Mobile Wallet Market revenue worth over $350 Bn by 2026
Published Date: November 10, 2020 Authors: Preeti Wadhwani, Ankita Bhutani
Mobile Wallet Market size is set to surpass USD 350 billion by 2026, according to a new research report by Global Market Insights, Inc. By 2026, the global mobile payment transactions will exceed 300 billion in volume and USD 17 trillion in value.
Mobile wallet services are witnessing a spike in adoption as online shopping and m-commerce activities continue to witness an upward spike. Mobile wallets are increasingly being used by modern consumers for online shopping as global e-commerce has evolved. Customers demand secure payment from the convenience of their smartphones. This ever-growing need for hassle-free instant payments has accentuated the mobile wallet market growth.
The increasing concern in handling physical cash due to the COVID-19 pandemic has vastly supported market demand. It was estimated that the use of contactless payment methods spiked by over 69% in the U.S. since January 2020. Wallets such as Apple Pay and Google Pay have been major beneficiaries of shifting trends.
Attractive discounts and cashback to propel the uptake of mobile wallet services
The mobile wallet market has witnessed a growing demand in the wake of various cashback offers and discounts offered by vendors. Mobile wallet providers are providing loyalty programs that can also be updated and triggered based on point accumulation, fostering the repeated use of such wallets. For instance, Apple Pay offers discounts between 10% - 25% to its consumers, making e-commerce payments at selected online merchants.
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Rising interest of the banking sector to drive the open wallet demand
The open mobile wallet market is expected to grow at nearly 15% CAGR through 2026 driven by increasing investments by the banking and telecom sectors to develop open mobile wallets. The banking industry is experiencing a continual change due to widespread digitalization and the introduction of innovative product offerings. Traditional banks are facing stiff competition from upcoming new Fintech startups and are increasingly focusing on the integration of mobile technologies to facilitate payments and increase customer retention.
Increased smartphone penetration is propelling the market growth of device manufacturer-owned wallets
The device manufacturers segment is anticipated to register a steady growth rate of around 20% from 2020 to 2026 propelled by the rising penetration of smartphones globally. Presently, there are over 2.3 billion smartphones across the globe. It is estimated that by 2025, smartphones will account for nearly 80% of all internet-connected devices. Smartphone device manufacturers are introducing wallet applications to capitalize on market opportunities and gain an edge over their competitors.
Browse key industry insights spread across 240 pages with 381market data tables and 32 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), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Cost-effectiveness of QR technology to boost the market demand for optical/QR code
The optical/QR segment held over 70% of the global mobile wallet market share in 2019 owing to limited infrastructure requirements in the integration of optical/QR codes. The lack of additional infrastructure expenses has encouraged merchants to use OR code-based wallets. In economies including China and India, where merchants have little or no infrastructure, providers such as Alipay and Paytm adopt QR code technology.
Increasing shift of consumers toward mobile payments will trigger North American market
North America mobile wallet market is set to attain over 20% share in 2026. There is a steady rise in the number of U.S. consumers using mobile banking to manage their account information and make bank transactions. The high degree of smartphone usage and internet penetration is also expanding the overall market. Additionally, technology players, such as Apple, Google, and Samsung, have launched mobile wallet solutions such as Apple Pay, Google Pay, and Samsung Pay. The majority of the wallets in the region use NFC technology due to the presence of NFC-based POS systems.
Focus on inorganic growth strategies by key players to augment market share
The mobile wallet industry has witnessed several strategic acquisitions by major technology players to acquire marginal players and enter the lucrative market. For instance, in September 2020, Gojek, a major ride-hailing service provider in Indonesia, acquired WePay, a Vietnamese mobile wallet provider. The acquisition amplified Gojek’s footprint in the evolving mobile payment industry along with expansion in the Vietnam digital payments landscape.
Some of the key players operating in the mobile wallet market include 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.
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