainstream consumer, it will be many years before credit cards are dispensed of entirely; cash’s anonymity may well mean it remains in circulation for generations.”