Mobile Wallet Market

Mobile Wallet Market Growth Outlook for 2023 to 2033

The global mobile wallet market has reached a value of US$ 269 billion in 2023. Global demand for mobile wallets is predicted to surge at a CAGR of 22% and reach a market value of US$ 1,965 billion by the end of 2033.

• QR code technology-based mobile wallets are expected to hold over 47% share of the global market revenue by the end of 2033.

Consumers around the world are opting for online transactions and cashless payments in recent years. Increasing digitalization along with the growing adoption of intelligent devices, including smartphones, etc. is estimated to boost demand for mobile wallets. Rising government initiatives for the development of smart cities and increasing internet penetration are also predicted to propel sales of mobile wallets globally.

A mobile wallet is also addressed as eWallet or mWallet. It is a virtual wallet, which stores information about payment cards on a mobile device. Mobile wallets are digital debit cards. Prepaid or Master Card information is employed to make web money traction and to receive or send payment. Numerous payment processing models, including near-field communications, mobile web payments, SMS-based transactions, etc. are used to deliver mobile wallets.

Straightforward access and convenience of this payment method are ensured with the use of mobile devices. Acceptance of various mobile wallet payments along with offers provided by these services is estimated to contribute to target market growth. Regulations and initiatives of the government for online payment processing methods are also driving lucrative opportunities in the coming years.

There are a lot of advantages associated with the use of mobile wallets, including fast transfer of funds, ensuring timely payments, split billing facility, and convenience to load money. Internet-connected devices and smartphones are expected to boost growth opportunities for industry players. The banking and market players provide various mobile wallet applications for smartphones, therefore propelling demand for mobile payments in the industry around the world.

This recently published research report by Fact.MR, a provider of market research and competitive intelligence, on mobile wallets provides a holistic evaluation of the industry. The research report offers a detailed analysis of various key segments, restraints, trends, factors, and competitive landscapes, which are playing a noteworthy role in the industry.

Report Attributes	Details
Mobile Wallet Market Size in 2023	US$ 269 Billion
Forecasted Market Value (2033)	US$ 1,965 Billion
Global Market Growth Rate (2023 to 2033)	22% CAGR
Revenue Share of Asia Pacific (2022)	30%
Predicted Growth Rate of Proximity Mobile Wallet (2023 to 2033)	25%
Key Companies Profiled	Amazon Web Services Inc. American Express Visa Inc. Apple Inc. PayPal Holdings Inc. Google Inc. Mastercard Incorporated Airtel

Why is Demand for Mobile Wallets Surging Globally?

“Increasing Investments in Fintech Defining Industry Landscape”

Over the years, the fintech industry has been gaining noteworthy traction. It further encourages banks to stimulate technological investments.

For instance,

• Xendit, in September 2021, secured around US$ 150 million in Series C funding. This investment helped the company to develop advanced digital payment services for target consumers.

Mounting investments in the fintech industry are anticipated to create lucrative opportunities for businesses of mobile wallets.

“Tech Innovation Bolstering Adoption of Mobile Wallets”

Tech innovation, including the feature to know consumers in real time, is predicted to act as one of the vital factors driving the adoption of mobile wallets. Owing to its ability to get information about usernames in real-time, the mobile wallet makes more retailers adopt the technology. Moreover, mobile wallets come with a feature to simplify consumers’ work. Therefore, these features are further expected to flourish market opportunities.

Which Factors are Anticipated to Negatively Impact Demand for Virtual Wallets?

“Growing Risk of Cyber-attacks Hindering Adoption of Mobile Wallets”

Despite the increasing adoption of mobile payment services, the risks of various cyber-attack are expected to create roadblocks to the constant growth in the target industry.

• According to the data provided by NITI Aayog, more than 50% of Indian organizations were impacted by cyberattacks, including ransomware, denial of services, phishing, and malware in the year 2020.

Fintech service providers are constantly deploying new technologies and features to match consumer requirements. They are becoming more exposed to different forms of cyber breaches, which is predicted to hamper trends of mobile wallets.

Which Strategies Should Start-ups Incorporate to Generate Market Traction?

“Development of More Advanced and Secure Technology”

New players, which are entering the industry should come up with more advanced, secure, and innovative technology, which can be used for money transfers. Security from cyber threats is one of the vital features, which is estimated to help new entrants to generate a fortune over the next 10 years.

Which Region Provides Lucrative Opportunities for Industry Players?

“Rapidly Rising Penetration of e-Commerce Platforms Stimulating Demand for Digital Payments in Asia Pacific”

Latin America, Europe, Asia Pacific, North America, and the Middle East & Africa are some key regional areas, which are contributing to global market revenue. Among these, Asia Pacific is expected to hold a dominating position owing to increased demand for digital payment. The region held around 30% of the global revenue share in the year 2022.

