Mobile Wallet Market Outlook by Type (Proximity, Remote), Application (Retail & E-Commerce, Hospitality & Transportation, Banking, Vending Machine), Technology (Near Field Communication, QR Code, Text based/ Short Message Service, Digital Only) - Industry Latest Trends and growth Forecast, 2022-2030

Market Overview

The global mobile wallet market was valued at $1,568 billion in 2021, and it will grow at a CAGR of 23% during 2021–2030, to reach $10,097 billion by 2030. This is attributed to the convenience offered to consumers by this technology to make transactions from any location. It facilitates consumers with managing their payment accounts easily, with quick funds transfer.

Additionally, these wallets are simple to use and offer convenience to users since they do not require any registration process. They can simply be accessed through internet banking and credit or debit cards. Furthermore, due to the ability to get real-time information on transactions and funds, they have attracted a host of retailers and businesses to adopt them and simplify their monetary transactions for business deals. With a greater accessibility of smartphones and internet across the globe, the market will keep growing in the future.

Proximity Type Will Witness Faster Growth in Market

Through the use of mobile-proximity payment and near-field communication, the mobile wallet technology offers convenience; therefore, the proximity category will witness around 24% CAGR during the forecast period. This technology provides individualized services for online shopping and payment needs. NFC-enabled devices make it easier for customers to make purchases at the closest point of sale (POS), without having to carry cash or wait in a line for a long time. Hence, customers' convenience in managing and accessing their payment accounts creates an opportunity for the market to expand.

In this regard, the low cost of smartphones and the integration of the NFC technology into them and POS terminals will have a beneficial impact on the development of the mobile wallet business in the near future.

QR Code Technology Garnered Largest Share

QR code scanners are widely used for cashless transactions across the globe, as QR codes allow people to initiate transactions and accept and transfer payments. This real-time platform facilitates the exchange of necessary information in seconds, which is why it holds a market share of around 47%.

The adoption of the QR code technology is boosted by the rise in smartphone penetration and increase in the customer demand for the simplicity, which can be achieved by scanning the unique payment code of sellers. The widespread acceptance of QR codes has been facilitated by their growing integration into POS systems and the expansion of high-speed internet access.

Moreover, corporate employees are turning to small to big cashless transactions. Almost all retailers, small or large, now have an access to a QR code scanner, which facilitates transactions on a real-time basis. This technology has the ability to get the username and other information in an instant. A large number of retailers are digitalization their payment methods, to ensure transparency to customers during transactions.

Near-field communication is the second-largest shareholder in the market. This technology facilitates payments without swiping the credit or debit card, if the contactless symbol is present on the physical card. This technology offers customers the convenience of making the payment by just tapping the card on the POS terminal.

Retail and E-Commerce Applications Dominate Market

The retail and e-commerce category garnered the largest market share, of around 33%, in 2021. This was majorly due to the growing acceptance of mobile wallets among retailers and online channels. Retailers are focusing on contactless payment technologies in order to gain consumer purchase activity data in the real time.

Retailers who use cashless or contactless payment methods for digital marketing can increase customer loyalty and convenience. Additionally, the NFC technology improves operational efficiency through faster checkouts and low processing costs. The technology helps shops and e-commerce enterprises offer special discounts and track loyalty incentives, for improving relationships with customers using mobile phones. These days, even street vendors, especially those stationed in major business hubs, have QR codes, in order to allow customers to pay without physical cash.

A completely new dimension is provided by mobile wallets to retailers to enhance their commercial presence. Mobile devices give clients a simpler method to pay, while also opening up a new line of communication for businesses and financial institutions with their clientele.

Furthermore, mobile devices make it simple to send and receive information regarding promotional offers and track the payment history. Moreover, the ability to interact with customers about promotional offers that are practical and more relevant to their interests is offered to retailers and financial institutions by mobile connections.

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Regional Outlook

Asia-Pacific dominated the market, majorly due to the growing adoption of smartphones and the internet. Moreover, with the rising 5G penetration across the region, the connectivity and speed of the internet are enhancing.

The capacity of mobile wallets to store credentials for making payments, as well as information unrelated to payments, is helping them gain traction, since they make it easy to handle payments, take part in loyalty programs, track transactions, and enjoy other advantages. Additionally, carrying cards and other financial documents is no longer necessary. The user can keep a track of their transactional history by using the payment-related credentials, such as credit/debit card numbers and bank account information, as well as non-payment-related information, such as details of loyalty cards and promotional tickets.

Various platforms, such as Google Pay, Paytm, and Phone Pe, provide cashbacks and discounts, alongside complete transactions. Users are attracted by cashback offers and loyalty discounts offered by various mobile wallet providers.

China holds a major mobile wallet market share, with more than half a billion people there expected to pay through this technology this year. The Chinese market is dominated by large players, including Alipay and WeChat Pay, the platforms of which are widely used by store owners, restaurant owners, and e-commerce platforms. The usage of credit cards had never been widely established in a nation where many small businesses cater to clients. This generated a leapfrog effect, as businesses moved straight from cash to payment apps.

In APAC region, India is expected to witness the fastest growth during the forecast period, majorly due to the Indian government’s focus on digital transactions. Additionally, the market for mobile wallets is being presented with tremendous prospects by the growth of the e-commerce sector in emerging economies. To give their customers a seamless payment experience, e-commerce players, including Flipkart, Ola, Uber, and MakeMyTrip, are working to offer new services and making significant investments to create their own mobile wallets. Additionally, the fierce market rivalry and growing digitization rate are pushing financial service providers to create client-focused products.

Region-wise, North America is the second-largest market. The most-prominent mobile wallet users in North America are telecom providers, device manufacturers, banks, and tech firms. Regional banks are striving to enhance their clients' banking experiences, by providing convenient transactions.

Europe is the third-largest shareholder in the market due to the growing popularity of this payment mode for online shopping. Customers are preferring secure and hassle-free payment methods, which is driving the market growth. Moreover, due to the rapid digitalization and the development of novel products, the banking sector is undergoing constant changes. Traditional banks are focused on the integration of mobile technologies to facilitate payments and boost client retention as they contend with fierce competition from burgeoning new fintech businesses.

Key Players in Mobile Wallet Market Are:

• Amazon Web Services Inc.
• PayPal Holdings Inc.
• Mastercard Incorporated
• Visa Inc.
• Samsung Electronics Co. Ltd.
• Google Inc.
• Alipay

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Proximity
• Remote 

Based on Application

• Retail & E-commerce
• Hospitality & Transportation
• Banking
• Vending Machine

Based on Technology

• Near Field Communication
• QR Code
• Text based/ Short message service
• Digital Only

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Spain
  • Italy
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia