The global Mobile Payments Market is estimated to surpass the $17.7 billion mark by 2027 growing at an estimated CAGR of more than 24.9% during the forecast period 2022 to 2027. Increased use of technology in financial transaction and the rise in various e-commerce platforms are expected to accelerate the mobile payment market during the forecast period. In 2019, according to a report given by the Government of India, India has over 16 mobile wallet or e-wallet companies out of which 14 are Indian based mobile wallet companies. Digital payments in India are witnessing thriving growth with a compound annual growth rate of 12.7% in the number of non-cash transactions. Similarly, China mobile wallets are growing at a rate of 22% with a total transaction volume of $41.1 trillion in 2019. Increasing adoption of the non-cash transaction will likely to create the demand for the Mobile payment market.
The report: “Mobile Payments Market- Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Mobile Payments Market.
The increasing omnipresence of mobile phones is a driving factor in increasing the number of users of mobile money and changing the dynamics of digital finance solutions.
Efficiency in money exchange is one of the major determinants of mobile money technology development. Increasing the efficiency of mobile money transactions can result in an increase in overall expenditure which can encourage companies to work towards the development of this technology.
The use of transaction modes such as NFC / smart cards has speeded up the transaction process. In addition, the development of e-commerce websites has led to an increase in the number of online transactions that can be considered an attraction for the mobile money market.
During the forecast period, the Proximity Payments segment is expected to grow at a CAGR of 35.7%. Mobile phones and POS devices are used to make the proximity payments. A number of companies currently offer applications allowing proximity payments. It is further referred to as in-store payments with respect to payment through a merchant's POS terminal in the case of a retail store or in-location payments. For short distances and work, proximity payments are specifically enabled when both the payer and the payee are present in the same place. This payment system uses either barcodes or contactless interfaces to initiate the mobile money transaction. This is done through Near-field communication (NFC)-based technology present on an NFC-enabled phone, which has comprehensive details about the mobile wallet placed in the cloud or debit/credit card. This payee information is stored on the device in the POS terminal which is read by the corresponding NFC reader. Proximity payments differ markedly from remote payments, as it involves the presence of payment card details from one's own bank account and does not require any relation with a payment processor to facilitate the transaction. The increasing adoption by brick- and mortar-based companies of mobile payment technologies further drives demand for proximity payments.
In terms of industry , the mobile payments market is mainly bifurcated into travel and ticketing, banking, and e-commerce services. Further analysis of each segment indicates banking and travel and hospitality to be the fastest-growing application segment for the mobile payments market, which are projected to grow at a CAGR of 30.2% and 34.8%. Companies like MakeMyTrip, Yatra, Ibibo, Cleartrip (for airlines and hotels), redBus (for buses) are examples of online travel booking companies in India, which are fuelling the mobile payments market, by facilitating booking only through online platforms. A study by India Brand Equity Foundation (IBEF) found that 81% of existing digital payment users in India favour the digital and mobile mediums for banking over other non-cash payment procedures such as demand drafts or cheques.
North America, which has displayed affinity over the years in adopting newer technologies, is the most lucrative region for the mobile payments market, generating a global demand share of 34.3% in 2020. With several innovative key market players located in North America such as PayPal Holdings, Inc. and Microsoft Corporation, this region is leading the innovative front with the development of novel technologies such as contactless payments and near-field communication. A high rate of internet penetration, growth of e-commerce and micropayment options has contributed to the popularity of the mobile payments market in North America.
Mobile point of sale has really taken advantage of the smartphone's ability to accept payment on the spot. mPOS is the technology that frees all businesses from their brick-and-mortar and in-store transactions. mPOS device limits liability because transactions are encrypted and card information is not stored on the mPOS device, which minimises the risk of security breaches and makes it easier and quicker to comply with regulations. Biometrics such as fingerprint and facial recognition can also be used with mPOS to confirm customer identities during payment, adding another level of security to mobile money payments. With mPOS, staff can see past transactions, online browsing history, loyalty rewards, and other things that help staff understand the customer's need. These features have not only added to customer satisfaction but also improvement in staff performance.
