Mobile Wallet Market by Wallet Type (Open, Closed, and Semi-closed), Payment Type (Point of Sale and Remote), Technology (NFC, QR Code, Mobile Apps, and Others (MST, BLE, and Sound Waves Based)), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Software and Services

IC20115953

Pages: 222

Sep 2021

Reports Overview

Global Mobile Wallet Market Analysis

The global mobile wallet market size is predicted to garner a revenue of $46,006.0 million in the 2021–2028 timeframe, growing from $11,176.5 million in 2020, at a healthy CAGR of 18.9%.

Market Synopsis

Some of the primary reasons influencing market growth are connected and real-time marketing, the emergence of payment-enabled mobile phones, and the social media influence.

However, barriers like lack of understanding about the benefits as well as cyber-related crimes of mobile wallet industry might restrain the market growth during the forecast period.

According to the regional analysis of the market, the Asia-Pacific mobile wallet market share is anticipated to grow at a CAGR of 19.7%, by generating a revenue of $18,025.2 million during the review period.

Mobile Wallet Market Overview

Consumers can use a mobile wallet to do transactions while on the go, from any location, at any time. It not only offers low-cost transaction services, but it also makes it simple for customers to manage their accounts. While all of these factors are helping to propel the mobile wallet market forward, consumer worries about security and technology infancy, as well as investment and deployment challenges, which are projected to stymie the market's expansion. Despite these constraints, telecommunications businesses are working to meet the requirements of their customers with new and enhanced product/service innovation.

Covid-19 Impact on Mobile Wallet Market

In March 2020, the World Health Organization declared COVID-19 as a pandemic, which resulted in restrictions on travel and disturbances in financial markets, as well as negatively impacted supply chains and production levels. COVID-19 has sparked a public health catastrophe that has impacted practically every area of people's lives around the world, as well as putting the global economy on shaky ground. The pandemic and its effects have expedited a number of current trends in consumer and corporate behavior, as well as introduced new ones, such as supply chain restructuring and cross-border trade, in the payments industry. In the past few months, there has been a considerable increase in e-commerce, digital wallet payments (including contactless), rapid payments, and cash displacement. The mobile wallet market is anticipated to grow gradually during Covid-19 outbreak as customers are now choosing mobile wallets like PhonePe and Google Pay for financial transactions to avoid physical contact with others in order to prevent the spread of corona virus.

Increase in Mobile Transactions is Anticipated to Drive the Market Growth

The popularity of mobile wallet payments across many industry verticals is driving the growth of the mobile wallet market. By lowering processing fees, the mobile wallet, which is a virtual wallet in payment-enabled mobile phones, has improved operational efficiency and cost-effectiveness. PayPal, for example, has expanded its operations to more than 200 countries, allowing clients to link their mobile wallets to their bank accounts and carry a balance. Incentives offered by mobile wallet firms, such as discounts and cashbacks have increased the demand among users. For example, Amazon Pay pays rewards on transactions made using the service. Mobile wallets will be in high demand as a result of these types of offers and incentives.

To know more about global mobile wallet market trends, get in touch with our analysts here.

Lack of Trust on Mobile Wallet Might Restrict the Market Growth

Low confidence in mobile wallets might be a big stumbling block for the market in the coming years. According to a research published by yourgov, an application that allows one to personally report non-emergency issues and service requests, around 43% of mobile users do not trust mobile wallets, and 38% have inadequate security confidence. Similarly, most consumers are hesitant to adopt mobile wallets since contactless payment entails a significant unknown risk of fraud, such as data leakage, hacking, and e-wallet vulnerabilities. Furthermore, there is a lack of understanding about the advantages of using mobile wallets for online payment and purchasing pricey things over cash, credit cards, and debit cards. All of these factors will limit market expansion over the forecast period.

Technological Advancements are Expected to Increase the Opportunities of Mobile Wallet Market Growth

Payment services are critical to a country's economic development. With digitization and ongoing technical advancements, this technology can progressively provide consumers and organizations with a variety of personalized, convenient, and flexible transaction options. Financial inclusion, budgeting, and activities to prevent and combat economic crime can all be aided by digital payments. Furthermore, governments are aware of the rapidly increasing usage of digital payments and they want to ensure that everyone has access to the ability to pay for products and services digitally. As a result, numerous initiatives are being implemented, which have already aided in making digital payments by making them simpler, faster, and less expensive.

To know more about global mobile wallet market opportunities, get in touch with our analysts here.

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