Enjoy complimentary customisation on priority with our Enterprise License!
The e-wallet market size is projected to reach a value of USD 163.43 billion with a CAGR of 26.41% between 2022 and 2027. The growth of the market depends on several factors, including the rising number of online transactions, the rise in the use of wireless networks, and the surge in compliance requirements.This e-wallet market analysis report extensively covers market segmentation by technology (proximity and remote), application (retail and e-commerce, media and entertainment, hospitality and transportation, telecommunication, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The innovative features and user interfaces are notably driving the market growth, although factors such as the high infrastructure and implementation costs may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising number of online transactions is the key factor driving the growth of the global e wallet 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 risen in tandem with this rise in internet usage.
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 USD861.12 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 global e-wallet 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 e wallet 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 one of the major obstacles in the global e-wallet 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 e-wallet 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 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 growth strategies.
Global E-Wallet Market Customer Landscape
Vendors 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.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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.
Get a glance at the market contribution of various segments View the PDF Sample
The proximity segment was valued at USD 31.35 billion in 2017 and continued to grow by 2021. The proximity technology segment accounted for the majority of 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. Such factors will increase the market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 39% 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 e-wallet 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.
The region was negatively affected by the outbreak of COVID-19 in the first half of 2020. However, during the lockdown phase, people preferred purchasing items from e-commerce websites, which acted as a catalyst for e-commerce payment, henceforth propelling the adoption of e-wallets in the region. Many e-commerce companies, such as Amazon and Alibaba were accepting only digital payments instead of currency notes to avoid physical contact. These factors influenced the regional market growth from 2020. Such situations and guidelines introduced behavioral changes among people, as they started preferring online shopping rather than going to brick-and-mortar shops. Paytm and GooglePay, AmazonPay accounted to be the top 3 e-wallets in India in 2022. Hence, the e-wallet market in the region is expected to witness significant growth during the forecast period.
The e-wallet market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global e-wallet market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
E-Wallet Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.41% |
Market growth 2023-2027 |
USD 163.43 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.41 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, India, UK, and Spain |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.