Mobile Payment Market By Payment Type (Proximity, Remote), By Transaction Mode (Mobile Web Payments, Near-Field Communication, SMS/Direct Carrier Billing), By End User (Personal, Business), By Purchase Type (Airtime Transfer and Top-ups, Money Transfers and Bill Payments, Merchandise and Coupons, Tr

Mobile Payment Market Valuation – 2024-2031

Seamlessly merging smartphones and online wallets is enabling mobile payments to unlock frictionless on-the-go transactions, fueling market growth. Thus, the widespread availability and affordability of smartphones contribute to the growth of the mobile payment market. According to the analyst from Market Research, the mobile payment market is estimated to reach a valuation of USD 24.28 Trillion over the forecast by subjugating the revenue of USD 2.73 Trillion valued in 2023.

At the same time, widespread adoption of contactless technology along with continuous improvements in security features and technologies skyrocket the sales of mobile payment solutions. This current trend of the emergence and popularity of super apps enables the market to grow at a CAGR of 31.41% from 2024 to 2031.

Mobile Payment MarketDefinition/ Overview

Mobile payment is defined as the use of a mobile device, such as a smartphone or tablet, to conduct financial transactions. This involves transferring funds, paying for goods and services, and conducting other monetary transactions via mobile applications or other technology. To enable users to securely manage and transfer money, make purchases, or carry out financial operations using their mobile devices, a mobile payment application is a software program that is loaded on a mobile device.

Furthermore, mobile payment helps to build the digital economy by promoting cashless transactions and eliminating dependency on physical currency. This change improves the efficiency, openness, and traceability of financial transactions, which benefits both businesses and consumers.

How Does Sales of Smartphones Influence Growth Of The Mobile Payment Market?

The market of mobile payments is driven by the rising accessibility of smartphones and the consumer demand for convenience. Also, the rise in smartphone usage facilitates connecting everyone, from tech-savvy urbanites to unbanked rural populations for enabling smooth and convenient financial transactions, thereby driving seamless interactions in the global financial landscape.

Growing concerns about safe distance hygiene and the generation of paper waste are shifting the focus from traditional cash to a more simplified payment method. Thus, the growing inclination toward cashless transactions is the latest trend emerging as a cleaner and more efficient alternative in the financial ecosystem. Thereby, creating unlocking new doors of opportunities for the mobile payment market.

The growing popularity of online purchasing or e-commerce provides fertile ground for the growth of mobile payments. In addition to this, the integration of cloud computing, blockchain, mobile payment networks, QR codes, biometric authentication, near field communication (NFC) each play a crucial role in making the tap-and-go transactions convenient. Therefore, the demand for safe, speedy, and seamless financial transactions within the e-commerce industry is likely to increase the consumer base for mobile payments.

Furthermore, the confluence of technological developments acts as a pillar, steadily growing the mobile payment industry and pushing it into new areas. The creative discoveries function to influence the trajectory of the mobile payment ecosystem and contribute to its ongoing progress.

Will Risks Related to Data Security Restrain the Expansion of Mobile Payment?

Security, data privacy concerns, and interoperability issues are some of the primary obstacles affecting the growth of the mobile payment market. The requirement for personal data for further usage and sharing during the entire transaction process is restraining consumers from using mobile payment solutions, highlighting the need for privacy and tight security features. These problems increase trust issues, preventing the widespread adoption of mobile payment alternatives.

Lack of awareness and knowledge about the application and importance of mobile payment solutions is one of the major factors challenging the wide-scale adoption of this latest development across developing or remote regions. Infrastructure limitations, such as unequal access to internet connectivity and smartphones in specific places, create a digital gap that impedes broader participation in the mobile payment ecosystem. The initial investment and accessibility challenges are hindering the mobile payment market.

Furthermore, the smooth functioning of mobile payments is hindered by the complications and expenses associated with integrating them with legacy systems and traditional financial infrastructure. The incorporation of modern technologies like biometrics and blockchain further complicates the technological environment, thereby spurring a large commitment of time and knowledge impacting the growth opportunities of the market.

Category-Wise Acumens

How are Consumer Preferences and Online Shopping Trends Impacting the Adoption of Mobile Web Payments?

According to Analysis, mobile web payment is estimated to hold the largest market share in the transaction mode segment during the forecast period. Convenience, familiarity, and flexibility in payment methods are some factors attributing to the dominance of mobile web payment transactions in the market.

The exponential rise of e-commerce and online platforms is significantly raising the demand for payment methods that are both convenient and secure in online transactions. Thus, mobile web payments are emerging as a leader in fulfilling these objectives, providing consumers with a familiar and accessible way to perform transactions while shopping online.

Furthermore, the flexibility to accommodate a wide range of consumer choices regarding payment methods is mushrooming the application of mobile web payments. Also, its compliance with other payment alternatives, such as card details, and e-wallets, is likely to enable the consumers to opt for the best mobile web payment method as per their needs.

Which are the Key Factors Propelling the Use of Remote Payment?

The remote payment segment is projected to hold a major share of the mobile payment market over the forecast period. The wide range of applications, convenience, and strong security protocols are positioning it as a key segment in the evolving digital transaction landscape.

Despite the ease and awareness regarding proximity payment methods, the inclination toward tap-and-go transactions or remote payment is stirring up as a result of its versatility, convenience, and lower chances of robbery. The availability of ease in smooth online shopping, bill payments, money transactions, and subscriptions will further enhance the adoption of remote payment. Thus, the growing consumer base opting for this mode of payment is creating lucrative opportunities for remote payment systems.

Furthermore, banking apps, e-commerce websites, and other online services are just a few examples of the latest digital platforms revolutionizing the spectrum of remote payments.

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Country/Region-wise Acumens

How will a Significant Inclination toward Mobile Payment Influence the Market in North America?

According to Analyst, North America is anticipated to dominate the mobile payment market during the forecast period owing to mature market dynamics in the region. Also, the integration of blockchain, biometric authentication, NFC, and other advanced solutions in smartphones is increasing their use in day-to-day activities such as financial transactions after shopping, billing, and recharging. The tight security features offered by smartphones are a major factor bolstering the growth of mobile payment in the region.

With the rising establishment of financial infrastructure in North America, there is a surge in the requirement of secure and safe financial transactions, creating prospects for the mobile payment market. Prioritizing customer convenience and efficiency during the checkout and rewards procedures emphasizes the need for a seamless connection with current purchasing habits and loyalty programs.

Furthermore, niche markets including in-app purchases, contactless tickets, and peer-to-peer payments are expanding in North America. For improving user experience and security, the integration of new technologies like voice payments and biometrics is on the rise.

Will the Evolving App Ecosystem Turn Asia Pacific into an Epicenter of Growth for the Mobile Payments Market?

Asia Pacific region is estimated to be the most opportunistic region for the mobile payment Market during the forecast period. The market in this region is expected to exhibit rapid growth due to explosive smartphone penetration among unbanked or underbanked populations, creating a vast new user base. Mobile wallets play an important role in enabling access to vital financial services such as remittances, microloans, and savings, hence promoting financial inclusion among underserved people in this region is a reward for the market. In addition, the integration with online shopping platforms and delivery services increases mobile payment usage for a variety of transactions in nations like China and India.

Furthermore, the emergence of integrated super-app ecosystems, such as Paytm and WeChat Pay, fosters mass adoption by providing a comprehensive digital lifestyle that encompasses texting, social networking, and payment.

Competitive Landscape

Mobile payment is a competitive battleground where tech behemoths, financial retailers, and regional powerhouses are constantly battling to offer the best solutions that will suit the customers’ needs. This is a tight competition that is fueled by persistent innovation, a laser focus on convenience and security, and a race to grab specific user demographics.

Some of the prominent players operating in the Mobile Payment Market include

Apple Pay, Google Pay, PayPal, Visa, Mastercard, Alipay, WeChat Pay, M  Pesa, Paytm, PhonePe, Stripe, Square, Klarna, Affirm, Revolut, Monzo.

Latest Developments

• In December 2023, Apple Pay collaborated with Hyundai Card to launch in South Korea, marking the platform’s first foray into the Northeast Asian market. This approach seeks to leverage the country’s high smartphone penetration and increasing use of contactless payments.
• In November 2023, Mastercard and Visa announced a collaboration to create a single QR code standard for contactless payments throughout Europe. This program attempts to simplify QR payments and increase usage among merchants and customers alike.
• In November 2023, Google Pay released its “Tap to Pay” function in the United States, allowing Android users to accept contactless payments on their smartphones without needing additional hardware. This move is expected to disrupt the point-of-sale (POS) market while benefiting small enterprises.
• In November 2023, Tencent collaborated with Grab, Southeast Asia’s top ride-hailing service, to incorporate WeChat Pay onto its platform. This agreement broadens WeChat Pay’s reach in the region, catering to an increasing number of Chinese tourists and businesses.

Report Scope

Mobile Payment Market, By Category

Payment Type

• Proximity
• Remote

Transaction Mode

• Mobile Web Payments
• Near- Field Communication
• SMS/Direct Carrier Billing
• Others

End User

• Personal
• Business

Purchase Type

• Airtime Transfer and Top-ups
• Money Transfers and Bill Payments
• Merchandise and Coupons
• Travel and Ticketing
• Others

Application

• Media & Entertainment
• Energy & Utilities
• Healthcare
• Retail
• Hospitality & Transportation
• Others

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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