The global mobile wallet market is expected to reach $2,950.2 billion and 1,420.8 million users by 2020, according to a new study by Grand View Research, Inc. Increasing smartphone penetration, exponential growth of mobile internet applications and advancement of 3G and 4G networks are expected to serve as key market drivers over the forecast period. Technological advancement and the advent of NFC (Near-Field Communication) are also expected to positively impact market growth over the forecast period.
The market is characterized by consumer demand for easy and convenient payment modes that consume minimum time as against traditional banking channels. Furthermore, surging demand for high-end mobile devices and integration of technologies such as RFID, Bluetooth and NFC across POS (Point of Sale) terminals is expected to significantly contribute to industry growth. Additionally, secure and easy payment processes and enhanced user experience offered by mobile wallet solutions are expected to fuel global demand.
Further key findings from the study suggest:
- The global mobile wallet market was estimated to comprise 230 million users in 2013, which is expected to reach 1,420.8 million users by 2020, growing at a CAGR of 30.0% from 2014 to 2020.
- Retail was the largest application area in 2013 and accounted for over 40% of the overall market. This can be primarily attributed to initiatives to equip retail stores with easy mobile device payment options along with integration of POS terminals and various loyalty schemes, which result in better customer engagement. In public transportation, mobile wallet facilitates the purchase of tickets for air, rail, bus, and other forms of transport in an efficient manner.
- Asia Pacific accounted for over 30% of the global market volume in 2013. Furthermore, the region is expected to witness the fastest growth over the next six years, which can be primarily attributed to the surge in number of smartphone and internet users.
- Key industry participants include American Express Inc., BlackBerry, Apple Inc., First Data, Google, ISIS, MasterCard, PayPal Inc., Samsung and Visa Inc. Developing easy-to-use and secure mobile wallet solutions delivering enhanced user experience is expected to be a critical success factor for gaining market share. View report.
