MOBILE PAYMENT TECHNOLOGIES MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Restraints

1. Lack of consumer interests in adopting new technology is expected to hamper the global mobile payment technologies market growth during the forecast period

Consumer preference is one of the major factors restricting the market growth, typically due to a lack of awareness of specific mobile payment services and features available for particular smartphones. Apart from these factors, consumers are concerned about the security and privacy of mobile wallets due to increasing incidents of cyber-attacks on financial information. According to Coherent Market Insights’ analysis, in North America, 52% of consumers are extremely aware of mobile payment technologies. Despite this awareness, only 18% of them make payments through mobile technologies across the region.

2. Issues regarding network connectivity are expected to restrain growth of the global mobile payment technologies market over the forecast period

Technical difficulties such as network issues or connection failure, power failures, especially in emerging economies such as Africa and Latin America are major factors hindering growth of the market. Thus, consumers from these regions seldom prefer mobile payment technologies and adopt cash or paychecks for payments. Thus, these factors are expected to restrain growth of the global mobile payment technologies market in the near future.

Market Opportunities

1. Incorporation of Internet of Things (IoT) with payment systems can provide major growth opportunities

Internet of Things (IoT) is an evolving technology that helps to send and receive data from Internet-enabled devices. Integration of IoT with payment applications provides a major opportunity for the extension of payment solution offerings and development of robust payment technologies. Moreover, IoT-powered devices can offer secure payments and promise greater convenience for recipients and also for customers.

2. Proactive initiatives by governments are expected to present lucrative business opportunities

Governments are taking proactive initiatives to support digital payment, in order to accomplish goal of a cashless economy. For which, the governments are making necessary regulatory framework changes by providing tax incentives and adopting social-transfer digital payments. Many countries, such as Finland, Italy, and the Netherlands, are planning to implement a national instant payment scheme to replace traditional payment systems. Moreover, the Indian government has taken several initiatives to promote digital innovation and financial inclusion.