Mobile Wallets Market size is poised to surpass USD 700 million by 2027, according to a new research report by Global Market Insights Inc.
The increasing penetration of smartphones is likely to boost the mobile wallet industry growth. The rapid surge in the adoption of smart devices has been witnessed in the past decade. It is estimated that by 2025, smartphones will account for about 77% of internet-enabled devices. Attractive discounts and cashback offers by mobile wallet providers is also spurring the industry demand. Mobile wallet vendors are focusing on attracting customers by offering various discounts and cashback offers.
Growing demand for own mobile wallets is promoting the closed mobile wallets market demand
The closed wallet market is set to grow at a rate of over 25% through 2027 owing to the increasing number of investments by the e-commerce players to launch their product offerings. The e-commerce players are building their own closed wallets to enhance customer loyalty and promote repeat purchases. Additionally, various data security issues associated with third-party vendors are creating the need for e-commerce players and device manufacturers to launch their own closed mobile wallets.
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Rising usage of mobile wallets across the BFSI industry
The bank ownership segment held around 10% of the mobile wallets market share in 2020. The growth is attributed to the increasing investments in the development of banks' own digital wallets to capitalize on the opportunities to sell various financial products and gain actionable insights, thereby offering a customized experience to their customers. Moreover, they are also providing digital wallet solutions to protect their customers and institutions from fraud.
Browse key industry insights spread across 270 pages with 381 market data tables and 33 figures & charts from the report, “Mobile Wallet Market Size By Type (Open, Semi-closed, Closed), By Ownership (Banks, Telecom Operators, Device Manufacturers, Tech Companies), By Technology (Near Field Communication (NFC), Optical/QR Code, Digital Only, Text-based), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The cost-effectiveness of mobile wallets is promoting the use of optical/QR code technology
The optical/QR technology segment is projected to witness 15% CAGR from 2021 to 2027. The cost-effectiveness of mobile wallets is promoting the use of optical/QR code technology in digital wallets. Merchants across the globe are adopting optical/QR code-based digital wallets as they do not incur any additional expenses. Particularly, in countries, including India and China, where the merchants do not own Point of Sale (POS) system, QR code-based digital wallets have received widespread acceptance.
The increasing number of e-commerce platforms across the Asia Pacific
Asia Pacific mobile wallets market is anticipated to generate a revenue of nearly USD 400 million by 2027. Rising number of e-commerce platforms including Flipkart, Amazon, and Alibaba in the region are supporting the industry expansion. Favorable government initiatives to promote the use of digital payment channels will also drive the market growth. The explosion of several smartphone owners and technological advancements in connectivity infrastructure is also encouraging the use of digital wallets in the region.
Leading companies are focusing on strategic partnerships to augment market share
Industry leaders are focusing on strategic partnerships to enhance their digital wallet capabilities and gain a competitive advantage in the market. For instance, in July 2020, Barclays PLC partnered with FreedomPay, a payment platform, to offer seamless end-to-end payment services to customers of Barclaycard. Through this partnership, the company aimed to enhance the existing Barclaycard offers and provide access to more payment methods & technologies, such as offline & online PIN authorization, used in the UK and the mainland of Europe.
Some of the key players operating in the mobile wallets market are Amazon.com, Inc., American Express Company, Ant Financial Services Group, Allied Wallet, Inc., Apple, Inc., AT&T, Inc., Barclays plc, Due, Inc., First Data Corporation, Google LLC, ICICI Bank Limited, J.P. Morgan Chase & Co., Mastercard Incorporated, Mozido, Inc., One Mobikwik System Pvt., Ltd., One, Communications Limited, PayPal Holdings, Inc., Samsung Electronics Co., Ltd., Skrill Ltd., Tencent Holdings Limited., Visa, Inc., Vodafone Group PLC, and Wells Fargo & Company.