"Exponential growth of mobile internet application and advancement of 3G and 4G networks is anticipated to drive the market"
The global mobile wallet market size was valued at USD 592.45 billion in 2015. The service saves the consumer payment credentials and makes them available at the Point of Sale (POS) to enhance the customer experience. The technology serves the dual purpose such as financial management and transfer of funds services. The payment technologies have undergone significant change with introduction of NFC and mobile wallet services coupled with the integration of POS terminals and mobile devices.
The key players are collaborating with banks, technology vendors and payment service providers to develop the required infrastructure for enhancing the consumer experience. Furthermore, Value Added Service (VAS) has been the acting as an enabling force driving the industry demand and cashless payments. The key players in the market have introduced value added features in their offerings to differentiate the business from the competitors. Some of the features include mobile vouchers & services, digital loyalty schemes, dynamic currency conversion, real-time fraud screening and digital charity box.
Lack of privacy and security threat over the mobile payments might result in affecting the segment demand. The lack of government regulations for governing the cashless payments also expected to restrain the industry demand over the forecast period.
Global Mobile wallet Market, 2014 - 2024 (USD Billion)
"Proximity product type is expected to portray highest growth over the forecast period"
Remote mobile wallet segment has generated the highest revenue in 2014 and is expected to maintain the dominance throughout the forecast period owing to the ability of accessing the cashless payment through the communication networks.
Proximity product type is expected to have highest growth rate over the forecast period with the increasing penetration of NFC enabled smartphones across all the regions. The product flexibility for converting the devices to NFC-enabled is expected to lead the growth.
"Government initiatives for modernizing the transportation and adoption of advanced technology has contributed public transportation application to have highest growth over the projected period"
The application segment can be categorized into restaurant, retail, vending machine and public transportation. The retail application is estimated to dominate the business in terms of revenue in 2015. Proliferation of smartphone and increasing need for better consumer experience is expected to propel the demand.
The ability of vending machine to make cashless payment provides an opportunity for consumers to pay contactless and hence encourages the consumer for purchasing frequently. NFC integrated devices offers better consumer experience with secure payment methods and encourage the retailers to incorporate the technology. Increasing usage of vending machines in emerging countries like India, Indonesia, and China are expected to improve the demand for the application segments.
The retailers are increasing gaining the potential benefits of accepting transactions using mobile wallet. The retailers incorporating the cashless payment technology with digital marketing are envisioned to attain the consumer data opportunities and loyalty. Furthermore, low processing fees and faster check out through the NFC technology are also expected to achieve cost and operational efficiency. The technology help the retailers in offering special promotions and in tracking the loyalty rewards for improving the relations to mobile customers.
"Increasing penetration of NFC enabled mobile phones in Asia Pacific has contributed to significant growth from 2016 to 2024"
The Asia Pacific region is expected to remain the key revenue generating region, accounting for highest share by 2024. Favorable consumer preferences along with the presence of large number of service providers in the region are few factors accounting for the significant growth. The transitions from analog to digital systems are also anticipated to be one of the factors for growth over the forecast period. Increasing demands from the countries such as China and India owing to changing consumer needs and disposable income are also expected to witness significant growth over the forecast period.
Furthermore, the government driven initiatives such as Make in India and Digital India in the country is anticipated to boost the penetration of smartphones and other consumer electronics resulting in growing demand for the industry.
The European market is expected to witness major developments in various applications which include NFC-based transactions, ticketing and access control over the forecast period. Rising number of NFC tags implementation in the industry has led to the increased use of NFC readers. Public transportation and restaurants application segment is accounted for the major share of the overall European market.
"Building trust among consumers is expected to increase the adoption rate"
The industry players are constantly investing in R&D to develop the innovative payment platform for developing the new improved technology and gaining the market share. The key industry competitors include Apple Inc (U.S), American Express Company (U.S), Alipay (China), Bharti Airtel Limited.
Avail customized purchase options to meet your research needs:
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.