Mobile Payments Market Overview:
‘Financial Inclusion’ through the digitalization of the economy is being heavily emphasized by the World Bank. From communication and entertainment, smartphones have now evolved to facilitate financial inclusion processes via mobile payments markets. As per the World Bank, over one billion of the 1.7 billion unbanked adults (those with no bank accounts or access to financial services) in 2017 owned a mobile phone, potentially offering easier access to digital financial services. Mobile payments, also known as mobile money or mobile wallet, is a concept in which a portable electronic gadget such as a tablet, smartphone, or cell phone functions as a payment medium. Digitalization of economies, increasing e-commerce, and growing smartphone sales, have contributed to the global mobile phone payments market achieving a size of $3.21 billion in 2018. With multiple types of transactions such as Direct, WAP, SMS and USSD which offer consumers a choice in terms of how they wish to transact, opportunities in the market are estimated to grow at a CAGR of 29.85% during the forecast period 2019-2025.
Mobile Payments Market Outlook:
In terms of application, the mobile payments market is mainly bifurcated into travel and ticketing, banking, and e-commerce services. Further analysis of each segment indicates banking and travel tickets to be the fastest growing application segment for the mobile payments market, which is projected to grow at a CAGR of 37.80%. Companies like MakeMyTrip, Yatra, Ibibo, Cleartrip (for airlines and hotels), redBus (for buses) are examples of online travel booking companies in India, which are fuelling the mobile payments market, by facilitating booking only through online platforms. A study by India Brand Equity Foundation (IBEF) found that 81% of existing digital payment users in India favor the digital and mobile mediums for banking over other non-cash payment procedures such as demand drafts or cheques.
North America, which has displayed affinity over the years in adopting newer technologies, is the most lucrative region for the mobile payments market, generating a global demand share of 34.18% in 2018. With several innovative key market players located in North America such as PayPal Holdings, Inc. and Microsoft Corporation, this region is leading the innovative front with development of novel technologies such as contactless payments and near-field communication. A high rate of internet penetration, growth of e-commerce and micropayment options has contributed to the popularity of the mobile payments market in North America.
Mobile Payments Market Growth Drivers and Trends:
o The major factors boosting the mobile payments market is the convenience and security associated with mobile transactions. Cutting-edge innovations pertaining to transactions such as bank-to-bank transfers via United Payment Interface (UPI), contactless payment, QR code payments, cloud-based mobile payments, and optimum security provisions including biometric logins and generation of One-Time Passwords (OTP) are increasing adoption of mobile payments services.
o The number of smartphone users across the globe is witnessing an unprecedented elevation. With brands like Xiaomi and Samsung penetrating the market for budget devices, a gigantic amount of consumers from developed and developing economies are now opting for smartphones with the ability to seamlessly conduct mobile payments. Xiaomi managed to record a sale of 100 million devices in the first 10 months of 2018 alone.
1. o The global e-commerce market has been disrupted by the advent of mobile commerce (m-commerce). It is a major factor boosting the growth of the mobile payments market as it is exclusively reliant on mobile phones for digital transactions. M-commerce is replacing cash transactions by providing exceptional offers and discounts to customers opting for mobile payments. With m-commerce all set to capture a hefty share of e-commerce trades globally, the mobile payments market will receive increased attention and revenue from millennial shoppers.
3. o Mobile payment services require efficient infrastructure for implementing information and communication technology (ICT). While developed nations have adequate infrastructural facilities, developing economies are unable to leverage facilities delivered by the mobile payments market. However, the trend of sanctioning loans from international financial institutions for ‘financial inclusion’ is a disruptive trend for the mobile payments market in developing nations. Pakistan Financial Inclusion and Infrastructure Project received assistance of $130 million from two World Bank institutions – the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
Mobile Payments Market Players Perspective:
Some the key players operating in the global mobile payments market are Amazon.com, Inc., PayPal Holdings, Inc., Alipay by the Alibaba Group, Alphabet Inc., Microsoft Corporation, Boku, Inc., AT&T Inc., MasterCard International, Inc., Visa, Inc., and The American Express Company.
Mobile Payments Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the mobile payments market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various types of innovations in global mobile payments market, and their specific advantages to the market.
The Mobile Payments Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
• North America: The U.S., Canada, Mexico
• South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
• Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
• APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
• Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Mobile Payments Market Report
1. Is the market for Mobile Payments growing? How long will it continue to grow and at what rate?
2. Which type of segment presents the major growth opportunities?
3. Is there a possibility for change in the market structure over time?
4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
6. What are the short-term, long-term, and medium-term growth drivers for the market?
7. What are the short-term, medium-term, and long-term challenges for the market?
8. What are the short-term, medium-term, and long-term opportunities for the market
9. Who are the top players/companies of the market?
10. What are the recent innovations in the market?
11. How many patents have been filed by the leading players?
12. What are the types of patents filed by the leading players?
13. What is our Vision 2030 Mobile Payments market?
A few focus points of this Research are given below:
• Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
• Provide an overview of the product portfolio, including product planning, development, and positioning
• Discuss the role of technology companies in partnerships
• Explore the regional sales activities
• Analyze the market size and giving the forecast for current and future Mobile Payments Market during the forecast 2019–2025