Mobile Payment Technologies Market to CAGR of 21.3% till 2027

The Global Mobile Payment Technologies Market, By Type (Proximity Payment and Remote Payment), Type Purchase (Airtime Transfers & Top-ups, Money Transfers & Payments, Merchandise and Coupons, Travel and Ticketing and Others), By End-use Application (Hospitality & Tourism Sector, BFSI, Media & Entertainment, Retail Sector, Health Care, Education and Others)and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 3104.8 billion by 2027, exhibiting a CAGR of 21.3% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.

Overview

Mobile payment is a digital payment technology used for the payment of goods or services and transfers money through smart appliances, typically smartphones and tablets. Mobile payment technology has been offered as an alternative for cash-based transactions. Different technologies are used in mobile payment including near field connectivity (NFC), mobile point-of-sale, and wearable devices. The main objective behind the introduction of mobile payment technology is to avoid the usage of coins, plastics, currency, and paper media such as paychecks, cash, and bank transactions. Mobile contactless technology offers flexibility for service providers (retailers, banks, transport companies) to update over-the-air (OTA) contactless applications to extend payment solution offerings and develop enhanced payment technologies.

The global mobile payment technologies market is estimated to account for US$ 664.19 Bn in 2019 and is expected to grow at a CAGR of 21.3% over the forecasted period 2019-27.

Market Driver

Increasing adoption and penetration of immediate payment systems is expected to boost growth of the global mobile payment technologies market during the forecast period

Digital payment solutions are witnessing significant demand across the globe. Digital payment systems enable consumers to carry out immediate payment with a smartphone. For instance, customers are adopting mobile payment technology due to 24x7 access to payment functionality via smartphones, expanded access channels, immediate funds visibility, and security solutions. Consequently, these factors are propelling growth of the mobile payment technologies market. Moreover, growing adoption of mobile payments technology including the use of various applications and mobile wallets has led to introduction of cashless technology corporations into the payment landscape. Therefore, rising adoption and proliferation of immediate payment options are expected to boost the global mobile payment technologies market growth over the forecast period.

Market Opportunity

Rising integration cloud-based technology with payment options is expected to present lucrative growth opportunities

Growing focus on cloud-based payment solutions has increased significantly the recent past, thereby boosting the adoption of mobile payment technology across the globe. Cloud-based payment technology enables consumers to perform near-field communication (NFC) card emulation without using a hardware secure element (SE) in mobile phones. Furthermore, cloud-based payment solutions offer high levels of security, compliance, and interoperability. Intense competition among non-banking players is expected to compel conventional players to implement cloud-based payment solutions for better agility and enhance business strategies. HCE (Host Card Emulation) and Cloud-based payments have greatly increased the possibilities for banks, telecommunication companies, and others to provide better mobile payment services to their customers. For instance, in 2014, Visa, Inc. and Banco Bilbao Vizcaya Argentaria S.A (BBVA) launched First Commercial Solution for cloud-based mobile payments. Visa’s cloud-based payments specification enables the global expansion of the BBVA Wallet, specifically in the U.S., Chile, Spain, and Mexico.

Market Restraint

Low consumer interest in adopting new technology is expected to hinder the global mobile payment technologies market growth over the forecast period

Consumer preferences are one of the major factors responsible for hindering the growth of the mobile payment technologies market. This is largely due to the lack of awareness of specific mobile payment services and features available for particular smartphones among end-users. Apart from this, consumers are worried about the security and privacy of mobile wallets due to an increasing number of cyber-attacks on financial information. Thus, many consumers prefer traditional payment systems for any payment, which is hindering the growth of this market. According to CMI’s 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. Therefore, consumer interest and awareness are major barriers to the adoption of mobile payment technology. Consumers remain loyal to traditional payment systems and show low interest in picking up new ground-breaking technologies. Consequently, this would hamper growth of the mobile payment technologies market.

Market Trends

MEA Trends

Positive outlook for adoption of mobile payment technology

Growing trend for internet accessibility among end-users via a smartphone is expected to create new opportunities for mobile payment technologies across the region. MEA region is expected to witness a positive outlook mobile payment technology market over the forecast period. This is owing to rising internet and tablet penetration and advancements in technology in the telecommunication sector. Real-time buying is gaining momentum in MEA, which enables companies to develop targeted products & services based on mobile usage patterns. This is expected to create immense opportunities for the mobile payment technologies market in the region. For instance, United Arab Emirates has started a program intended to achieve a cashless economy. Under this program, the use of payroll cards for wages is mandatory and launches a digital payment gateway for government payments.

South America Trends

Rising interment in pioneering payment technology

High investment from mobile payment service providers to deliver advance technologies to the consumers can be seen as one of the major trends leading to the growth of mobile payment technology market in South America. This would help mobile payment technologies market to develop across the region. Furthermore, factors such customized products, in order to meet customer needs, substantial investment from mobile payment service providers, and the relaxation of regulatory policies allowing nonbank providers to offer mobile-payment are the major reasons for the growth of mobile payment technologies market in Latin America.

Competitive Section

Key players operating in the global mobile payment technologies market are PayPal, Inc., Microsoft Corporation, MasterCard International Inc., Apple, Inc., American Express, Co., Google, Inc., Boku, Inc., AT & T, Inc., Visa, Inc., Vodafone Ltd., State Bank of India (SBI), Fortumo, and Bharti Airtel Ltd.

Key Developments

Key players in the market are focused on partnerships and collaborations, in order to gain a competitive advantage market. For instance, in October 2019, Boku Inc., a U.S.-based mobile payment platform, partnered with GoPay to extend mobile payments across Indonesia.
Major companies in the market are involved in product launches, in order to enhance product portfolio. For instance, October 2019, State Bank of India (SBI), an Indian government operated financial body, introduced SBI Card Play, a payment feature based on Host Card Emulation (HCE) to make secure payments using mobile phones.

Segmentations

Market Taxonomy:

By Type

Proximity Payment
- Near field Communication (NFC)
- QR Code Payment
Remote Payment
- SMS-based
- USSD/STK
- Direct operator billing (Credit/debit card-based)
- Digital wallet