According to a recent survey conducted by the publisher, the mobile payment technologies market is poised for substantial growth, projected to expand at a notable CAGR of 26.1%. By 2024, the market is expected to reach $19.656 trillion, with forecasts indicating a robust increase to $99.76 trillion by 2031.
The increasing use of sophisticated technologies such as mobile point-of-sale (m-POS) systems, wearable devices, and NFC credit card apps is expected to drive demand for mobile payment solutions in the coming years.
Despite the overall economic slowdown, which slightly reduced the CAGR from 27% to 25.6%, the demand for mobile payment technologies surged as consumers became more cautious about using physical cash.
Smartphones have become indispensable in the expanding global economy, and the internet is now an integral part of many people's lives. This widespread adoption of smartphones with internet connectivity is propelling the mobile payment technologies market forward.
Corporations are heavily investing in mobile payment technologies due to the rapid expansion of the industrial economy. Central banks in many developing countries are encouraging banks to extend infrastructure in rural areas to support safe and secure NFC terminals, presenting significant opportunities for vendors.
Bridging the awareness and technological gap, along with the rising prevalence of smartphones and digital cards in low-income nations, is accelerating the market's growth.
Many retailers remain skeptical about the utility of new mobile application methods and prefer traditional systems. To attain scale and benefit, market players must demonstrate the security features of mobile payment technologies to end-users.
Despite these challenges, analysts believe that sufficient opportunities exist for the worldwide acceptance of mobile wallets.
The Asia-Pacific region holds lucrative opportunities for the expansion of the NFC phone payment market due to its large population and insufficient banking infrastructure. The region's limited access to authorized financial institutions presents enormous prospects for mobile payment technologies.
Retail businesses are at the forefront of adopting mobile payment technologies, significantly influencing the adoption of NFC wallets and other digital payment modes. The Asia-Pacific region is expected to account for more than half of the global mobile payment technologies market. China holds a significant market share, driven by the increasing use of smart appliances.
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Market Benefits and Technological Advancements
In recent years, mobile payment technology has significantly benefited businesses by reducing client acquisition costs, enhancing customer lifetime value, and lowering infrastructure and operating costs. Businesses across various industries have reaped substantial revenue and cost benefits from the introduction of near field communication (NFC) and contactless payment technologies.The increasing use of sophisticated technologies such as mobile point-of-sale (m-POS) systems, wearable devices, and NFC credit card apps is expected to drive demand for mobile payment solutions in the coming years.
Impact of COVID-19 on the Market
The COVID-19 pandemic had a profound impact on the global economy and human health, but it also accelerated the growth of the mobile payment technologies market. The pandemic drastically changed consumer and merchant interactions worldwide, leading to a significant increase in demand for contactless payment systems such as NFC wallets, UPI addresses, and QR codes.Despite the overall economic slowdown, which slightly reduced the CAGR from 27% to 25.6%, the demand for mobile payment technologies surged as consumers became more cautious about using physical cash.
Market Dynamics and Opportunities
Consumers are increasingly using magnetic secure transmission phones to make rapid payments for goods and services at local shops. The convenience offered by these digital payment methods is a major driving factor for the global mobile payment technologies market.Smartphones have become indispensable in the expanding global economy, and the internet is now an integral part of many people's lives. This widespread adoption of smartphones with internet connectivity is propelling the mobile payment technologies market forward.
Corporations are heavily investing in mobile payment technologies due to the rapid expansion of the industrial economy. Central banks in many developing countries are encouraging banks to extend infrastructure in rural areas to support safe and secure NFC terminals, presenting significant opportunities for vendors.
Bridging the awareness and technological gap, along with the rising prevalence of smartphones and digital cards in low-income nations, is accelerating the market's growth.
Challenges to Market Growth
A significant challenge in consumer adoption of NFC digital wallets is the competition among companies to own the client by offering stand-alone solutions. Without partnerships that can engage both consumers and merchants at scale, achieving mainstream market adoption in new regions can be daunting.Many retailers remain skeptical about the utility of new mobile application methods and prefer traditional systems. To attain scale and benefit, market players must demonstrate the security features of mobile payment technologies to end-users.
Despite these challenges, analysts believe that sufficient opportunities exist for the worldwide acceptance of mobile wallets.
