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Mobile Wallet Market Size By Type (Open, Closed, Semi-closed), By Ownership (Telecom Operators, Banks, Tech Companies, Device Manufacturers), By Technology (Optical/QR Code, Near Field Communication (NFC), Text-based, Digital Only), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022-2030

  • Report ID: GMI2653
  • Published Date: Sep 2022
  • Report Format: PDF

Industry Trends

Mobile Wallet Market size valued at USD 220 billion in 2021and is projected to expand at around 17% CAGR from 2022 to 2030.
 

The adoption of internet-connected devices is expected to be a key trend facilitating fast-paced business transformation across smart organizations. According to data from Spiceworks, the number of IoT-connected devices is anticipated to increase from 27 billion in 2017 to 125 billion by 2030. This accelerating adoption of IoT devices will proliferate the rate of digital transactions and consequently create a favorable growth environment for mobile wallet app developers worldwide.
 

Mobile Wallet Market

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Mobile wallet providers can aid marketers with versatility, accessibility, and opportunities to engage with consumers in real time. Recently, these entities have been taking varied initiatives such as new service launches to ensure faster and flexible payments. For example, in May 2021, Razor Pay collaborated with Twitter to launch Twitter Tip Jar. This feature was designed to facilitate payments for non-governmental organizations, content writers, and other groups through UPI and other internet banking methods. Developments such as these are adding impetus to the mobile wallet market expansion.
 

Rise in fintech investments to define industry landscape

The fintech industry has been gaining significant traction over the past years, encouraging banks to drive technological investments. For instance, in September 2021, Xendit secured USD 150 million in a Series C funding round. Through this investment, the fintech company developed advanced digital payment value-added services for customers. The mounting investment across the fintech sector will create lucrative opportunities for the mobile money wallet business expansion.
 

Increasing risk of cyber-attacks may hinder the mobile wallet business outlook

Despite the proliferating adoption of digital payment services, the risk of cyber-attacks may create roadblocks to the steady business growth. As per data from the NITI Aayog, over 50% of Indian organizations were affected by cyberattacks such as malware, phishing, ransomware, and denial of services in 2020. Since fintech service provider are also rapidly deploying new technologies and features to address customer demands, they are becoming more exposed to various forms of cyber breaches, which may hamper mobile wallet market trends.
 

Rising number of fintech companies to augment demand for semi-closed mobile wallets

The semi-closed wallet segment crossed USD 150 billion in 2021. The influx of tech players in the fintech landscape is contributing to the popularity of semi-closed mobile wallets. Over one-third of the millennials are choosing to rely solely on bank-free digital payment solutions. This shifting customer preference will encourage tech players to introduce semi-closed mobile wallet offerings, fueling to segmental progress.
 

Mobile wallets to gain popularity across banks to increase customer retention

The mobile wallet market share from banking sector is set to register approximately 15% growth rate through 2030 on account of rapid change in the financial landscape. The need for improved customer experiences is increasing in the banking sector. In line with this, fintech establishments are embracing mobile wallets to enhance customer retention and position payment cards as top wallets.
 

Favorable attributes of optical/QR code-based mobile wallet payments

China Mobile Wallet Market Share, By Technology,

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Mobile wallet brands are relying on optical/QR code technology owing to its cost-effectiveness, high convenience, and other favorable attributes. In emerging nations such as China, transactions through QR-enabled devices are becoming a preferred method of payment, from luxury stores to street vendors. This will further boost the market growth from the optical/QR code segment, which is poised to witness more than 15% gain through 2030.
 

Europe to emerge as a major revenue pocket

Europe Mobile Wallet Market Size, By Region

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Regionally, Europe mobile wallet industry size is estimated to exhibit 16% CAGR till 2030, led by the rapid evolution of the mobile banking landscape. This is credited mainly to the rising competitiveness of mobile wallet brands from international and domestic entities. The NFC (near field communication) technology has also been adopted increasingly in the retail sector, which will further promote the use of digital wallet apps among merchants and foster regional progress.
 

New service launch strategy to stimulate industry expansion

Some of the key participants operating in the mobile wallet market are Amazon.com, Inc., Ant Financial Services Group, Skrill Ltd., Apple Inc., PayPal Holdings, Inc., Google LLC, Mastercard Incorporated, Samsung Electronics Co. Ltd., Tencent Holdings Limited., and Vodafone Group PLC . These companies are focusing on new service developments to expand their presence in the market. For instance, in June 2022, Samsung unveiled the Samsung wallet to allow customers to store boarding passes, identification cards, and digital keys in one location, designed to enable users to monitor their digital assets through cryptocurrencies’ value.
 

Impact of COVID-19 on the mobile wallet industry outlook

The COVID-19 pandemic has highlighted the need to embrace digital solutions, influencing governments and businesses to adopt digital payment platforms to distribute funds and pay essential workers. In middle- and low-income countries excluding China, nearly 40% of adults used a phone, card, or the Internet to conduct payments in-store or online for the first time since the outbreak, as per the World Bank.
 

This market research report on mobile wallet includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2030, for the following segments:

Market, By Type

  • Open
  • Semi-closed
  • Closed

Market, By Ownership

  • Banks
  • Telecom Operators
  • Device Manufacturers
  • Tech Companies

Market, By Technology

  • Near Field Communication (NFC)
  • Optical/QR Code
  • Digital Only
  • Text-based

The above information has been provided for the following regions and countries:

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

 

Authors: Preeti Wadhwani, Smriti Loomba

Frequently Asked Questions (FAQ) :

The market size of mobile wallet crossed USD 220 billion in 2021 and is set to progress at over 17% CAGR from 2022 to 2030 due to the increasing penetration of IoT devices.

The mobile wallet industry from the semi-closed wallet segment valued at USD 150 billion in 2021 owing to the influx of tech players in the fintech sector.

The banks segment is poised to grow at more than 15% CAGR through 2030, which can be credited to the strong focus of fintech establishments on increasing customer retention.

The optical/QR code segment will exhibit a growth rate of nearly 15% through 2030, due to its high convenience, and other favorable usage attributes.

The Europe mobile wallet market size is anticipated to depict a CAGR of 16% through 2030, driven by the rapid evolution of mobile banking.

Key companies partaking in the industry share include Amazon.com, Inc., Ant Financial Services Group, Skrill Ltd., Apple Inc., PayPal Holdings, Inc., Google LLC, Samsung Electronics Co. Ltd., Tencent Holdings Limited., and Vodafone Group PLC, among others.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 23
  • Tables & Figures: 446
  • Countries covered: 24
  • Pages: 323

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