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The mobile payments market has undergone significant transformations in recent years, reflecting the dynamic nature of the digital landscape. One prominent trend is the escalating adoption of mobile payment solutions across diverse industries. As consumers increasingly prioritize convenience and efficiency, mobile payments have emerged as a preferred method for transactions. The widespread availability of smartphones and the proliferation of secure payment apps contribute to the growing acceptance of mobile payments.
Another notable trend is the integration of innovative technologies, such as Near Field Communication (NFC) and biometric authentication, into mobile payment systems. NFC facilitates seamless transactions by allowing users to make payments with a simple tap, while biometric authentication enhances security through features like fingerprint or facial recognition. These advancements not only streamline the payment process but also bolster trust among users by ensuring robust security measures.
The global shift towards a cashless society has played a pivotal role in shaping mobile payment trends. With the rise of e-commerce and the advent of contactless payment options, consumers are gradually moving away from traditional cash transactions. This transition is driven by the convenience of mobile payments, as users can effortlessly make purchases, transfer funds, and manage their finances with just a few taps on their smartphones. As businesses adapt to this evolving landscape, mobile payment solutions become increasingly integral to their operations.
Furthermore, the mobile payments market is witnessing a surge in partnerships and collaborations between financial institutions, technology companies, and mobile service providers. These strategic alliances aim to create comprehensive ecosystems that offer users a seamless and interconnected experience across various platforms. By combining expertise and resources, these collaborations contribute to the development of more robust and user-friendly mobile payment solutions.
The emergence of cryptocurrencies and blockchain technology has also left an indelible mark on the mobile payments market. Some mobile payment platforms now support cryptocurrency transactions, providing users with additional options for conducting financial transactions. The decentralized and secure nature of blockchain enhances the transparency and trustworthiness of these transactions, further contributing to the diversification of mobile payment methods.
In addition to these trends, the global COVID-19 pandemic has accelerated the adoption of mobile payments as people seek contactless alternatives to minimize physical interactions. The increased awareness of hygiene and safety concerns has prompted both businesses and consumers to prioritize mobile payment solutions, further solidifying their position in the market.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Growing shift toward contactless payment during the COVID-19 pandemic Emerging technological advancements in mobile payments |
| Market Dynamics | Surge in penetration of smartphones and growth of mobile commerce industry across the globe Sound Wave-Based Mobile Payment Solutions Poised to Drive Market Growth |
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
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Starbucks Corporation (U.S.)
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Samsung Group (South Korea)
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PayPal Holdings Inc. (U.S.)
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MasterCard Incorporated (U.S.)
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General Motors Company (U.S.)
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Square Inc. (U.S.)
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Paytm (India)
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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
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Mobile Wallets/Cards
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Mobile Money
Mobile Payments Mode of Transaction Outlook
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Short Message Service (SMS)
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Wireless Access Protocol (WAP)
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Near Field Communication
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Others
Mobile Payments End Use Application Outlook
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Retail
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Entertainment
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Healthcare
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Education
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Others
Mobile Payments Regional Outlook
- North America
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US
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Canada
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- Europe
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Germany
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France
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Rest of Europe
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- Asia-Pacific
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China
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Japan
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India
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Australia
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Rest of Asia-Pacific
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- Rest of the World
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