Mobile Money Market Expected to Reach $121.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Mobile Money Market," By Payment Type (Remote Payment, and Proximity Payment), Nature of Payment (Person-to-Person (P2P) , Person to Business (P2B) Business to Person (B2P) , and Business to Business (B2B)) and Application (Money Transfers, Bill Payments, Airtime Transfers & Top-Ups, Travel & Ticketing, and Merchandise & Coupons): Global Opportunity Analysis and Industry Forecast, 2023-2032". The mobile money market was valued at $8.5 billion in 2022, and is estimated to reach $121.6 billion by 2032, growing at a CAGR of 30.8% from 2023 to 2032.

Mobile money is the subset of mobile proximity payments, in which the underlying payment instrument is either a card or a credit transfer. Mobile proximity payments include both customer-to-business and person-to-person payments. Moreover, using the Internet, users may transfer monies from their bank accounts to other accounts on the same platform using person-to-person (P2P) technology. Although P2P is considered a distant payment, some providers have expanded their offering to include in-store payments, called Person-to-Business (P2B). Quick Response code (QR-code) is a mobile advertising technique that has been developed to distant and proximity mobile payment. It is based on a two-dimensional barcode that encodes information to make contactless transactions using a code reader on a smartphone. 

Furthermore, increase in the use of digital payment-based business models and increase in the efficiency of mobile money transactions is boosting the growth of the global mobile money market. In addition, increase in adoption of mobile POS is positively impacts growth of the market. However, security issues and privacy concerns and lack of accessibility is hampering the mobile money market growth. On the contrary, rise in government initiatives and regulatory support is expected to offer remunerative opportunities for expansion of the market during the forecast period. 

Depending on transaction mode, the point-of-sale segment holds the largest mobile money market share, owing to the rising adoption of POS solutions among SMEs. However, the QR codes segment is expected to grow at the highest rate during the forecast period, owing to the rise in the adoption of QR codes by various businesses to improve their operational efficiency and control various processes. 

Region-wise, the mobile money market size was dominated by Asia-Pacific in 2022 and is expected to retain its position during the forecast period, owing to an increase in usage of debit and credit cards for online and in-store transactions. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rise of mobile payment platforms, such as Alipay and WeChat Pay, which has transformed the payment landscape.

The mobile money market is projected to prosper in the COVID-19 situation owing to a rise in online sales and the increasing use of online payment solutions. Customers across the world have shifted from offline shopping to online shopping during the pandemic. According to Digital Commerce 360, a media organization, online sales in the U.S. valued at nearly $204.62 billion in Q3 2021, an increase of 6.8% compared to Q3 2020. Lingering customer anxiety over being in crowded places amid the pandemic is driving demand for online retailing.

Moreover, IT businesses are expanding product offerings and services to make them more widely available throughout the world. As a result, rise in number of Software as a Service (SaaS) and cloud-based client interaction, remote connection, and collaboration services has seen a large spike in new sign-ups across its entire product range because of the epidemic during the COVID-19 pandemic in consumers drive the mobile money market trends.  The integration of advanced technologies such as cloud computing and data analytics help providers with new services and encourage enterprises to adopt novel and innovative solutions. Software consulting technology has increased the efficiency of enterprises in decision-making processes with their investment strategy for software adoption.    

In addition, digitization of industries and the evolution of the Enterprise 2.0 concept, which involves the use of a combination of social software and collaborative technologies for business processes. Owing to this global pandemic, many organizations are finding it difficult to meet the end users demands hence they are increasingly opting for software consulting solutions and services to accelerate service delivery. For instance, in February 2021, WeChat Pay launched a new feature called "WeChat Pay Go." The feature allowed users to make payments without having to download the WeChat app. Such strategic initiatives create numerous opportunities for high market growth in the mobile money market forecast.

Key Findings of The Study

• By payment type, the remote payment segment accounted for the largest mobile money market share in 2022. 

• Region wise, Asia-Pacific generated highest revenue in 2022. 

• Depending on application, the mobile transfer segment generated the highest revenue in 2022. 

The key players profiled in the mobile money market analysis are Apple Inc., Amazon Inc, Alipay, Fiserv Inc, global payments inc., Google Inc, Mastercard Inc., Orange, PayPal, and Vodafone Group. These players have adopted various strategies to increase their market penetration and strengthen their position in the mobile money industry.