Mobile Payment Industry Overview
The global mobile payment market size is expected to reach USD 587.52 billion by 2030, expanding at a CAGR of 36.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth can be attributed to the increasing shift toward contactless payment amid the COVID-19 pandemic. Moreover, the increasing popularity of the e-commerce industry across the globe is expected to accelerate the adoption of mobile payment over the forecast period.
The traditional payment market is witnessing a technological transformation, which is primarily disrupting legacy business models. The market for mobile payment is expected to revolutionize how customers make payments as it merges technological innovations such as biometrics, wearables, and blockchain technology. The market is expected to witness momentous shifts and provide unprecedented opportunities to the new and existing players.
The increasing popularity of smartphones and the developments in the security and technology spaces, coupled with the constantly changing preferences of the younger generation, have made mobile payments one of the most preferred payment options. Customers are increasingly using mobile wallets to make in-store payments and online purchases. Mobile wallets facilitate speedy, hassle-free, and secure payments for the purchase of goods and services. Moreover, these wallets are economical, reduce fraud, and help lower payment processing time.
The outbreak of the COVID-19 pandemic is expected to positively impact the growth of the market over the forecast period. The COVID-19 pandemic has significantly influenced people’s daily lives and their buying behavior. The increasing demand for contactless mobile payments in retail shops such as drug and grocery stores to help reduce the chances of virus transmission is expected to drive the market growth over the forecast period.
Mobile Payment Market Segmentation
Grand View Research has segmented the global mobile payment market based on technology, payment type, location, end-use, and region:
Based on the Technology, the market is segmented into Near Field Communication, Direct Mobile Billing, Mobile Web Payment, SMS, Interactive Voice Response System, Mobile App, and Others.
- The mobile web payment segment dominated the market in 2022 with a revenue share of more than 23.0%. The growth of the segment can be attributed to the security and flexibility provided by mobile web payment solutions. The growing popularity of m-commerce also bodes well for the growth of the segment. The mobile web payment platforms have a URL and can be properly bookmarked, making it easier for customers to re-visit or share the website.
- The near-field communication segment is expected to expand at the highest CAGR over the forecast period. NFC technology allows merchants to integrate customer loyalty programs into their payment processes and customers to redeem their coupons immediately using mobile phones.
Based on the Payment Type, the market is segmented into B2B, B2C, B2G, and Others.
- The B2B segment held the leading revenue share of more than 60.0% in 2022. Aggressive investments by private equity and venture capital firms in B2B payments are creating new growth opportunities. For instance, in January 2022, Rupifi, a B2B payment application provider, raised USD 25 million in a series-A round funding, led by Tiger Global Management, LLC and Bessemer Venture Partners.
- The B2C segment is expected to expand at the highest CAGR over the forecast period. B2C payments are payments made by consumers while buying a product or subscribing to a service for personal use. The increasing share of mobile payments in the e-commerce industry vertical is driving the growth of the segment. According to a study conducted by SalesForce, mobile consumers account for 60% of the world’s total e-commerce traffic.
Based on the Location, the market is segmented into Remote Payment, and Proximity Payment.
- The remote payment segment held the dominant revenue share of more than 59.0% in 2022. The popularity of remote payments is increasing, particularly due to the outbreak of the COVID-19 pandemic, as remote payments do not require any direct interaction while making payments. Several companies are launching remote payment apps to allow customers to make payments remotely.
- The proximity payment segment is expected to expand at the highest CAGR over the forecast period. Proximity payments require the payer and the payee to be in proximity and the transactions take place between the payer’s and the payee’s devices via QR codes, NFC, or Bluetooth connectivity. This payment method allows paying for goods and services by mobile phones and other devices at a physical POS terminal.
Based on the End-use, the market is segmented into BFSI, Healthcare, IT Telecom, Media Entertainment, Retail E-commerce, Transportation, and Others.
- The BFSI segment dominated the market in 2022 with a revenue share of more than 22.0%. Several banks are trying aggressively to introduce mobile payments, thereby contributing to the growth of the segment. Businesses are also focusing on adopting a custom suite of comprehensive payment solutions, which helps resolve unique challenges across wealth management, lending, and insurance sectors.
- The retail and e-commerce segment is expected to expand at the highest CAGR over the forecast period. The growing number of smartphone users and the subsequent rise in mobile commerce sales bode well for the growth of the segment. Smartphones applications are emerging as the most preferred way of shopping. According to the statistics provided by J.P. Morgan 2020 E-commerce Payments Trends Report, 54% of mobile commerce payments are done through dedicated shopping applications.
Key Companies Market Share Insights
Major players in the market are adopting strategies such as new product launches, strategic agreements, and product upgrades as part of their efforts to cement their market position. They are also focusing on striking strategic partnerships with financial service providers to enhance customer experience. For instance, in April 2021, MoneyGram International announced a partnership with Sigue, a B2B and P2P payment company based in the U.S. The partnership allowed Sigue’s customers to access MoneyGram International’s new MoneyGram as a Service business line and allowed other financial institutions on the Sigue platform to access MoneyGram International’s latest API-driven payment technology.
The key players are also investing aggressively in enhancing their product offerings. For instance, in January 2021, Safaricom announced the launch of the M Pesa bill management service. The service was mainly launched to target schools, utilities, landlords, and other businesses that receive repeated customer payments. This platform is focused on providing details to the customer, such as their pending payments, reminders regarding bill payments, and electronic bills after the payments are done. Some of the prominent players operating in the global mobile payment market are:
- Google (Alphabet Inc.)
- Alibaba Group Holdings Limited
- com Inc.
- Apple Inc.
- American Express Company
- M Pesa
- Money Gram International
- PayPal Holdings Inc.
- Samsung Electronics Co. Ltd.
- Visa Inc.
- WeChat (Tencent Holdings Limited)
Order a free sample PDF of the Mobile Payment Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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