Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The mobile payments market is a dynamic and rapidly evolving sector, driven by a multitude of market factors that shape its growth and trajectory. One of the primary drivers is the increasing penetration of smartphones and internet connectivity. As more people around the world gain access to smartphones, the potential user base for mobile payments expands, fostering greater adoption. Additionally, the growing reliance on mobile devices for various daily activities, such as shopping and communication, further propels the demand for convenient and secure mobile payment solutions.
The rise of digitalization and the shift towards a cashless economy is another pivotal factor influencing the mobile payments market. Governments and businesses worldwide are embracing digital payment methods to enhance efficiency, reduce transaction costs, and curb issues related to physical currency, such as counterfeiting and money laundering. This shift in mindset creates an environment conducive to the widespread acceptance of mobile payments, as consumers seek faster, more efficient, and contactless alternatives to traditional payment methods.
The increasing prevalence of e-commerce and online shopping acts as a catalyst for the mobile payments market. With the ease of making purchases through mobile devices, consumers are inclined towards using mobile payment applications to complete transactions seamlessly. Merchants and businesses are also integrating mobile payment options into their platforms to cater to customer preferences, driving the overall market growth.
Security concerns play a crucial role in shaping the mobile payments landscape. As the frequency and volume of mobile transactions rise, consumers and businesses alike prioritize secure payment methods. The development of advanced security features, such as biometric authentication and tokenization, addresses these concerns, instilling confidence in users and fostering greater adoption of mobile payment solutions.
Interoperability is a key factor influencing the mobile payments market, as consumers demand seamless integration across various platforms and services. The ability to use a single mobile payment solution across different merchants, banks, and regions enhances user experience and promotes wider adoption. Market players are actively collaborating to establish interoperable systems, creating a more cohesive and user-friendly mobile payments ecosystem.
Regulatory frameworks and government policies also significantly impact the mobile payments market. Regulatory support and a clear legal framework contribute to the growth of mobile payments by providing a sense of security and stability for both users and service providers. Governments worldwide are recognizing the importance of fostering a conducive environment for mobile payments, leading to the development of supportive policies and regulations.
The competitive landscape and technological advancements are driving innovation in the mobile payments market. The presence of numerous players, ranging from established financial institutions to startups, fosters competition and spurs the development of new and improved mobile payment solutions. Innovations such as near-field communication (NFC), mobile wallets, and peer-to-peer (P2P) payment platforms continue to reshape the market and enhance the overall user experience.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Mode of Payment, Mode of Transaction, End Use Application, and Region |
Mobile Payments Market Highlights:
Mobile Payments Market Overview
Mobile Payments Market Size was valued at USD 13.9 billion in 2022. The Mobile Payments Market industry is projected to grow from USD 14.99 Billion in 2023 to USD 23.65 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.89% during the forecast period (2024 – 2032). The market expansion can be attributed to various drivers, including the flourishing mobile commerce industry and widespread adoption of smartphones ly. Additionally, the growing number of consumers accessing the internet for online shopping is projected to accelerate market growth in the foreseeable future. Businesses worldwide are adapting their payment systems to be compatible with mobile devices, which is opening up growth avenues for the market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Mobile Payments Market Trends
Sound Wave-Based Mobile Payment Solutions Poised to Drive Market Growth
The market growth is anticipated to be propelled by the rising acceptance of mobile payments that leverage sound wave technology. In contrast to traditional approaches such as mobile wallets, banking applications, card terminals, or NFC payment transactions based on sound wave technology utilize distinct sound waves that carry encrypted payment data. Sound wave based mobile payments do not depend on internet connectivity. Inexpensive and effortless deployment of sound wave-based payment solutions makes them an attractive choice, particularly in areas where the populace lacks access to advanced smartphones.
Sound wave-based mobile payment solutions offer several advantages, such as being easy to deploy and having low implementation costs. This makes them an appealing option for businesses, particularly in regions where people cannot afford advanced smartphones. The technology's convenience and ease-of-use have also contributed to its adoption, and it is expected to continue gaining popularity among customers.
Mobile Payments Market Segment Insights
Mobile Payments Mode of Payment Insights
The mobile payments market segmentation, based on mode of payment, includes mobile wallets/cards and mobile money. Mobile wallet segment held the majority share in 2022, contributing around ~32-35% to the mobile payments market revenue. One of the key drivers of the segment is the increasing consumer demand for contactless and convenient payment options, particularly in the wake of the COVID-19 pandemic. Mobile wallets offer a faster, more secure, and more convenient way to pay, making them an attractive alternative to traditional payment methods such as cash and cards. The demand for mobile wallet is expected to continue to grow in the coming years, driven by the increasing adoption of smartphones, the growing popularity of mobile payments, and the rise of new technologies such as biometric authentication and QR codes.
Figure1: Mobile Payments Market, by Mode of Payment, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the Mobile money segment is expected to grow fastest between 2023 and 2030. The Mobile Payments Market is expanding due to constant innovations and developments in technology.
Mobile Payments Mode of Transaction Insights
The mobile payments market data has been bifurcated by mode of transaction into short message service (SMS), wireless access protocol (WAP), near field communication (NFC), and others. The near field communication segment is projected to be the faster-growing segment during the forecast period 2022-2030.NFC technology enables customers to use their mobile devices to instantly redeem their coupons and helps retailers to incorporate customer loyalty programmes into their payment processes. The growth of the segment is anticipated to be fueled by the expansion of e-commerce platforms and the ongoing use of cutting-edge technologies in financial transactions. It is anticipated that factors like the rising popularity of wearable payment technology and the expanding mobile commerce trend would accelerate the uptake of NFC-based payments.
