The global mobile payments market is projected to grow at a CAGR of 34.5% during the forecast period of 2024-2031, reaching a market size of USD YY billion by 2031 from USD XX billion in 2024.
The Asia-Pacific region is expected to dominate the market, driven by the high adoption of smartphones and increasing penetration of mobile internet. The growth of the mobile payments market is fueled by factors such as the rising popularity of digital wallets, increasing e-commerce sales, and supportive government initiatives promoting cashless transactions. However, concerns over data security and privacy may restrain market growth to some extent.
Increasing Adoption of Digital Wallets Driving Market Growth
The growing acceptance of digital wallets such as Apple Pay, Google Pay, and Samsung Pay is an important trend driving the mobile payments industry ahead. These wallets, which provide convenience, security, and a seamless connectivity to mobile devices, have a large user base. According to a recent survey, more than half of smartphone users in the United States and China intend to use digital wallets for payments by 2022. This trend is expected to continue as more merchants embrace digital wallet payments to suit changing consumer preferences.
Rising E-commerce Sales Fueling Mobile Payment Transactions
The rapid growth of e-commerce, especially mobile commerce, is a major driver of the mobile payments business. Consumers are increasingly using mobile devices to shop online, causing a surge in mobile payment transactions. In 2021, mobile e-commerce sales accounted for more than 70% of all e-commerce sales. This trend is particularly noticeable in emerging economies, where mobile devices constitute the dominant form of internet access. E-commerce behemoths such as Amazon, Alibaba, and Flipkart are promoting mobile payments to increase user experience and loyalty.
Data Security and Privacy Concerns Hindering Market Growth
Despite its many benefits, the mobile payments market's growth may be limited by growing concerns about data security and privacy. Mobile payment transactions contain sensitive financial information, making them an ideal target for scammers. According to a international survey, more than 60% of customers are concerned about the security of their personal and financial information while using mobile payments. High-profile data breaches and cyber-attacks on payment networks have heightened these concerns. To address this issue, mobile payment service providers are investing in advanced security measures such as tokenisation, biometric authentication, and encryption.
Proximity Payment Segment to Lead the Mobile Payments Market
The proximity payment category, which includes point-of-sale transactions using near-field communication (NFC) and QR codes, is expected to account for the vast bulk of the mobile payments business. This market's growth is being driven by the increasing penetration of NFC-enabled smartphones and the expanding network of NFC-compatible payment terminals. According to a market research report, the global proximity mobile payment market is estimated to reach USD XX billion by 2031, growing at a CAGR of YY% over the forecast period.
Major smartphone manufacturers, including Apple, Samsung, and Google, are adding NFC technology into their smartphones, making it easier for customers to make proximity payments. Retailers and service providers are also utilising NFC payment systems to provide faster and more convenient checkout experiences. McDonald's, for example, intended to adopt NFC-based mobile payment acceptance across all of its global locations by 2023.
Asia-Pacific to Dominate the Global Mobile Payments Market
The Asia-Pacific region is likely to lead the mobile payments market throughout the forecast period, thanks to factors such as high smartphone usage, rising mobile internet penetration, and supportive government legislation. China and India are expected to be the region's key growth markets because to their large populations and rapidly expanding digital payment networks.
According to a recent industry report, the Asia-Pacific mobile payment market is expected to grow at a CAGR of YY% from 2024 to 2031, outpacing other regional markets. The region is home to some of the world's top mobile payment services, such as Alipay and WeChat Pay in China and Paytm and PhonePe in India, all of which have considerably boosted market growth.
Recent market trends in Asia-Pacific include technical giants like Alibaba, Tencent, and Google growing their mobile payment services, as well as traditional banks and financial institutions establishing mobile payment solutions to compete with fintech companies.
The global mobile payments industry is intensely competitive, with IT behemoths, banking institutions, and specialised mobile payment service providers vying for market supremacy. Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Alibaba Group Holding Limited, PayPal Holdings, Inc., Visa Inc., Mastercard Incorporated, and Square, Inc. are among the market's leading players.