Regional Opportunities and Collaborations
In March 2020, the World Health Organization (WHO) advised people worldwide to switch to contactless mobile payment modes to mitigate the spread of COVID-19. This recommendation spurred growth in mobile payment transactions and the development of NFC technologies by emerging market players.The Asia-Pacific region holds lucrative opportunities for the expansion of the NFC phone payment market due to its large population and insufficient banking infrastructure. The region's limited access to authorized financial institutions presents enormous prospects for mobile payment technologies.
Market Segmentation and Performance
Media and entertainment services, particularly video streaming and OTT platforms, have significantly contributed to the growth of the mobile payment technologies market through content subscriptions. Repeated subscriptions for movies and original shows have boosted this segment.Types of Mobile Payment Services
The market is segmented into remote payment and proximity payment. Remote payment, growing at a rate of 23.2%, is the major shareholder. Proximity payment, which includes QR code and NFC payments, is also gaining popularity due to the simplicity of the payment process.End Users of Mobile Payment Technologies
The banking, financial services, and insurance (BFSI) sector is predicted to have rapid growth and a significant revenue share in the global market. Mobile payment technologies have created new opportunities for this sector by reducing transaction times. Online payment platforms and NFC credit card app providers are collaborating with banks to implement their systems.Retail businesses are at the forefront of adopting mobile payment technologies, significantly influencing the adoption of NFC wallets and other digital payment modes. The Asia-Pacific region is expected to account for more than half of the global mobile payment technologies market. China holds a significant market share, driven by the increasing use of smart appliances.
Competition and Key Players
Payment platform companies are employing innovative strategies to attract and retain users, resulting in intense competition in global and regional markets. Rewards and cashbacks are commonly used to increase the frequency of mobile payments and NFC credit card usage. Market players are also developing specialized tools to retain customers at NFC terminals.Recent Developments
- Orange Company is transforming Africa and the Middle East through digital transformation, opening its first Orange Digital Centre in Tunisia in April 2019.
- Visa and Planeta launched new technology in February 2019 to help public transportation operators adopt NFC and contactless payment more easily and at a lower cost, popularizing mobile payment technologies among lower-income groups.
Key Companies Profiled
- Alphabet Inc.
- Microsoft Corporation
- Apple, Inc.
- Boku, Inc.
- Fortumo OÜ
- PayPal, Inc.
- AT&T, Inc.
- Bharti Airtel Limited
- MasterCard International, Inc.
- American Express, Co.
- Visa, Inc.
- Vodafone Group PLC
- Ant Financial Services Group
- Tencent
Market Segmentation
- By Type: Proximity Payment (NFC, QR code Payment), Remote Payment (SMS based, USSD or STK, Direct Operator Billing, Digital Wallet)
- By End Use: Hospitality and Tourism, BFSI, Media and Entertainment, Retail, Healthcare, Education, IT & Telecommunication, Others
- By Purchase Type: Airtime Transfers & Top-ups, Money Transfers & Payments, Merchandise & Coupons, Travel & Ticketing, Others
- By Region: North America, Latin America, Europe, Asia-Pacific, Middle East and Africa (MEA)
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Table of Contents
1. Executive Summary
2. Market Overview
3. Global Mobile Payment Technologies Market Outlook, 2018 - 2031
4. North America Mobile Payment Technologies Market Outlook, 2018 - 2031
5. Europe Mobile Payment Technologies Market Outlook, 2018 - 2031
6. Asia Pacific Mobile Payment Technologies Market Outlook, 2018 - 2031
7. Latin America Mobile Payment Technologies Market Outlook, 2018 - 2031
8. Middle East & Africa Mobile Payment Technologies Market Outlook, 2018 - 2031
9. Competitive Landscape
10. Appendix
Companies Mentioned
- Alphabet Inc.
- Microsoft Corporation
- Apple, Inc.
- Boku, Inc.
- Fortumo OÜ
- PayPal, Inc.
- AT&T, Inc.
- Bharti Airtel Limited
- MasterCard International, Inc.
- American Express, Co.
- Visa, Inc.
- Vodafone Group PLC
- Ant Financial Services Group
- Tencent
Methodology
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