The COVID-19 pandemic has had a significant impact on the mobile money market, as consumers and businesses are forced to change their buying habits. There has been an incredible spike in the adoption of mobile wallets, as contactless payments have become vital for purchases. Avoiding cash and card transactions to keep COVID-19 from spreading has prompted many subscribers to try out mobile wallets. Since the COVID-19 crisis complicates every day, consumers become accustomed to digital payments, making mobile money important for each transaction.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Mobile Payments Market. Apple, PayPal, Samsung, JP Morgan Chase, Amazon, Tencent, Google, Ant Financial, One97 Communications Limited, Vodafone, Skrill, American Express, Sprint Corporation, Well Fargo, Mastercard, Visa, First Data, and AT&T are considered to be the key players of the Mobile Payments Market.
In November 2019, Google, a digital payments provider, launched Google Pay for business apps, targeting small and medium-sized businesses, helping them transfer each rupee earned by the merchant directly into their Unified Payment Interface (UPI)-linked bank account.
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Report Coverage
The report: “Mobile Payments Market- Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Mobile Payments Market.
- By Type of Payments: Remote Payments, Proximity Payments
- By Transaction Mode: NFC/Smart card, Direct mobile billing, Mobile web/WAP payments, SMS, STK/USSD, Mobile apps, IVRS, QR codes, Others (Wi-Fi, Bluetooth)
- By Payment Nature: Person to Person (P2P), Person to Business (P2B), Business to Person (B2P), Business to Business (B2B)
- By Application: Money transfers, Bill Payments, Airtime Transfer and Top-Ups, Travel and Ticketing, Merchandise and Coupons
- By Industry Vertical: BFSI, Telecom and IT, Media and entertainment, Healthcare, Retail, Travel and hospitality, Transportation and logistics, energy and utilities, Others
- By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (the Middle East and Africa).
Key Takeaways
The increasing omnipresence of mobile phones is a driving factor in increasing the number of users of mobile money and changing the dynamics of digital finance solutions.
Efficiency in money exchange is one of the major determinants of mobile money technology development. Increasing the efficiency of mobile money transactions can result in an increase in overall expenditure which can encourage companies to work towards the development of this technology.
The use of transaction modes such as NFC / smart cards has speeded up the transaction process. In addition, the development of e-commerce websites has led to an increase in the number of online transactions that can be considered an attraction for the mobile money market.
Mobile Payments Market Segment Analysis - By Type of Payments
During the forecast period, the Proximity Payments segment is expected to grow at a CAGR of 35.7%. Mobile phones and POS devices are used to make the proximity payments. A number of companies currently offer applications allowing proximity payments. It is further referred to as in-store payments with respect to payment through a merchant's POS terminal in the case of a retail store or in-location payments. For short distances and work, proximity payments are specifically enabled when both the payer and the payee are present in the same place. This payment system uses either barcodes or contactless interfaces to initiate the mobile money transaction. This is done through Near-field communication (NFC)-based technology present on an NFC-enabled phone, which has comprehensive details about the mobile wallet placed in the cloud or debit/credit card. This payee information is stored on the device in the POS terminal which is read by the corresponding NFC reader. Proximity payments differ markedly from remote payments, as it involves the presence of payment card details from one's own bank account and does not require any relation with a payment processor to facilitate the transaction. The increasing adoption by brick- and mortar-based companies of mobile payment technologies further drives demand for proximity payments.
Mobile Payments Market Segment Analysis - By Industry Vertical
In terms of industry , the mobile payments market is mainly bifurcated into travel and ticketing, banking, and e-commerce services. Further analysis of each segment indicates banking and travel and hospitality to be the fastest-growing application segment for the mobile payments market, which are projected to grow at a CAGR of 30.2% and 34.8%. Companies like MakeMyTrip, Yatra, Ibibo, Cleartrip (for airlines and hotels), redBus (for buses) are examples of online travel booking companies in India, which are fuelling the mobile payments market, by facilitating booking only through online platforms. A study by India Brand Equity Foundation (IBEF) found that 81% of existing digital payment users in India favour the digital and mobile mediums for banking over other non-cash payment procedures such as demand drafts or cheques.