These companies are bolstering their market position through collaborations, mergers & acquisitions, and product innovation. For example, in 2022, Apple acquired a mobile payments company to broaden its Apple Pay options. Similarly, Visa has worked with local banks and fintech firms in emerging markets to expand its mobile payment options.
The severe competition, paired with the rapidly expanding technological landscape and changing regulatory environment, is redefining the competitive dynamics of the mobile payments industry. Companies who can offer secure, convenient, and imaginative mobile payment solutions will gain a competitive advantage in the market.
The mobile payments market is predicted to expand substantially in the next years, propelled by factors such as greater smartphone use, rising e-commerce sales, and the growing use of digital wallets. The continuous shift to cashless transactions, as well as the increased emphasis on financial inclusion in emerging markets, will fuel market development.
The Asia-Pacific region, led by China and India, is expected to dominate market growth because to its large population, rising smartphone adoption, and favourable government policies. The proximity payment sector is likely to dominate the market due to the rising use of NFC and QR code technology.
To thrive in this rapidly changing business, mobile payment service providers must emphasise product security, user experience, and interoperability. Strategic partnerships, technological advancements, and regulatory compliance will all be crucial to establishing a competitive advantage.
With the right strategies and investments, the mobile payments industry will offer significant growth opportunities for both existing players and new entrants during the predicted timeframe.
Apple Inc.
Google LLC
Samsung Electronics Co. Ltd.
Alibaba Group Holding Limited
PayPal Holdings, Inc.
Visa Inc.
Mastercard Incorporated
Square, Inc.
Tencent Holdings Limited
Amazon.com, Inc.
In February 2024, Google Pay added a new functionality that allows users to make peer-to-peer payments via QR codes.
Visa established a deal with a major African bank in April 2024 to expand its mobile payment services in the region.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)*
5. COMPANY PROFILES
5.1. Apple Inc.
5.2. Google LLC
5.3. Samsung Electronics Co. Ltd.
5.4. Alibaba Group Holding Limited
5.5. PayPal Holdings, Inc.
5.6. Visa Inc.
5.7. Mastercard Incorporated
5.8. Square, Inc.
5.9. Tencent Holdings Limited
5.10. Amazon.com, Inc. (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing Adoption of Digital Wallets
6.1.2. Growing Popularity of Contactless Payments
6.1.3. Rising Integration of Mobile Payments in Apps
6.2. Market Drivers
6.2.1. Rising E-commerce Sales
6.2.2. Supportive Government Initiatives
6.2.3. Increasing Smartphone Penetration
6.3. Market Restraints
6.3.1. Data Security and Privacy Concerns
6.3.2. Lack of Standardization
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY PAYMENT TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Proximity Payment
7.1.1. NFC
7.1.2. QR Code
7.2. Remote Payment
7.2.1. WAP
7.2.2. SMS
7.2.3. USSD
8. BY TECHNOLOGY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. NFC
8.2. QR Code
8.3. WAP
8.4. SMS
8.5. USSD
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Retail
9.1.1. Grocery Stores
9.1.2. Supermarkets
9.1.3. Hypermarkets
9.2. Transportation
9.2.1. Taxi
9.2.2. Metro
9.2.3. Toll
9.3. Healthcare
9.4. Entertainment
9.4.1. Gaming
9.4.2. Ticketing
10. BY REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)*
10.1. North America
10.1.1. US
10.1.2. Canada
10.2. Europe
10.2.1. UK
10.2.2. Germany
10.2.3. France
10.2.4. Italy
10.2.5. Spain
10.3. Asia-Pacific
10.3.1. China
10.3.2. India
10.3.3. Japan
10.3.4. South Korea
10.3.5. Australia
10.4. Latin America
10.4.1. Brazil
10.4.2. Mexico
10.4.3. Argentina
10.5. Middle East & Africa
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. South Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Payment Type:
Proximity Payment
NFC
QR Code
Remote Payment
WAP
SMS
USSD
By Technology:
NFC
QR Code
WAP
SMS
USSD
By Application:
Retail
Grocery Stores
Supermarkets
Hypermarkets
Transportation
Taxi
Metro
Toll
Healthcare
Entertainment
Gaming
Ticketing
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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