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The Global Mobile Payments Market Size is estimated to grow by USD 75,412.89 million between 2022 and 2027 accelerating at a CAGR of 20.49%.
This mobile payments market report extensively covers market segmentation by location (remote payment and proximity payment), type (money transfers, merchandise purchases, bill payments, and others), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The growth of the market depends on several factors, including the rising number of online transactions, the rising deployment in emerging economies, and the advantages of mobile payments.
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Our researchers analyzed the data with 2022 as the base year and 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 a major mobile payments market driver. Online transactions are becoming more popular among consumers because of their ease, speed, and convenience. Mobile devices, especially smartphones, are widely used for online transactions. Digital wallets are the most preferred mode of payment because of their easy registration, robust payment processing capabilities, and user-friendly dashboard.
Mobile payments are gaining popularity due to the increasing use of mobile devices and wearables. Retailers are adopting NFC POS terminals to facilitate mobile payments and enhance their marketing efforts. This streamlined process helps generate more revenue for retailers. The adoption of contactless EMV cards will likely encourage the implementation of NFC POS terminals. Faster checkouts, effective information management, and secure payments contribute to the growth of the global mobile payments market.
The growing emergence of mobile apps for shopping transactions is a primary mobile payments market trend. In recent times, online shopping transactions have risen higher in mobile apps than on websites due to the increasing penetration of smart devices in the market. Therefore, to capture these opportunities, vendors are trying to switch from websites to app-only services. Mobile payments in countries such as India have been growing faster as more consumers and businesses adopted mobile payments during the pandemic. In addition, compared with developed countries, switching to app-only services can turn into a major failure for e-commerce providers, as many developing countries such as Indonesia and Thailand still face problems with Internet connectivity, which restricts customers from making online purchases. Some new launches of mobile payment applications are listed below:
These factors are highly impacting the market.
Privacy and security concerns are major challenges faced by the mobile payments market. Payment service providers use online cookies to gather personal data and information on customers so that they can customize their advertising messages to target key audiences. The indiscriminate use of cookies can infringe on customer privacy, while location-based online services have also raised privacy concerns because these can reveal the geographical location of the customer. In general, online retailers may collect a large volume of data, including details such as addresses, credit card information, passwords, and other credentials. Many companies also collect a large volume of data through cookies and other methods to determine customer demographics and ensure better target advertising for future transactions. Confidential information, including those related to consumer addresses and credit card information, poses risks because m-commerce involves monetary transitions in real time. Moreover, data theft can lead to financial losses for customers. These factors can adversely affect the online experience of customers and hinder the potential growth of the market during the forecast period.
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The market share growth by the remote payment segment will be significant during the forecast period. The introduction of mobile payment gateways, such as Apple Inc. has simplified the process of paying bills.
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The remote payment segment was valued at USD 14,245.83 million in 2017 and continued to grow until 2021. Customers no longer need to carry credit or debit cards. Several retail outlets make use of POS terminals for payment of the purchases made by consumers. A POS terminal is a portable device that can accept and process payments over Wi-Fi and print out receipts. One of the main reasons for big players to offer near-field communication (NFC)-based mobile payment options is the high-security features that prevent the consumer and retailer from accessing card information or security code illegitimately. Such, benefits are the reasons behind the segment growth during the forecast period.
Mobile payment gateways like Apple Inc. have simplified bill payments without the need for credit or debit cards. Retail outlets use POS terminals to process payments over Wi-Fi and print receipts. The high security features of NFC-based mobile payments prevent access to card information or security codes by unauthorized parties. Users save financial data on their phones and make transactions by bringing their phone closer to the vendor's contactless payment-capable POS system, then authenticate using biometrics or passwords.
The increased use of mobile devices and wearables has popularized mobile payments, and many retailers adopt NFC POS terminals to streamline operations and boost revenue. Contactless EMV cards will encourage more use of NFC POS terminals. Faster checkouts, the adoption of EMV cards, effective information management, and secure payments are driving factors in the growth of the global mobile payments market.
APAC is estimated to contribute 43% 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.
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The APAC market is expected to witness high growth, mainly due to rapid urbanization and the increasing penetration of internet services. The growing adoption of various mobile payment methods, such as wallets and payment gateways, is propelling the growth of the regional market. Semi-closed wallets do not have the option of withdrawal and redemption. They are linked to bank accounts and involve transactions through payment gateways. This helps in the growth of the market. Additionally, the penetration of mobile phones is higher in developed countries, when compared with developing countries, which is accelerating market growth.
The governments of various countries in the region have been taking initiatives to promote mobile payments. For instance, the Government of India has been undertaking several measures to promote and encourage mobile payments in the country. As a part of the Digital India campaign, the government is aiming to create a digitally empowered economy. Thus, as per the aforementioned factors, the regional market will grow significantly during the forecast period.
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The region was adversely affected by the outbreak of COVID-19 in the first half of 2020. However, during the lockdown phase, people preferred mobile payments instead of cash payments to prevent the risk of infection through cash payments. Many e-commerce companies accepted only mobile payments instead of paper currency to avoid physical contact. These factors will influence market growth in the region during the forecast period. The restrictions on physical interaction and government guidelines are expected to lead to changes in people's behavior. Hence, the regional mobile payments market is expected to grow significantly during the forecast period.
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 Mobile Payments Market. One of the major vendor in the market include:
Mahindra and Mahindra Ltd. - The company operates under multiple segments including the automotive sector, and financial services among others with a high focus on the automotive sector. The company under this segment?comprises the sale of automobiles, spares, mobility solutions, construction equipment, and others. The company's key offerings include mobile payments.
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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research 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.
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Mobile Payments Market Scope |
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Report Coverage |
Details |
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Page number |
158 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.49% |
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Market growth 2023-2027 |
USD 75,412.89 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
19.07 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 43% |
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Key countries |
US, China, India, South Korea, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., American Express Co., Ant Technology Group Co. Ltd., Apple Inc., JPMorgan Chase and Co., Mahindra and Mahindra Ltd., Mastercard Inc., MoneyGram International Inc., NASPERS Ltd., One97 Communications Ltd., PayPal Holdings Inc., Samsung Electronics Co. Ltd., Tencent Holdings Ltd., Visa Inc., Vodafone Group Plc, and Alibaba Group Holding Ltd |
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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 |
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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 Location
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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