Rising Usage of Smartphones to Fuel Growth of the Mobile Wallet Market
Popularly known as mobile money, or mobile money transfer, the mobile wallet technology is a type of payment service through which individuals can receive and send money by mobile devices. It is a form of an e-commerce model designed for the mobile devices for the convenience and ease of access. Aside, mobile wallet securely stores credit or debit card. They can also store loyalty cards, coupons, and tickets. The emergence of payment-enabled mobile phones connected and real-time marketing, and the social media effect are some of the primary drivers influencing industry growth. The increasing use of smartphones is a driving element for the mobile wallet market. With the rising smartphone sector, there is a surge in smartphone consumption, which works as a driving factor for the growth of mobile wallets.
Furthermore, the rapid acceptance of mobile wallets by restaurants, bars, and hotels promotes mobile wallet market. According to a recent article, the number of smartphone subscriptions globally has surpassed six billion in 2021 and is expected to rise by several hundred million in the next years. Incentives and promotion schemes such as cash backs, discounts, offers, gifts, and others contribute toward the growth of mobile wallet market.
They communicate with the terminals using various techniques or technologies. The launch of 5G technology is a thriving element for market expansion because it mobilised internet connectivity, which means that access to mobile internet is faster and easier. The ability of mobile wallets to provide online bill payment alternatives and other money transfer facilities supports industry expansion easily and securely. Furthermore, the user-friendly interface promotes ease of transaction throughout travel, which is a major factor expected to boost market growth. Various mobile wallet modules are being created to improve the security and usability of such services, which is projected to fuel the mobile wallet market growth in the future years.
There were around 664 million active 5G subscriptions in 2021. This figure is predicted rise more than sixteen-fold by 2027, when there are expected to be close to 4.39 billion active 5G subscriptions. Several firms in the mobile wallet market, including Alibaba Group, Apple Pay, Samsung Pay, Square, and American Express, are working hard to develop applications that are user-friendly, simple to use, and secure to entice more consumers to use a mobile wallet and help the market grow. The mobile wallet module allows financial institutions and banks to engage with clients in rural areas, allowing the market to grow and reach its end user at a lower cost. In June 2021, Danske Bank A/S of Denmark has reached a deal with OP Financial Group of Finland and the consortium of banks behind Vipps in Norway to integrate the three mobile payment providers, MobilePay, Pivo, and Vipps to create a single shared mobile wallet platform for their respective consumers.
Extreme Security, and Quick Payment Provided by QR Code to Drive Growth of Mobile Wallet Market
The QR code segment is expected to be the most rapidly increasing and rising market. The market is predicted to generate income. QR code payments are extremely secure. It's because a QR code is nothing more than a data transfer tool. Any data sent by QR codes is encrypted, ensuring the transaction's security. One of the most important advantages of QR codes is that they enable quick payment. When compared to other payment methods, QR codes are quick and dependable.
Increased Government-led Programmes in Asia Pacific to Drive Growth of Mobile Wallet Market
Asia Pacific region is likely to remain the dominant region and to maintain its dominance during the prediction period. Some of the causes that contribute to its domination include the Android operating system, which encourages more people to use smartphones, and a rise in disposable money due to the region's economic growth, which nurtures the need for and promotes the consumption of smartphones. As more smartphones become available, there is an increase in the number of mobile wallets, which acts as a driving factor for market expansion.
Increasing demand from countries such as China, and India because of changing consumer needs and disposable income is also predicted to expand significantly over the projection period. Furthermore, government-led programmes in the country such as Make in India, and Digital India are expected to increase the penetration of smartphones and other consumer electronics, resulting in increased demand for the industry. China leads the globe in proximity mobile payment adoption, with 81 percent of smartphone users in the country making a proximity mobile payment in the previous six months. In China, around 852.5 million consumers used mobile payment transactions as of December 2020, up from approximately 765 million users in March 2020. The mobile payment sector in China is expanding.
Europe is the second most dominant region, and some of the factors contributing to its dominance include people's ability to quickly adopt new technology, which helps to simplify the work of various businesses; as Europe is a developed country, it provides its people with much faster internet facilities than developing countries, which helps in gaining more consumers to use a mobile wallet; and strong government support to move towards a cashless society. According to J.P. Morgan Global Payment Trends 2019, the Norwegian mobile commerce market is worth €4.26 billion, and this is one of the factors driving the market's growth in this region.
Global Mobile Wallet Market: Competitive Landscape
In January 2022, HUMBL, Inc., a merchant service software firm based in the United States, announced the integration of BLOCKS to its HUMBL Pay mobile wallet, allowing clients to purchase BLOCKS through gasless, peer-to-peer transactions. In March 2021, Payoneer, a digital payments provider, has partnered with Mastercard to launch the Payoneer Digital Purchasing Mastercard, a digital payments card for small businesses. Customers can use their Payoneer Digital Purchasing Mastercard to make purchases all over the world by connecting it to their mobile wallets.
A few of the players in mobile wallet market include Alipay.com, Amazon.com Inc., American Express Company, Apple Inc., AT&T Inc., Google LLC, Mastercard, PayPal Holdings, Inc., Samsung Electronics Co., Ltd., and Visa Inc.
Regional Classification of the Global Mobile Wallet Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Mobile Wallet Market
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