Mobile Wallet Market size is anticipated to cross USD 970 billion by 2030, according to a new research report by Global Market Insights Inc.
The rise of e-commerce sector as a prominent factor augmenting the mobile wallet business development. According to a report from the Retail Indicator Division of the U.S. Department of Commerce, e-commerce sales in the U.S. reached USD 870 billion in 2021, indicating a 14.2% rise over 2020. Payment systems including digital mobile wallets can make shopping through smart devices convenient and seamless for customers. Increased safety is also another key reason for the increasing popularity of mobile payments.
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As the digital trend continues to expand, the population of customers making purchases through smartphones over traditional methods such as cash will rise considerably. Furthermore, the rate of internet penetration has increased tremendously over recent years. Based on data from Eurostat, the share of households with access to the Internet increased from 72% in 2011 to 92% in 2021 in the European Union.
Closed mobile wallets to become a preferred payment option for e-commerce firms
The closed mobile wallet market segment is poised to depict a CAGR of nearly 20% through 2030, driven by the mounting investment to expand digital wallet offerings across the e-commerce sector. E-commerce companies are also building their closed mobile wallets to increase customer loyalty and encourage repeat purchases. Lucrative discounts and cashback are incentivizing customers to store money in closed wallets, favoring segmental expansion.
Browse key industry insights spread across 323 pages with 404 market data tables and 42 figures & charts from the report, “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” in detail along with the table of contents:
Strategic partnerships among telecom operators and card issuers
The telecom operators segment held around 2.5% of the revenue share in 2021. Recently, mobile network service providers have been entering strategic partnership deals with card issuers to develop virtual wallets. These product offerings are intended to customers for business-to-customer and business-to-business models.
The NFC technology segment accounted for about 15% of the mobile wallet market share in 2021, which was attributable to its capability to enable electronic devices to exchange information. For example, the NFC chip in smartphones can subtract the purchase amount from the mobile wallet app when customers hold the phones near a POC (point-of-sale) device or a checkout terminal, thereby ensuring ease of use.
North America to emerge as a major revenue pocket
The North America mobile wallet industry valued at more than USD 40 billion in 2021, owing to the rising emphasis on discounts, deals, convenience, and improved experiences among banking customers. Customers also switch to banks that meet their expectations and want to gain control over their banking experiences in terms of value.
Strategic alliances to remain a key growth strategy
The competitive landscape of the mobile wallet market is slated to witness strategic alliances among industry players. For instance, in May 2022, Mastercard and HyperPay partnered to accelerate the adoption of digital payment solutions in the MENA region. Through this collaboration, the companies intended to help governments, businesses, and SMEs increase the use of digital payment platforms. Amazon.com, Inc., Skrill Ltd., Apple Inc., PayPal Holdings, Inc., Google LLC, Mastercard Incorporated, Samsung Electronics Co. Ltd., Tencent Holdings Limited., and Vodafone Group PLC are some of the companies profiled in the report.