Mobile Wallet Market: 2027
The mobile wallet market size was valued at $1,043.1 billion in 2019, and is projected to reach $7,580.1 billion by 2027, growing at a CAGR of 28.2% from 2020 to 2027. A mobile wallet allows consumers to make transactions even during travel, from any location, anytime. It not only provides transaction facilities at affordable prices but also facilitates consumers to manage their accounts easily. While all these aspects are boosting the growth of the mobile wallet industry, consumers’ concerns related to security and technology infancy, investment, and deployment issues are expected to impede the growth of the mobile wallet market. Although these restraints are prevalent, companies from the telecommunication industry are collaborating with each other to serve the needs of their customers with new and improved product / service innovation.
Mobile wallet offers an entirely new dimension to retail sales to improve their business presence. While mobile devices provide consumers with an easy way to make payments, they act as a new channel for merchants and financial institutions to connect with their customers. Information can be easily sent and received via mobile devices; they also run specialty applications, and are location-aware. The mobile connection facilitates merchants and financial institutions to communicate information such as promotional offers with their customers in such a way that the information is targeted, useful, and more relevant to their interests. Businesses can also come up with new branded applications that are freely download able. As unique shopping preferences and needs of a person are tracked, this aspect can make customer communications highly personalized. Such a connected and real-time marketing offers a new opportunity and competitive challenge to marketers.
Wide adoption of smartphones indicates the accessibility level for mobile wallet. Smartphone users are able to make the most of the mobile wallet functionalities, and it is expected that more such users will come up in the next few years owing to plenty of benefits that mobile wallet provides.
On the basis of mode of payment, the global mobile wallet market is categorized into remote and NFC payment. The NFC market is further sub-segmented into NFC handsets, NFC chips and tags, NFC readers, NFC Micro SD, and NFC SIM / UICC card. The global mobile wallet market stakeholders encompass mobile network operators (MNOs), handset manufacturers, OSS / BSS solution providers, software developers, content applications & aggregators, and other stakeholders. Increase in awareness regarding mobile wallets and their applications, rise in smartphone penetration, and high affordability are expected to drive the growth of the mobile wallet application market. Moreover, widespread smartphone adoption and implementation of multi-channel strategies by merchants due to increase in competition from Internet vendors is further expected to propel the mobile wallet market opportunities in the coming years.
By Type
Remote is projected as one of the most lucrative segments.
The report focuses on the growth prospects, restraints, and market analysis. The study provides Porter’s five forces analysis of the mobile wallet industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the market.
Segment Review
The global mobile wallet market is segmented into type, technology, end user, industry vertical, and region. Depending on type, the market is bifurcated into proximity and remote. On the basis of technology, it is classified into near field communication, QR code, text based/ short message service, and digital only. By end user, the market is categorized into personal and business. By industry vertical, the market is classified into hospitality & transportation, media & entertainment, retail, healthcare, energy & utilities, telecommunication, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Technology
QR code is projected as one of the most significant segments.
The market players operating in the mobile wallet market analysis include Amazon Web Services Inc., American Express Banking Corp., Apple Inc., Alipay.com, AT&T Inc., Google Inc., Mastercard Incorporated, PayPal Holdings, Inc., Samsung Electronics Co., Ltd., and VISA Inc.
By End User
Personal is projected as one of the most significant segments.
Top Impacting Factors
Emergence of payment-enabled mobile phones, connected and real-time marketing, and the social media effect are some of the major factors impacting the market growth. The top markets with high revenue and growth rates are mobile commerce and mobile ticketing. The key market drivers for mobile wallet market forecast include rise in adoption of smart phones and companies’ efforts toward improvement in mobile commerce platforms, services, and apps owing to high usage. As for mobile ticketing, the growth is expected to be driven by anticipated extensive usage of NFC-based ticketing solutions for transit purposes. However, stiff competition in the market is expected to hamper the mobile wallet market growth.
By Applications
Retail is projected as one of the most significant segments.
Greater Convenience and Accessibility
The ability of mobile wallet to provide online bill payment options and other money transfer facilities easily and securely drives the growth of the market. In addition, the user-friendly interface of mobile wallets has increased the number of consumers that are opting for mobile wallet; where in they can receive and make regular payments at their convenience through mobile wallets. Also, the user-friendly interface facilitates ease of transaction during travel, which is a major factor estimated to boost the growth of the market. Even, financial institutions and banks get an opportunity to connect with consumers in rural areas via the mobile wallet module, which has helped the market to grow and reach its end user at less cost. Various modules of mobile wallet are being developed to enhance security and ease of use of such services, which is further expected to drive the mobile wallet market growth in the coming years.
By Region
Asia-Pacific would exhibit the highest CAGR of 30.5% during 2020-2027.
Covid-19 Impacts on Mobile Wallet Market
- The growth of mobile wallet market is expected to grow significantly during Covid-19 pandemic as the consumers are now preferring mobile wallets such as Paytm and Google Pay for making financial
- transactions to avoid physical contact with individuals to prevent transmission of corona virus.
- According to Reserve Bank of India (RBI), in April 2020, transactions made using mobile wallet across the India has been to double to 87.0 million compared to March 2020.
Key Benefits For Stakeholders
- This study includes the mobile wallet market trends, opportunity, analysis, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities of the mobile wallet industry.
- The mobile wallet market shareis quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of the buyers & suppliers in the mobile wallet market.
Mobile Wallet Market Report Highlights
| Aspects | Details |
 By Type |
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 By Technology |
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 By Application |
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 By End User |
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 By Region |
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 Key Market Players | PAYPAL HOLDINGS, INC., MASTERCARD, GOOGLE LLC, AMAZON.COM INC., VISA INC., AT&T INC., SAMSUNG ELECTRONICS CO., LTD., ALIPAY.COM, APPLE INC., AMERICAN EXPRESS COMPANY |
Analyst Review
From the past decade,payment models havewitnessed a monumental shift from physical to digitalpayments. As the ecosystem of modern payment processingconsists of complex network of consumers, banks, merchants, and payment processors, the number of online sales, smart payment devices, and mobile payments have increased at a high rate. This has changed the way consumers search and pay for goods and services online as well as changed the way payment systems accept, secure, and facilitate payments.Thus, the mobile payment technology has evolved rapidly due to which the global mobile wallet market experiences growth at a significant rate from the recent years.
Mobile wallet innovations in terms of technology and applications have shaped the future of the payment methods of theconsumers. Consumers are inclined toward mobile wallet applications due to rise in digitalization trend, which has helped them to eliminate inconveniencesfrom the everyday/cash transactions.
The ability of mobile wallets to store payment-related credentials and non-payment-related information boosts the adoption of mobile wallets as it provides a simple way to manage payments, participate in loyalty programs, track transactions, and other such benefits. It also eliminates the need to carry bank documents such as cards. The data stored of payment-related credentialsincludes credit/debit card, bank account details, and others and non-payment-related information includes loyalty cards, ticket information, and others, which helps the user to keep records of its transactional history.
The key players operating in the global mobile walletmarket include Amazon Web Services Inc., American Express Banking Corp., Apple Inc., Alipay.com, AT&T Inc., Google Inc., Mastercard Incorporated, PayPal Holdings, Inc., Samsung Electronics Co., Ltd, and VISA Inc.are some of the major companies profiled in the report.Major players have adopted various revenue and business growth strategies to enhance and develop their product portfolio, strengthen their mobile walletmarket share, and help them increase their market penetration.
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