Mobile Wallet Market By Mode Of Payment (Remote Payment, And Near-Field Communication Payment), By Application (M-Commerce, Mobile Ticketing, Mobile Coupon, and Others), And Region - Global Forecast To 2028

The global mobile wallet market is expected to value at more than US$ 0.5 Bn in 2019 and is expected to register a CAGR of 16.1%. The global mobile wallet market is segmented on the basis of mode of payment, application, and region.

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Global Mobile Wallet Market: Introduction

Mobile wallet is stored payment card information through which consumers can send and receive money on their mobile device. The mobile wallet provides transaction facilities at affordable prices and enables consumers to manage their accounts easily. In addition, there are so many advantages of using mobile wallets such as simple to load money, split bill facility, ensures timely payments, and quick transfer of funds. It is an E-commerce method which is intended to use with mobile devices due to their convenience and easy access.

Global Mobile Wallet Market: Dynamics

Increasing consumer preference for cashless payments and online transactions, shifting trend towards digitalization, and increasing initiatives by governments for development of smart cities in various countries are factors projected to drive growth of the global market. Increasing focus of major players towards rapid developments in the information technology sector has resulted in development of more secure remote payment services, solutions, options, and apps, and are factors projected to drive growth of global mobile wallet market in the next few years. Additionally, rapid urbanization, coupled with rising per capita income of individuals in developing and developed economies are projected to drive growth of the global market in the upcoming years.

Increasing popularity and preference for E-commerce websites as various products are offered through this channel at a more economic or reasonable price is expected to have a positive impact on growth of the target market.

However, high cost associated with mobile wallet technology, coupled with growing concerns regarding data security or data breach are among some of the immediate concerns, which could act as restraints for market growth. In addition, recent reports about incidences related to security breaches and trespassing in certain countries could result in reluctance of some potential customers in adopting these services. Lack of regulatory standards to stop data breaches in order to enable more streamlined transactions could restrain market growth to a certain extent.

E-payments help overcome complicated and extremely costly process of physically collecting cash payments for a product purchased or sold online. According to a report published by the World Bank, formal banking reaches about 40% of the population on average in emerging markets, as compared to 90% penetration rate for smartphones offering payment options via mobiles (m-payments). This allows easy access to products available in the market and is beneficial to both, consumers and merchants, who would have previously been unable to engage in E-commerce and would not qualify for such services.

Increasing focus on mergers and acquisitions by prominent players in order to add innovative platforms to existing platforms, with a view to expand offerings, strengthen market presence, and drive revenues are among other trends currently ongoing in the market.

Global Mobile Wallet Market Analysis, by Mode of Payment:

Among the mode of payment segments, the remote payment segment is expected to account for major revenue share and is expected to maintain its dominance over the forecast period. The near-field communication payment segment is expected to register CAGR of over 16.2% over the forecast period. Increasing demand for near-field communication technology for making payments using compatible devices such as smartphones to other payment terminals, with improved proximity range is expected to drive growth of the segment.

Global Mobile Wallet Market Analysis, by Application:

The M-Commerce segment is expected to register CAGR of over 16.3%, owing to growing adoption of smart phones globally. In addition, implementation of multi-channel strategies by merchants owing to increasing competition from Internet vendors is influencing growth of this market.

Global Mobile Wallet Market Analysis, by Region:

The Asia Pacific mobile wallet market is estimated to account for major revenue share and is projected to continue its dominance in the next few years. The rising number of E-commerce platforms including Flipkart and Alibaba, coupled with increasing disposable income of individuals are projected to drive growth of the mobile wallet market in the Asia Pacific. In addition, technological advancements in connectivity infrastructure is projected to drive growth of the global market in the region.

The North America mobile wallet market is projected to register moderate growth rate in the next 10 years. Changing customer preferences are driving financial & commercial establishments to adopt various mobile banking solutions, and is projected to drive growth of the North America market in the coming years. In addition, mobile wallets introduced by various retail players such as Starbucks and Dunkin Donuts, to gain customer loyalty in the region is projected to support growth of the target market in the region. For instance, Starbucks Mobile Order and Pay for iOS or Android facilitates payment at checkout.

Certain recent developments in the global market include:

• In February 2019, American Express and Bill.com entered into a partnership for a vendor pay service, which allows streamlined bill payment on corporate or virtual cards
• In May 2019, the company signed an agreement to acquire Resy Network, Inc., which provides digital restaurant reservation booking and management platform for accessing travel and lodging, airport lounge, exclusive events, and dining access and experiences to card members
• In April 2018, American Express launched Amex Pay mobile payment service in India. This service enables American Express card users to make QR code-based and contactless payments through Amex mobile app

Global Mobile Wallet Market Segmentation:

Segmentation, by Mode of Payment:

• Remote Payment
• Near-field Communication Payment (NFC)

Segmentation, by Application:

• M–commerce
• Mobile Ticketing
• Mobile Coupon
• Mobile Transfer
• Micropayments

Segmentation, by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa