Mobile Payment Market

Mobile Payment Market Growth Outlook (2022-2032)

Demand for mobile payments is likely to garner a market value of US$ 42 Billion in 2022 and is expected to register a staggering double digit CAGR of 30% by accumulating a market value of US$ 590 Billion through the assessment period 2022-2032

Rise in m-commerce industry and increase in the penetration of smartphones across the globe is driving the dependency on mobile payments. Furthermore, online shopping of various goods along with businesses using mobile payments is bolstering the demand for mobile payments.

Report Attributes	Details
Market Size in 2022	US$ 42 Billion
Project Market Forecast Value in 2032	US$ 590 Billion
Global Growth Rate (2022-2032)	30%
Market Share of Asia Pacific	35%
Key Companies Profiled	Google (Alphabet Inc.) Samsung Electronics Co. Ltd. Visa Inc. Alibaba Group Holdings Limited PayPal Holdings Inc. WeChat (Tencent Holdings Limited) American Express Company M Pesa Money Gram International Amazon.com Inc. Apple Inc.

Demand Analysis of Mobile Payment from 2015 to 2021 Vs Market Projections for 2022 to 2032

As per Fact.MR’s report, from 2015 to 2021, demand for mobile payments reached US$ 36 Bn by the end of the said historical period. According to Fact.MR- market research and competitive intelligence provider- mobile payment demand surged at a CAGR of 27%. Rising ownership of smartphones amid deepening digital literacy has popularized mobile payments in the past few years.

The growth of money transactions through mobile payments surged in the COVID-19 pandemic, as governments globally enforced strict social distancing norms, preventing the occurrence of conventional face-to-face financial transactions. The number of mobile based online payment gateways experienced a staggering incline, with consumers relying on various e-commerce websites to purchase goods and services.  

Moreover, mobile payments are offering rewards and cashbacks. This, in turn, is attracting consumers to use mobile payments. Thus, the sales of mobile payment are expected to exceed US$ 590 Bn by registering a CAGR of 30% in the forecast period 2022-2032.

Easy to Use Design Accelerating Growth of Mobile Payments?

Mobile payment solutions are not only fast but are also convenient. The penetration of smartphones and tablets along with strong network connections is playing a key role in the usage of mobile payments. In addition, e-commerce and traditional businesses are adapting to changing customer behaviour that includes cashless payment methods through mobile devices.

Furthermore, the convenience of using mobile payments is playing a key role in the adoption of mobile payments as they do not require multiple steps of verification for making payments. Moreover, banks are providing instant payment services to consumers and are offering an easy to use experience for consumers.

How has COVID-19 Pandemic Influenced the Growth of Mobile Payments?

In comparison to PIN and chip technology, mobile payment technology helps in making transaction instant and easy. As mobile payment technology uses NFC in mobile devices, customers need not come into physical contact with the POS devices to transfer information and only the mobile devices need to be near the terminal. Thus, consumers and businesses are rapidly adopting mobile payments.

Furthermore, due to the restriction on movements, consumers preferred using mobile payments during the time of COVID-19 pandemic. The ease of using mobile payments along with having transaction details is driving the usage of mobile payments. In addition, E-commerce websites are accepting money through mobile payments. This, in turn, has accelerated the growth of mobile payments.

Country-wise Analysis

Inclination Towards Cashless Transactions Driving Demand for Mobile Payments in Asia Pacific?

Changing lifestyle along with latest online retailing trends in countries like India and China is playing a key role in an increase in the use of mobile payments. In addition, government initiatives across the Asia Pacific countries to go cashless are is creating lucrative opportunities for regional players.

Moreover, widespread adoption of mobile technology in emerging countries is offering offers fintech players and banks a new way to offer mobile banking solutions to customers in remote areas. Thus, Asia Pacific is expected to dominate by possessing nearly 35% market share for mobile payment.

E-Commerce Industry Creating Lucrative Opportunities for Mobile Payments in North America?

North America has been an early adopter of the latest and advanced technologies. In addition, growth in the e-commerce industry is mainly responsible for the extensive adoption of mobile payment solutions in North America.

Moreover, the growing number of unmanned stores in the U.S. are driving the adoption of mobile payments. Thus, North America is anticipated to possess more than 25% market share for mobile payments.

Category-Wise Insights

COVID-19 Pandemic Positively Affecting the Growth of Remote Payments?

The COVID-19 pandemic positively impacted the remote payment segment due to the restriction on movements. In addition, several companies are launching remote payment apps to allow customers to make payments remotely.

Furthermore, the increasing adoption of a virtual terminal for remote billing is expected to drive segment growth. Thus, remote payment is expected to hold more than 60% market share for mobile payments through 2032.

Convenience of Making Payments Escalating Demand for Mobile Payments in BFSI?

Several banks are focusing on introducing mobile payments. This, in turn, is increasing the usage of mobile payments. In addition, mobile banking and payments are creating new opportunities for banks to offer additional convenience to their existing customers and to reach a large population of unbanked customers in developing countries.

Moreover, businesses, particularly, are adopting a custom suite of comprehensive payment solutions. This helps in resolving unique challenges across various end user sectors. Thus, by end user, BFSI is expected to hold more than 20% market share for mobile payments.

Competitive Landscape

Prominent mobile payment service providers are continuously striving to enhance the digital financial transactions landscape by introducing highly secure and fast acting wallets and payment gateways. Furthermore, collaborations with governments to facilitate transition towards a digitized economy are also being witnessed. Some prominent developments are as follows:

• In October 2021, Samsung Electronics Co. Ltd launched a scan QR feature with camera and quick panel for easier and faster payments in India. The feature is currently live on Samsung pay compatible devices.
• In August 2021, Visa Inc launched “Bring India Home” initiative. Through this initiative, the company is focusing on making 50 million small businesses across India to go digital. This will help businesses earn money via mobile payments.

Key Segments Covered

• By Technology :

  • Direct Mobile Billing
  • Interactive Voice Response System based Mobile Payment
  • Mobile App based Payments
  • Mobile Payments via Near Field Communication
  • Mobile Web Payment
  • Mobile Payment via SMS
  • Other Mobile Payment Technologies

• By Type :

  • B2B 
  • B2C 
  • B2G 
  • Other Payment Types

• By Location :

  • Remote 
  • Proximity 

• By End Use :

  • Media & Entertainment
  • Healthcare
  • IT & Telecom
  • Retail & E-commerce
  • Transportation
  • BFSI
  • Other End Uses

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa