Mobile Payment Technologies Market Size, Share & Trends 2031

Report Description

The global mobile payment technologies market size was around USD 39.8 million in 2021 and is expected to surpass USD 255.3 million by 2030, expanding at a compound annual growth rate (CAGR) of 31.2% during the forecast period, 2022–2030. The market growth is attributed to the increasing customer preference for fast and hassle-free payment option along with the rapid growth in the use of mobile payment for paying bills and online shopping.

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Mobile payment is an online payment mode using portable electronic devices such as mobiles, tablets, and others. This payment mode is widely used for paying bills, transfer money, ticket bookings, and payment at retail stores. Customers normally make mobile payment by using scanning portal, a Quick Response (QR) code. Mobile payment is an alternative payment method that avoid the need for using conventional payment methods such as cash or card. Mobile payment technologies offer convenient, easy, and fast payment services to customers, which further ensures safety advantages and additional privacy for users. Mobile payments are considered to be more secure and easy to access for payment as compared to card payment. This cashless payment method provides services for not only customers but also a range of business units including retail stores, banks, and financial organizations. The wide popularity of mobile payment method for various financial transaction applications is due to the increasing number of smartphone users and their access to high-speed connectivity network for wireless devices. Major banks and telecommunication companies are launching their own mobile payment applications to ensure hassle-free payment services for customers.

COVID-19 Impact

The market report finds that the COVID-19 pandemic had impacted positively on the global mobile payment technologies market as people preferred to use cashless payment method to prevent virus contraction through currencies. During the pandemic, people were instructed to follow social distancing to avoid the virus transmission from hosts to others. As a result, customers often opted for digital payments for buying products mostly from e-commerce platforms due to the fear of spreading the virus through person-to-person payment. The pandemic brought behavioral changes in customers and their shopping methods, which pushed to encourage the habit of using mobile payments in daily routine. The post-COVID-19 scenario is likely to open up credible growth opportunities for the market due to the rapid growth in adaptation of mobile payment technologies, especially by financial institutions around the globe. The wide introduction of mobile payment technologies is expected to boost contactless payment methods in the near future.

Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global mobile payment technologies market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Major Drivers:

Increasing preference for fast and easy-to-access transaction services

Mobile payment solutions offer fast and convenient transaction service for customers as well as businesses. This transaction service is growing rapidly around the globe due to the rising adoption of cashless payment system across businesses including grocery retailers, e-commerce platforms, and others. Moreover, the rapid adoption of cashless payment by major e-commerce and traditional businesses further boosts the market due to easy access of transaction for customers.

Exciting rewards, cashbacks, and exclusive offers to boost market growth

Major mobile payment technologies are offering exciting offers in form of rewards and cashbacks to gain the loyalty of customers, which plays a crucial role in accelerating the market. Some payment service providers are offering exclusive offers and rewards for end-users to increase in regular use of their payment services. For instance, Dreamplug Technologies Pvt Ltd. (CRED) is offering exciting rewards and cashbacks on luxury vacations and for paying credit card bills. Similarly, Google Pay is also offering exclusive offers and scratch cards on paying for top-ups and money transfer. Using such strategies, the use of mobile payment increases its popularity among customers which helps to boost the mobile payment market growth.

Existing Restraints:

Rising security concerns about mobile payment system

Rising security concerns about the mobile payment technologies is one of the major factors that can hamper the global mobile payments market in the coming years. The rising cases of high-profile data breaches around the globe can put a major setback to the market growth in the near future. These data breaches include leaking of personal data of customers, which can be used by anonymous for some illegal work. Due to personal data security concerns, some customers are still preferring debit card or credit card for payment over the mobile payment method, which can hinder the overall market growth.

Emerging Opportunities:

Increasing tech-savvy youth generations around the globe

The presence of a large pool of younger population and their increasing understanding about usage of several digital technologies, especially smartphones is likely to create lucrative opportunities for market players. This increasing use of payment method among the youth population is largely influenced by the rapid introduction of fast and emerging internet data facilities. Mobile payment technologies give option to make payments from different wireless devices, which is an easy and convenient task for tech-savvy youths.

