Mobile Payment Market To Grow Extensively By 2020
The global mobile payment market is slated to grow extensively in the coming years, believe researchers, adding that countries such as India and China will lead the growth. The global mobile wallet market is projected to grow at a CAGR of 35.5 percent from 2017 to 2021, according to research firm Research and Markets. Much of its impact would be felt by 2020 when it will reach a critical point.
In a press release highlighting the launch of new research, the firm stated that the use of 3G and 2G mobile data and broadband around the globe is a big contributor to the growth of the market.
APAC will be the major revenue contributor to the mobile wallet market by the end of the forecast period, it said, adding that even though EMEA currently accounts for the major market shares, factors such as the increasing penetration of smartphones and mobile internet, the rise in usage of mobile devices in will augment the market’s growth prospects in this region.
“Mobile wallets are equipped with options like integration with coupons and tickets, which are making them highly popular among users. In addition, users can also save their card and bank details on their smartphones and make payments and purchases easily. The increasing technological advances in NFC devices and growing security of payment portals are other factors driving the market growth,” the research firm said.
Research and Markets’ assessment of the mobile wallet market has also been somewhat echoed by Technavio, as the research firm that predicted the market to grow at a CAGR or more than 35 percent in the next 4 years. According to Technavio, the use of mobile wallets in stores increased rapidly in 2015 and 2016 as operational costs for retailers were lowered, increasing their revenue.
“An effective mobile wallet strategy, which includes in-app mobile purchases, as well as in-store purchases, is critical for businesses across different categories as it enables consumers to modify their mobile wallet properties according to the retail stores they visit,” said Ujjwal Doshi, a lead analyst at Technavio for internet and eCommerce research.
Another study conducted last month by trade body Assocham and business consulting firm RNCOS stated that the mobile-wallet market in India is expected to grow at over 190 per cent to reach Rs 1,512 billion by financial year 2022 from the current level of about Rs.1.5 billion. The m-wallet transactions are likely to grow at a compounded annual growth rate (CAGR) of over 160 per cent to rise from just over half a billion in FY16 to 260 billion by FY22, said the report.
Growing usage of smartphones, robust mobile internet penetration, growth of e-commerce sector together with increasing disposable incomes are the factor which will drive this growth.
During 2016, the retail stores segment accounted for the major shares and dominated mobile wallet market. The adoption of cashless payments using mobile wallets reduces the operational cost for retailers and increases their revenue. Additionally, mobile wallets have much lower processing fee than card-based transactions and also enable retail stores to easily track and analyze consumer data. As a result, this segment will witness an increased adoption of mobile wallets in the coming years as well.
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