Mobile Wallet Market
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Mobile Wallet Market size was valued at USD 318.5 billion in 2022 and is predicted to register at a CAGR of 18.5% between 2023 and 2032, driven by the widespread adoption of smartphones and internet connectivity. According to the International Telecommunication Union, in 2022, 73% of people worldwide who are ten years or older owned a mobile phone. As more people gain access to smartphones, they become increasingly inclined to use mobile wallets for a range of transactions, from everyday purchases to bill payments.
Mobile wallets provide a convenient and secure way for users to make digital payments for various goods and services. The ease of linking bank accounts, credit cards, and other payment methods to mobile wallets allows users to quickly and effortlessly complete transactions, reducing the need for physical cash or cards.
| Report Attribute | Details |
|---|---|
| Base Year: | 2022 |
| Mobile Wallet Market size in 2022: | USD 318.5 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 18.5 |
| 2023 Value Projection: | USD 1.95 Trillion |
| Historical Data for: | 2018 - 2022 |
| No of Pages: | 272 |
| Tables, Charts & Figures: | 313 |
| Segments Covered: | Type, Ownership, Technology, and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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The COVID-19 pandemic accelerated the adoption of contactless payment methods, including mobile wallets, due to hygiene concerns associated with physical cash and payment cards. The BIS Committee on Payments and Market Infrastructures (CPMI)'s Red Book Statistics show that contactless transactions accounted for the majority of all card transactions in 2020, surpassing their level from 2015. Mobile wallets offer a touchless way to complete transactions, aligning with changing consumer preferences and safety measures, thus accelerating the mobile wallet market growth.
However, despite advancements in security measures, concerns about data breaches, identity theft, and unauthorized access to mobile wallets remain. Users are often cautious about storing sensitive financial information on their smartphones, fearing potential vulnerabilities and security lapses. In some regions, particularly in rural or less-developed areas, there may be inadequate technological infrastructure and limited internet connectivity. This can hinder the widespread adoption of mobile wallets, as users require reliable connectivity to make transactions and access their digital wallets.
The COVID-19 pandemic had a profound impact on the mobile wallet market. As physical distancing measures and lockdowns became widespread, there was a surge in contactless payments, driving the adoption of mobile wallets. Businesses and consumers sought safer and more convenient ways to transact, accelerating the shift away from cash. For instance, in places like China, mobile payment platforms like Alipay and WeChat Pay saw increased usage for everyday transactions, including groceries and bill payments. The pandemic acted as a catalyst, accelerating the adoption of mobile wallet technology as an essential tool for remote and touchless payments.
To enhance security and user experience, mobile wallets were expected to increasingly integrate biometric authentication methods such as fingerprint recognition, facial recognition, and even iris scanning. Biometrics adds an extra layer of security by linking payment authorization directly to the user's unique physical characteristics. In May 2023, the Paris-based company Dfns, which offers infrastructure and security tools for cryptocurrency wallets, unveiled its plan to add biometrics to its wallet-as-a-service product. The new "Delegated Signing" feature is compatible with all major browsers and mobile operating systems and uses the WebAuthn protocol to provide authentication via native device biometrics like facial authentication and TouchID in addition to PIN codes.
Mobile wallets are predicted to move beyond traditional online and offline transactions and extend into in-app payments. This trend allows users to seamlessly complete transactions within mobile applications without the need to redirect to external payment gateways. This is particularly relevant for app-based services, e-commerce platforms, and digital content providers.
The mobile wallet market from tech companies segment is set to grow at a CAGR of 18% between 2023 and 2032. Mobile wallet ownership is on the rise among tech companies due to the convergence of digital innovation and the need for streamlined transactions. Tech giants like Apple, Google, and Samsung have integrated mobile wallet features into their ecosystems, capitalizing on their vast user bases.
For instance, Apple's Apple Pay leverages its user-friendly interface and biometric security measures to enhance the digital payment experience. Moreover, the trend toward "super apps," where multiple services are consolidated into one platform, is pushing tech companies to offer comprehensive mobile wallet solutions, driving their ownership within the industry.
The mobile wallet market from optical/QR code segment held around USD 200 billion in revenue in 2022, led by its simplicity, speed, and compatibility. QR codes offer an efficient way to transmit payment information, eliminating the need for manual entry and reducing errors. Companies like PayPal's Venmo and China's Alipay have successfully integrated QR code scanning for person-to-person payments, enabling users to quickly exchange funds by scanning codes. Additionally, QR codes are versatile and applicable in various contexts beyond payments, such as ticketing, loyalty programs, and product information retrieval, making them a versatile and user-friendly choice for mobile wallet interactions.
Asia Pacific mobile wallet market accounted for 55% of the revenue share in 2022, due to a combination of factors. High smartphone penetration and increasing digital literacy are driving the adoption of mobile wallets for convenient and secure transactions. Notably, countries like China and India have witnessed substantial growth, with platforms like WeChat Pay, Alipay, and Paytm becoming integral to daily life, encompassing payments, e-commerce, and financial services. Additionally, government initiatives promoting cashless economies and the availability of diverse services within mobile wallet ecosystems further contribute to the industry's flourishing growth in the region.
Major companies operating in the mobile wallet market are
In August 2023, First National Bank of Omaha (FNBO) and Visa collaborated to improve the mobile wallet experience for customers and instantly deliver account credentials to a user's mobile wallet without the need to download an app. After submitting an application and receiving approval for a card, users receive an account number that is automatically loaded into their digital wallet. They can then use their old mobile wallet to use their new card right away. According to the bank, it was among the first issuers to provide this service.
Market, By Type
Market, By Ownership
Market, By Technology
The above information has been provided for the following regions and countries:
Asia-Pacific market recorded over 55% of revenue share in 2022, owing to the growing smartphone penetration and increasing digital literacy in the region.
PayPal Holdings Inc., Barclays Plc, Google LLC, American Express Company, Allied Wallet, Inc., J.P. Morgan Chase &Co., Vodafone Group PLC, Ant Financial Services Group, and Skrill Ltd. are some of the major mobile wallet companies worldwide.
The optical/QR code segment was valued at USD 200 billion revenue in 2022, on account of its simplicity, speed, and compatibility.
The market size of mobile wallet reached USD 318.5 billion in 2022 and is set to grow at over 18.5% CAGR from 2023 to 2032, due to the widespread adoption of smartphones and internet connectivity worldwide.