Mobile Payments End Use Application Insights
Based on end use applications, the mobile payments industry has been segmented into retail, entertainments, healthcare, education, and others. The retail segment is anticipated to grow at the fastest growth rate throughout the projection period owing to the rise in mobile commerce sales and the accompanying increase in smartphone users. Applications for smartphones are quickly becoming the most popular method of buying which bodes well for the segment's growth. In 2020, J.P. Morgan's 2020 E-commerce Payments Trends Study stated that around 54% of mobile commerce payments are made using specialized shopping applications.
Mobile Payments Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific mobile payments market accounted for 35% share in 2022 and is expected to exhibit a significant CAGR growth during the study period. This high revenue share is primarily due to the shifting lifestyle, increased smartphone adoption, and the modern online retailing trends. The region's market growth is anticipated to see development potential as a result of the growing government initiatives in Asia Pacific nations to go cashless. As mobile technology becomes more widely used in developing nations, banks and fintech companies will have new opportunities to provide mobile banking services to underserved and unbanked people in outlying regions.
Further, the major countries studiedin the market reportare the U.S., Canada, Germany, France, the UK, China, Japan, India, Australia.
Figure 2 : MOBILE PAYMENTS MARKET SIZE, BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North American mobile payments market accounts for the second-largest market share. The growth can be attributed to the presence of numerous significant market players such as PayPal Holdings, Inc., Square Inc., MasterCard Incorporated, Apple, Inc., and others. Moreover, the region has been a pioneer in implementing cutting-edge technologies. The use of mobile payments is also being fueled by the rise in unmanned businesses in the U.S.. The extensive use of mobile payment solutions in North America is mostly due to the expansion of the e-commerce sector.
The European mobile payments market is expected to grow at the fastest CAGR between 2022 and 2030, strong digital infrastructure and high smartphone penetration rates, making it an attractive market for mobile payment providers. Moreover, COVID-19 pandemic has further accelerated the shift towards digital payments, with many consumers preferring contactless payment methods. In addition, regulatory bodies such as the European Union are closely monitoring the mobile payments, ensuring that providers comply with regulations and safeguard consumer interests, which is anticipated to increase the awareness about mobile payments among people.
Mobile Payments Key Market Players & Competitive Insights
Major market players in the mobile payments industry are focusing on providing technologically advanced logistical solutions to increase their competitiveness on the market. Competitors in the mobile payments industry are adopting strategies like strategic agreements, new product launches, and product upgrades as part of their efforts to sustain their market position.
The mobile payments market is consolidated due to the presence of a few key players in the market. To improve client experience, they are also concentrating on forming strategic alliances with financial service providers. For instance, in 2021, MoneyGram International announced a cooperation with Sigue. Sigue is a P2P and B2B payment startup in the U.S. Through this relationship, additional financial institutions using the Sigue platform could access MoneyGram International's newest API-driven payment technology as well as the company's new MoneyGram as a Service business line.
PayPal Holdings, Inc. is a financial services company that offers digital payments and money transfer solutions to individuals and businesses. The company provides a range of services, including online money transfers, e-commerce payment processing, and mobile payments. PayPal allows users to send and receive payments using their email address or mobile phone number, making it a fast and convenient way to transfer money. PayPal is a key player in the digital payments industry, with a strong reputation for innovation, convenience, and security.
Also, MasterCard Incorporated, is a leader in the payments industry. The company offers a range of payment solutions, including credit, debit, and prepaid cards, as well as digital payment solutions such as Masterpass and contactless payments. These solutions enable secure, fast, and convenient payments for consumers and businesses of all sizes.
Key Companies in the Mobile Payments Market include
-
Starbucks Corporation (U.S.)
-
Samsung Group (South Korea)
-
PayPal Holdings Inc. (U.S.)
-
MasterCard Incorporated (U.S.)
-
General Motors Company (U.S.)
-
Square Inc. (U.S.)
-
Paytm (India)
-
Apple (U.S.)
Mobile Payments Industry Developments
February 2022: Google Pay was introduced for users in the UK and Italy by Soldo, a European spend and payment automation platform. By incorporating with Google's technology, Soldo's 30,000 clients made online and safe contactless in-person payments through apps that support Google Pay.
January 2022: Bessemer Venture Partners and Tiger Management, LLC led a series-A round of fundraising for Rupifi, a supplier of B2B payment applications, which raised USD 25 million. With this funding, Rupifi intends to develop an omnichannel mobile-first B2B payments solutions and a full B2B checkout product for suppliers, retailers, and sellers.
December 2021: Visa announced its acquisition of Currencycloud, a platform that enables financial institutions and fintech firms to offer cutting-edge cross-border payment solutions. The acquisition aimed to give customers and partners more freedom and transparency when sending money abroad.
Mobile Payments Market Segmentation
Mobile Payments Mode of Payment Outlook
-
Mobile Wallets/Cards
-
Mobile Money
Mobile Payments Mode of Transaction Outlook
-
Short Message Service (SMS)
-
Wireless Access Protocol (WAP)
-
Near Field Communication
-
Others
Mobile Payments End Use Application Outlook
-
Retail
-
Entertainment
-
Healthcare
-
Education
-
Others
Mobile Payments Regional Outlook
- North America
-
US
-
Canada
-
- Europe
-
Germany
-
France
-
Rest of Europe
-
- Asia-Pacific
-
China
-
Japan
-
India
-
Australia
-
Rest of Asia-Pacific
-
- Rest of the World
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