Mobile Payments Market Segment Analysis - By Geography
North America, which has displayed affinity over the years in adopting newer technologies, is the most lucrative region for the mobile payments market, generating a global demand share of 34.3% in 2020. With several innovative key market players located in North America such as PayPal Holdings, Inc. and Microsoft Corporation, this region is leading the innovative front with the development of novel technologies such as contactless payments and near-field communication. A high rate of internet penetration, growth of e-commerce and micropayment options has contributed to the popularity of the mobile payments market in North America.
Mobile Payments Market Drivers
Increased Adoption of Mobile POS
Mobile point of sale has really taken advantage of the smartphone's ability to accept payment on the spot. mPOS is the technology that frees all businesses from their brick-and-mortar and in-store transactions. mPOS device limits liability because transactions are encrypted and card information is not stored on the mPOS device, which minimises the risk of security breaches and makes it easier and quicker to comply with regulations. Biometrics such as fingerprint and facial recognition can also be used with mPOS to confirm customer identities during payment, adding another level of security to mobile money payments. With mPOS, staff can see past transactions, online browsing history, loyalty rewards, and other things that help staff understand the customer's need. These features have not only added to customer satisfaction but also improvement in staff performance.
Shift to Contactless payments due to Covid-19 Pandemic
The COVID-19 pandemic has had a significant impact on the mobile money market, as consumers and businesses are forced to change their buying habits. There has been an incredible spike in the adoption of mobile wallets, as contactless payments have become vital for purchases. Avoiding cash and card transactions to keep COVID-19 from spreading has prompted many subscribers to try out mobile wallets. Since the COVID-19 crisis complicates every day, consumers become accustomed to digital payments, making mobile money important for each transaction.
Mobile Payments Market Challenges
Low Trust in Mobile Payments
Low trust in mobile payments is a major factor which will hamper the market in the forecast period. For instance according to the report given by YourGov, about 43% of the mobile users don’t trust mobile payments and 38% have low confidence in security. Similarly, most of the consumers are reluctant to adapt to mobile payments as contactless payment presents huge unknown risk and fraud like leaked data, hacking and e-wallet vulnerabilities. Moreover less awareness about the benefits of using mobile payments over using cash or credit cards and debit cards for online payment and buying expensive items. All these conditions will restrain the market growth in the forecast period
Mobile Payments Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Mobile Payments Market. Apple, PayPal, Samsung, JP Morgan Chase, Amazon, Tencent, Google, Ant Financial, One97 Communications Limited, Vodafone, Skrill, American Express, Sprint Corporation, Well Fargo, Mastercard, Visa, First Data, and AT&T are considered to be the key players of the Mobile Payments Market.
Acquisitions/Technology Launches/Partnerships
In 2019, Wirecard and Sisal Group signed an agreement to collaborate in the field of contactless payment solutions for the brand SisalPay
In November 2019, Google, a digital payments provider, launched Google Pay for business apps, targeting small and medium-sized businesses, helping them transfer each rupee earned by the merchant directly into their Unified Payment Interface (UPI)-linked bank account.
This product will be delivered within 2 business days.
Table of Contents
1. Executive Summary9. Investment Opportunities - Analysis by Target companies/customers, Capital Investments, ROI, Payback Period and Source of Funds.
2. Global Mobile Payments Market Overview
3. Global Mobile Payment Market Dynamics
4. Mobile Payments Market - Strategic Analysis
5. Mobile Payment Market by Transaction Types
6. Mobile Payments Market by Applications
7. Mobile Payment Market - Geographic Analysis
8. Mobile Payment Market Entropy
10. Company Profiles (Overview, Financials, SWOT Analysis, Developments, Product Portfolio)
11. Appendix
Methodology
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