Increasing number of e-Commerce platforms, including Alibaba, Amazon, Flipkart, and others in Asia Pacific countries, including India and China are predicted to put a positive impact on the growth of e-wallets. Growing incidence of government actions, including demonetization, is expected to result in massive demand for mobile payment methods in India. Moreover, increased penetration of smartphones along with the rising adoption of advanced technologies is also anticipated to increase demand for mobile wallets in the region.

Country-wise Insights

Which Asia Pacific Countries are Key Markets for Mobile Wallet Providers?

“India, China, Japan – Prominent Markets in APAC”

The rising count of Internet subscribers, growing adoption of smartphones, and rapid growth in e-Commerce and retail in Asia Pacific countries, including China, Japan, and India are contributing to market growth. Moreover, growing incidence of government initiatives, including Make in India and Digital India, is forecasted to increase the penetration of smartphones and various other smart devices, which is leading to rising demand for digital payments.

What is the Scenario of Mobile Wallets in the United States?

“Mobile Wallets are Preferred for Improved Banking Experiences”

Device manufacturers, banks, telecom providers, and tech firms are key mobile wallet users in the United States. Further, banks in the United States are striving to enhance the banking experience of their clients, by providing convenient transactions.

Why is Germany Emerging as an Important Market for Mobile Wallets?

“Increasing Digitalization Level Bolstering Demand for Mobile Payments”

The increasing digitalization level in Germany is stimulating demand for mobile wallets there. Companies in Germany are prioritizing compliance and security of mobile payment services to generate trust across the country. Service development companies in Germany are also predicted to boost demand for phone payments.

Category-wise Insights

Why is There High Preference for Proximity Mobile Wallets?

“Increasing Convenience in Payment through Proximity Mobile Wallets”

With the use of mobile proximity, mobile wallet technology ensures convenience for consumers. Therefore, the proximity segment is predicted to expand at a high CAGR of 25% through 2033. This technology ensures individualized services for payment needs and online shopping. Near field communication (NFC)-enabled devices ensure convenience for consumers to purchase products at the closest POS (point of sale) without any requirement to carry cash or wait in a row.

What Allows QR Code Technology-based Mobile Wallets to Account for Noteworthy Market Share?

“QR Code Technology Gaining Immense Popularity”

QR code scanners are used widely for cashless transactions around the world. QR codes help consumers to accept and transfer payments and to initiate transactions. The real-time platform facilities the exchange of required information in seconds, which is anticipated to contribute to a substantial rise in QR-based mobile wallets.

The segment is expected to hold around 47.1% of the global revenue share by the end of 2033. The increasing adoption of technology is attributed to rising smartphone penetration along with simplicity and convenience in mobile payments. The expansion of high-speed internet services is also boosting demand for QR codes for mobile wallets.

Why is Usage of Mobile Wallets High in Retail & e-Commerce?

“Increasing Chances for Consumer Loyalty in Retail & e-Commerce Through Mobile Wallets”

Hospitality & transportation, retail & e-Commerce, vending machines, and banking are some key areas of application of mobile wallets. The retail & e-Commerce segment held around 31% of the global revenue share in 2022. The potential advantages of using mobile wallets for payments are becoming more apparent to online retailers. Retailers, which integrate contactless payment and cashless payment technology with digital marketing are predicted to gain more consumer loyalty and opportunities.

Near field communication (NFC) technology is estimated to increase operational effectiveness through quicker checkout and low processing costs. The technology is helpful to aid e-Commerce retailers and companies to provide exceptional tracking and promotion loyalty rewards to enhance relations with mobile consumers. Mobile devices enable consumers to establish communication with retailers and send and receive information about promotional offers and track payment history.

Key Market Players

Key suppliers of mobile wallets are focusing to provide safer and more effective solutions to increase brand loyalty and attract a larger client base. Leading service providers are actively concentrating to use advanced technologies to maintain product standards and further managing the supply chain management system.

Partnerships, agreements, new developments, etc. are some key strategies, which are incorporated by key players to expand their footprints around the world.

For instance,

• Damen ePayment, in July 2022, launched its mobile wallet application in collaboration with BKN301. The latter is a company operating in financial technology, which develops payment services and Cashflo, banking-as-a-service functionalities.
• Samsung, in June 2022, unveiled the Samsung Wallet to enable its customers to store identification cards, boarding passes, and digital keys in one location. This new initiative can help users to monitor their digital assets with cryptocurrencies’ value.
• Samsung, in October 2019, declared its partnership with Mobeewave to launch mPOS Payments around the world.

Key players in the mobile wallet market are Amazon Web Services Inc., American Express, Visa Inc., Apple Inc., PayPal Holdings Inc., Google Inc., Mastercard Incorporated, and Airtel.

Segmentation of Mobile Wallet Industry Research

• By Type :

  • Proximity
  • Remote

• By Technology :

  • Near Field Communication
  • Text-based/Short Message Services
  • QR Code
  • Digital Only

• By Application :

  • Hospitality & Transportation
  • Retail & e-Commerce
  • Vending Machines
  • Banking

• By Region :

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