Scope of the Report

The global mobile payment technologies market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Remote payment segment to expand at a significant growth rate

Based on payment method, the global mobile payment technologies market is bifurcated into remote payment and proximity payment. The remote payment segment dominated the market by holding more than 56% revenue share of the market in 2021 and is expected to expand at a significant growth rate during the projected period. The segment growth is attributed to the increasing use of remote payment method for e-commerce and other retail stores. Remote payments are types of payment methods that use electronic devices from different locations via internet. In this method, customers are not required to be in the contact with Point of Sales (POS) devices for payments, only the mobile devices need to be nearby the terminal. The rising use of e-wallet payment option, which requires customers to use only one tap further boosts the segment. For instance, companies such as Freecharge, Amazon, and Paytm have launched their e-wallets for fast and ease payment option for end-users. The remote payment option offers security measures such as two-factor authentication systems with using different methods including biometrics, OTPs, and other security measures.

The proximity payment segment is expected to expand significantly during the forecast period. Proximity method is another type of payment method where the payer and the payee are in the same location and the payment is made through a proximity technology such as QR codes, near field communications (NCF), and Bluetooth connectivity. The QR method has gained a lot of customer attraction in recent years due to its ease of scanning and payment process. The growing adaptation of QR payment method by major retailers and grocery shops is another key factor fueling the segment. The NFC is gaining its popularity owing to the rapid introduction of innovative NFC technology such as SIM-based NFC by major telecommunication companies for easy payments. Some major players such as Bharti Airtel, Vodafone Group, and AT&T have already launched different types of innovative NFC technologies.

Money transfer and payments segment to register a considerable CAGR

On the basis of purchase type, the global market is segregated into merchandise & coupons, money transfers & payments, airtime transfers & top-ups, travel & ticketing, and others. The money transfer & payments segment is projected to register a considerable CAGR during the forecast period owing to the increasing use of mobile payment technologies for money transfer and payments. On the other hand, the airtime transfer & top-ups segment is anticipated to account for a major market share in the coming years due to the rising use of mobile payments for top-ups and airtime transfer. This segment offers effort-less payment option for top-ups. Top-ups is the simple way to send phone credit to someone’s family and friend’s prepaids or postpaid mobile phones so they can send messages, or call, or surf the internet depending on their SIM company.

The travel & ticketing segment is expected to register a major market revenue during the projected period. Using ticketing facilities, customers can easily avoid the long process of booking and payment issues as it offers them easy payments and bookings from different mobile payment applications. For instance, Paytm provides an option to book tickets for movies, train, bus, metro, and flight. Similarly, Dreamplug Technologies Pvt Ltd. (CRED) provides the luxury vacation bookings and hotel bookings for customers with hassle-free payment option.

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BSFI segment to expand at significant rate

Based on end-user, the global mobile payment technologies market is segregated into media & entertainment, retail & e-commerce, hospitality & tourism, IT & telecommunications, BFSI, education, healthcare, and others. The Banking, Financial Services, and Insurance (BSFI) segment dominated the market with a revenue share of more than 21% in 2021. Major banks around the globe are timely introducing mobile payments for better costumer experience, which help to boost the segment in the market. Moreover, the surge in online banking and digitalization is another key driver of the segment. For the banking sector, the mobile payment technologies enable instant payments without following the long banking process. Businesses are also collaborating with different payment technologies to allow easy solutions for wealth and asset management. Moreover, the insurance sector is also increasingly adopting easily accessible payment solutions for customers. The rapid expansion of banking and finance sectors, especially in developing countries is further boosting the BSFI segment.

The retail & e-commerce segment is expected to expand at significant CAGR during the forecast period. The rapid expansion of e-commerce platforms, especially in developing countries due to the rising number of smartphone users plays a crucial role in the segment growth. It is easy task for smartphone users to pay using mobile technologies for shopping on e-commerce platforms. Furthermore, the increasing adopting of mobile payment technologies among retailers for better customer experience further fuels the segment.

Asia Pacific to dominate the market

In terms of regions, the global mobile payment technologies market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific dominated the market with the sizeable revenue of more than 32% share in 2021 and the trend is expected to continue during the projected period. The regional market growth is largely attributed to the growing adaptation of mobile devices such as smartphones and tablets among a large pool of the regional market. The regional mobile payment industry is an emerging industry in developing countries. India and China are the two major countries that witnessed the sharp rise in use of mobile payment technologies by customers and businesses including grocery retail stores.

North America is expected to expand at significant CAGR during the forecasting period owing to the early acceptance of advanced cashless payment methods as well as the rapid growth of e-commerce platforms and brick and mortar stores, especially in the US market. Moreover, the presence of major global key players in the region further accelerates the regional market growth. Major customers in this region are tech-savvy and prefer to use mobile payment as the easy payment method.

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