Product Code: 68830
The market for the global mobile wallet is expected to register a CAGR of 22.5% over the forecast period (2021 - 2026). Over the years, the mode of payment has become increasingly streamlined from cash to debit cards, to online transactions additionally with the advent of eCommerce methods such as Paypal has initiated the major adoption of mobile wallet, Since then the concept of the digital wallet has evolved replacing the traditional physical-digital wallet.
- The smartphone industry over the course of years has witnessed rapid technological advancements in terms of features offered including NFC, 5G adoption, biometrics, encryption, AI among others which is evident with greater penetration of smartphones in users' everyday activities which thereby is leveraging the growth of various industries including the financial industry that is leveraging the gaining momentum of growing smartphone users owing to the cost-effectiveness and convenience offered by the mobile wallets.
- Also, The platforms such as eCommerce and mCommerce have played a major role in altering the habits of users while doing monetary transactions such as shopping by allowing users to enter the banking information into their respective wallet and enabling mobile phone as a mode payment in the place of credit and debit cards while ensuring security is handled on their side leveraging technologies such as tokenization and essentially eliminating the risk of being stolen thereby has fostered the growth of the market.
- Mobile-point-of-sale solutions such as Near field Communication, Sound wave payments, MST payments enable the service and sale organizations to conduct the monetary transaction in a versatile way without restricting to a single location allowing merchants to run mobility businesses such as food tracks, trade shows while improving the user experience which is evident by major retailers adopting the mPOS technology to support the decline foot traffic. For instance, NFC powers the technology behind major mobile wallets like Apple Pay, Samsung Pay, and Google Pay.
- Additionally, the mobile payment systems are expanding beyond the scope of smartphones and tablets with the use of wearable technology such as smartwatches, rings vendors are now embracing IoT while leveraging the potential of disruptive technologies such as blockchain to ensure the security of transaction and countering the concerns over data privacy. For instance, Apple Inc offers services such as contactless payments, person to person payments, Transit cards through their mobile wallet offering Apple pay onto their smartwatch called Apple Watch.
Key Market Trends
Proximity Payments to Witness the Fastest Market Growth
- Although there are various proximity payment based mobile wallet available in the market including NFC, UHF, MST, Location-based payments among others, However, The Near Field Communication, QR and Magnetic Secure Transmission are leading technologies driving the market
- NFC solutions enable users to seamlessly integrate existing payment cards through mobile phones and activation of payment services added with convenience and assured security. Even so, it makes contactless payment via wearables leveraging tokenization. Also, it also integrates with vendor machines
- Also, owing to its low processing fees will help retailers to achieve cost and operational efficiency and obtain data opportunities and loyalty which turn could be used to improve relations with customers. For instance, All the major mobile wallet vendors such as Apple Inc, Google LLC, Samsung Corporation utilize NFC technology on top their mobile wallet
- Also, Developed region such as North America already have substantial market for NFC powered devices such as smartphones, chips , readers added to it many wireless carriers such as Verizon, AT&T have implemented NFC in their products
- While In the emerging market such as India most smartphones do not come equipped with NFC technology and people relay on the platform called Unified Payment Interface (UPI) developed by the National Payments Corporation of India which is based on QR code.
- Additionally, In order to counter the data privacy and centralization concerns, vendors are now planning on leveraging cryptocurrecncy powered technologies such as Blockchain. For instance, In November 2019, JPMorgan Chase announced it has created an e-Wallet product intended to large tech firms such as Amazon, Airbnb, and Lyft. The new wallet aims to bring an open virtual account that no processing fees and is powered by Blockchain technology, Evident by its prior launch, the company launched a cryptocurrency called JPM coin that enables the instantaneous transfer of payment between the institutional clients in February 2019.
Asia-Pacific to Witness the Fastest Market Growth
- China has always been a major player in the mobile economy leveraging its fintech firms enabling cashless payment across the country until recently, southeast Asia is catching the rise majorly due to its robust economic growth added smartphone penetration in the market
- Also, the traditionally cash-reliant economy is leveraging the host of vendors in the region such as ride-rentals, remittance firms, fintech startups, banks to provide people in Southeast Asia greater access to e-wallets, microloans, insurtech products through smartphones. For instance, According to Forbes, Indonesia is one of the mobile-first countries in the world with 95% of internet users reported as mobile users
- According to a report from Gooogle, Temasek and Bain & Company, Southeast Asia digital payment industry is projected to grow the gross transaction volume from USD 600 billion in 2019 to USD 1.1 trillion by 2025, with e-wallets sharing USD 22 billion in 2019 and USD 114 billion in 2025
- To capture such potential market, Global vendors are strategically collaborating and acquiring local vendors. For instance In December 2019, Ant Financial has patnered with several local wallets in Southeast Asia and has invested in eMonkey to capture digital payments market share in the region.
- Additionally, Government initiative such as Digital India leverage the growth of the market in the region
The mobile wallet market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with a prominent share in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives, acquisitions to increase their market share and increase their profitability.
- December 2019- Ant financials announced that it has acquired a sizable stake in eMonkey, a Vietnamese e-wallet and report it will be controlling about 50% of eMonkey operations with significant influence on the wallet. This acquisition will enable Ant financials to enter the Vietnamese payment market leveraging the operating licenses of eMonkey from the State Bank of Vietnam as it plans to invest several hundred million dollars in the market in the near future.
- November 2019- In response to the prior announcement of Tencent to support international card schemes in its mobile wallet, Visa released a statement that it believes the strategy would leverage the international consumers traveling to china. Visa is currently collaboratively working with Tencent to develop an environment where visa cardholders will be able to visa cards in china wherever WeChat pay is accepted.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Growth of smartphone User
- 4.2.2 Government initiative towards digital transformation
- 4.2.3 Assured discount, coupons, and cashback offers by mobile wallet vendors and partnered organizations
- 4.2.4 Growth of e-commerce platforms
- 4.2.5 Ease and Convience offered by mobile wallets
- 4.3 Market Restraints
- 4.3.1 Data Privacy concerns by end-users
- 4.4 Industry Attractiveness - Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
- 5.1 Mode of Payment
- 5.1.1 Proximity ( NFC,Sound waves-based payments,Magnetic secure transmission (MST) payments,Quick response (QR) code payments)
- 5.1.2 Remote Payment (Internet payments,SMS payments,Direct carrier billing,Mobile banking)
- 5.2 Application
- 5.2.1 Mobile Commerce
- 5.2.2 Money Transfer
- 5.2.3 Micropayment
- 5.2.4 Retail
- 5.2.5 Restaurant
- 5.2.6 Public Transport
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 Latin America
- 5.3.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Apple Inc
- 6.1.2 Google Inc
- 6.1.3 Tencent Holdings Ltd.
- 6.1.4 PayPal Holdings, Inc.
- 6.1.5 Samsung Electronics Co., Ltd.
- 6.1.6 MasterCard Incorporated
- 6.1.7 Visa Inc.
- 6.1.8 Ant Financial Services Group
- 6.1.9 JP Morgan Chase &Co.
- 6.1.10 Mobikwik
- 6.1.11 Paytm
- 6.1.12 The American Express Company
- 6.1.13 First Data Corporation
7 MARKET OPPORTUNITIES AND FUTURE TRENDS