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The e-wallet market size is projected to reach a value of USD 140.6 billion, at a CAGR of 21.49% between 2023 and 2028. The market's expansion hinges on several key factors, including the increasing volume of online transactions, the growing prevalence of wireless networks, and the escalating demand for compliance with regulatory requirements. These factors collectively contribute to the market's growth trajectory, indicating a shift towards digital and wireless solutions across industries. As online transactions and digital payments become more commonplace and wireless networks more pervasive, the need for compliance with regulations has also intensified. This confluence of factors highlights the market's evolution towards more technologically advanced, secure, and compliant solutions, reflecting a broader trend toward digital transformation and connectivity across global business landscapes.
The market is driven by a shift from cash transactions to digital payments, including credit/debit cards, bank accounts, and mobile wallets. It facilitates mobile recharges, movie/travel bookings, and money transfers, offering convenience and security. Despite benefits, concerns like data breaches and identity theft exist. E-Wallets cater to rural or less-developed areas, promoting financial inclusion. Leading platforms like Alipay offer NFC technology for seamless transactions. The market's growth is evident in its ability to replace physical cash with digital transactions, leveraging remote technology for user convenience and security.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share growth by the proximity segment will be significant during the forecast period. Proximity-based e-wallets are widely used across a variety of sectors, such as retail, transportation, and hospitality, as they provide greater convenience by allowing contactless payments via smartphones, speed, and security than conventional payment methods.
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The proximity segment was valued at USD 33.40 billion in 2018. The proximity technology segment accounted for the majority of market share in the global e-wallet market in 2023. Proximity technology is gaining momentum in the global e-wallet market as it can support contactless transactions via Near Field Communication (NFC) and other wireless technologies. With the help of this technology, customers can shop quickly and securely by simply pointing or tapping a wearable or mobile device at a payment terminal. Such factors will increase the market growth during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for contactless payments is currently increasing along with e-commerce, and mobile payments are becoming more widely used in emerging economies. In the regional market, innovation and security are also anticipated to be boosted by the combination of blockchain technology and artificial intelligence. As a result, the APAC e-wallet market is predicted to grow significantly during the forecast period. Moreover, several countries in the region are promoting various platforms that facilitate online payments. For instance, in July 2021, India launched its BHIM Unified Payments Interface (UPI) in Bhutan, allowing users to transfer or accept money throughout the continent using their smartphones.
Our researchers used 2023 as the base year to analyze the data, focusing on key drivers, trends, and challenges. A comprehensive analysis of these drivers will enable companies to fine-tune their marketing strategies and gain a competitive edge.
The rising number of online transactions is the key factor driving the growth of the market share. One of the key factors propelling the expansion of the global e-wallet market is the rise in online transactions. The number of people using the Internet worldwide increased from 16% in 2005 to over 59% in 2021, according to the World Bank. Online transactions, such as e-commerce, bill payments, and peer-to-peer transfers, have indeed risen in tandem with the increase in internet usage. This trend is further fueled by the adoption of mobile wallets, advancements in remote technology, and the use of NFC technology. However, concerns about data breaches highlight the importance of ensuring the security of digital transactions.
For instance, according to the Press Information Bureau of India, there were 91.92 billion digital payment transactions in India in December 2020-21, up from 45.72 billion in 2019-20. Similarly, the U.S. Department of Commerce reports that e-commerce sales in the country increased by 44% in 2020, totaling USD 861.12 billion. The demand for convenient and secure payment methods like e-wallets is anticipated to increase as online transactions continue to increase, fueling the expansion of the global e-wallet market during the forecast period.
Integration of advanced technologies such as artificial intelligence, blockchain, and biometrics is the primary trend in the market growth. The proximity technology segment accounted for most of the market share in the global e-wallet market in 2022. Proximity technology is gaining momentum in the global e-wallet market as it can support contactless transactions via Near Field Communication (NFC) and other wireless technologies. With the help of this technology, customers can shop quickly and securely by simply pointing or tapping a wearable or mobile device at a payment terminal.
Real-time analytics, automated budgeting tools, and fresh services and features, including personalized financial management, are also made possible by these technologies and added to e-wallets. The adoption of cutting-edge technologies is anticipated to spur innovation and market differentiation in the e-wallet sector, allowing service providers to provide their clients with more comprehensive and value-added services. Hence, the integration of advanced technologies is expected to propel the growth of the market size in focus during the forecast period.
High infrastructure and implementation costs are a major challenge to the growth of the global e-wallet market. The high infrastructure and running costs required to set up and maintain an e-wallet service are some of the major obstacles in the market. Electronic wallets require a strong and secure infrastructure to support transactions and store sensitive user data. However, such infrastructure can be expensive to set up and maintain.
Additionally, implementing e-wallets often requires integration with various financial institutions and payment networks, which can be difficult and costly. Smaller players may find it difficult to enter the market due to these high costs, especially in areas with poor infrastructure and resources. Additionally, e-wallet providers may face difficulties due to ongoing costs that must be incurred to maintain competitiveness and meet changing consumer demands. These challenges are expected to have the potential to hinder the growth of the market in focus during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Mastercard Inc.: The company offers e-wallet namely, Paytm Wallet. Also, the company provides online services such as hotel booking, top-ups, data processing, games, mobile content, and bill payments.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is evolving with mobile recharge options and is increasingly adopted by retailers and businesses. It facilitates retail sales and is integral to the E-Commerce industry. Key players like Apple Pay, Samsung Pay, and Square drive the market, enabling Internet shopping and person-to-person money transfers. The use of QR Code and text-based services enhances convenience. Security features include biometric authentication methods like fingerprint recognition, facial recognition, and iris scanning. In-app payments and collaboration with e-commerce platforms and digital content providers further expand its reach.
It caters to diverse needs, including text-based service and digital-only transactions, revolutionizing banking and even vending machines. Accepted widely alongside credit cards, it adheres to CPMI and Red Book Statistics for security. Unauthorized access is countered by technologies like DFNS, Delegated Signing, and WebAuthn protocol, bolstering trust. PIN codes add an extra layer of security. The E-wallet landscape includes giants like WeChat Pay, reshaping the E-commerce sector. It seamlessly integrates mobile wallet, credit/debit card, and bank account functionalities, benefitting both consumers and businesses.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.49% |
Market growth 2024-2028 |
USD 140.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.45 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
China, US, India, UK, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACI Worldwide Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., American Express Co., Apple Inc., AT and T Inc., Aurus Inc., Bharti Airtel Ltd., Block Inc., Mastercard Inc., One97 Communications Ltd., PayPal Holdings Inc., Paysafe Ltd., Samsung Electronics Co. Ltd., Stripe Inc., Tencent Holdings Ltd., Visa Inc., WEX Inc., and Worldline SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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