Mobile Payment Market - By Technology (Near Field Communication (NFC), Direct Mobile Billing, Mobile Web Payment, SMS, Interactive Voice Response System, Mobile App, Others), By Type (B2B, B2C, B2G), By Location, By End Use, Forecast 2023 – 2032

Mobile Payment Market - By Technology (Near Field Communication (NFC), Direct Mobile Billing, Mobile Web Payment, SMS, Interactive Voice Response System, Mobile App, Others), By Type (B2B, B2C, B2G), By Location, By End Use, Forecast 2023 – 2032

Mobile Payment Market Size

Mobile Payment Market size is valued at USD 965.9 Billion in 2022 and is estimated to register a CAGR of over 14.5% between 2023 and 2032. The exponential rise in smartphone ownership globally serves as a fundamental catalyst propelling the mobile payment industry expansion. With a growing number of people owning smartphones, the market's potential user base has vastly expanded. Smartphones act as the gateway to mobile payment applications, enabling users to conduct transactions swiftly and securely. This widespread ownership creates a vast audience for mobile payment providers, driving increased adoption as users embrace the convenience of digital transactions via their handheld devices.

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The rising digitization of payment services is a key factor driving the mobile payment market growth. As traditional payment methods increasingly shift to digital platforms, consumers are becoming more accustomed to cashless transactions. This trend has propelled the adoption of mobile payment apps and services, offering convenient, secure & efficient ways to make payments. The ease of use and integration of mobile payment solutions into everyday activities further encourage consumers and businesses to embrace this digital payment revolution.

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Security concerns pose a significant challenge to the mobile payment market growth. As digital transactions become more prevalent, the risk of data breaches, identity theft, and fraud increases. Users worry about the safety of their financial information, affecting their trust in mobile payment systems. Addressing these concerns requires robust encryption, authentication methods, and cybersecurity protocols. Continuous efforts to enhance security measures are crucial to instilling confidence in consumers and promoting widespread adoption of mobile payment technologies.

COVID-19 Impact

The COVID-19 pandemic has significantly accelerated the adoption of mobile payment solutions. Concerns about physical contact with cash led to a surge in contactless payments, facilitated by mobile apps and digital wallets. Consumers, businesses, and even governments encouraged the use of mobile payments to minimize virus transmission. This shift in behavior not only enhanced convenience but also fostered a safer and more hygienic payment environment, leading to widespread acceptance and further growth of the mobile payment industry.

Mobile Payment Market Trends

Increasing investments in AI for fraud detection is a key factor driving the market growth. Businesses are dedicating substantial resources to develop sophisticated AI systems capable of detecting and preventing fraud in real-time. For instance, in August 2023, Paytm stated, in its latest annual report, that it is investing in Artificial Intelligence (AI) to develop an Artificial General Intelligence software stack. Through this initiative, the firm aims to serve the market and establish a sustainable & profitable business. This AI system aims to assist financial institutions by identifying potential risks and frauds. Additionally, it will safeguard them from emerging risks resulting from advancements in AI technology.

Mobile Payment Market Analysis

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Based on location, the mobile payment market is categorized into remote payment and proximity payment. The remote payment segment held a market share of around 60% in 2022. Convenience remains a driving force behind the surge in remote payments. The ability to make transactions from anywhere & at any time appeals to consumers' need for hassle-free financial interactions. Whether it is online shopping, bill payments, or services, the ease of completing transactions without physical presence enhances user experience. With the ubiquity of smartphones and improved internet connectivity, consumers increasingly opt for the convenience of mobile payment apps, spurring the widespread adoption of remote payment methods for various transactions and purchases.

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Based on end use, the mobile payment market is divided into BFSI, healthcare, IT & telecom, media & entertainment, retail & e-commerce, transportation, and others. The BFSI segment held a dominant market share of around 23% in 2022. The launch of digital payment applications by banks is propelling the BFSI (Banking, Financial Services, and Insurance) sector in the mobile payment industry. These applications empower users to conduct secure and convenient transactions, enhancing customer engagement. For instance, in August 2023, Canara Bank introduced its UPI interoperable digital rupee application, enabling users to make digital currency payments by scanning the merchant's UPI QR code. By integrating this functionality, users can now scan merchant UPI QR codes using the app and complete payments using digital currency. This trend fosters innovation in the BFSI sector, driving technological advancements & ensuring a competitive edge, ultimately propelling the entire industry.

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Asia Pacific led the global market with a major share of around 46% in 2022. Government initiatives in the Asia Pacific region have been pivotal in driving the mobile payment market growth. Many governments have actively promoted digital payments as part of their broader financial inclusion strategies. Through regulatory support, awareness campaigns & subsidies, governments have encouraged both consumers and businesses to adopt mobile payment methods. These initiatives not only facilitate convenient transactions but also contribute significantly to reducing the reliance on cash, fostering a more efficient and secure financial ecosystem across the region.

Mobile Payment Market Share

Major players operating in the mobile payment market are

• Apple Inc.
• Google LLC
• Mastercard Inc.
• Paypal Inc.
• Samsung Group
• Visa, Inc.
• WeChat (Tencent Holdings Limited)

Google and Apple are dominating the mobile payment industry with a prominent market share. The mobile payment industry is intense with key players continuously innovating to offer secure, convenient, and user-friendly solutions, driving market growth and shaping industry standards.

Mobile Payment Industry News

• In October 2023, Global Payments Inc. and Visa launched Mobile Tap, a payment solution that enables Singaporean sellers to accept payments using smartphones, thus eliminating the requirement for additional hardware. Utilizing Visa’s Tap to Phone (TTP) technology, this solution is accessible to merchants with NFC-enabled Android devices via a designated app. Consequently, traditional point-of-sale terminals are rendered unnecessary, simplifying the payment process for merchants and customers alike.

The mobile payment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion), transactional value (USD Billion) and transactional volume (million) from 2018 to 2032, for the following segments

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By Technology

• Near Field Communication (NFC)
• Direct Mobile Billing
• Mobile Web Payment
• SMS
• Interactive Voice Response System
• Mobile App
• Others

By Type

• B2B
• B2C
• B2G
• Others

By Location

• Remote Payment
• Proximity Payment

By End Use

• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Thailand
  • Indonesia
  • Philippines 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

What is the size of the global mobile payment market?

Market size for mobile payment was valued at USD 965.9 Billion in 2022 and is estimated to register a CAGR of over 14.5% between 2023 and 2032, backed by the exponential rise in smartphone ownership globally.

How will remote payment segment add to mobile payment industry value?

The remote payment segment held a market share of around 60% in 2022, owing to the ability to make transactions from anywhere & at any time for hassle-free financial interactions.

What is the revenue share held by Asia Pacific mobile payment market?

Asia Pacific led the global mobile payment industry with a major share of around 46% in 2022 and will continue to show growth trends, backed by the government initiatives that actively promote digital payments as part of their broader financial inclusion strategies.

Which companies define the competitive landscape of mobile payment business?

Apple Inc., Google LLC, Mastercard Inc., Paypal Inc., Samsung Group, Visa, Inc., and WeChat (Tencent Holdings Limited) among others.