ICT-IOT

Mobile Payment Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : February 2024

Format :Pdf Ppt Xls

Report ID:KR488

Author : Siddhi J.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 1,903.53 Billion

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Forecasted Value (2031)

USD 6,232.59 Billion

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CAGR (2024 - 2031)

16.24%

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Fastest Growing Region (2024 - 2031)

North America

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Largest Region

Asia Pacific

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By Location

Remote Payment, Proximity Payment

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By Payment Mode

Mobile Wallets, Mobile Banking, Internet Payments, Others

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By Technology

Near Field Communication (NFC), Sound Wave-based Payments, Quick Response Code, Magnetic Secure Transmission

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By Application

Medical & Healthcare, IT & Telecom, Hospitality & Transportation, Retail, Others


Market Perspective

The global Mobile Payment Market was valued at USD 1,903.53 billion in 2023 and is projected to reach USD 6,232.59 billion by 2031, growing at a CAGR of 16.24% from 2024 to 2031.

The mobile payment market has witnessed significant growth and transformation in recent years, driven by advancements in technology, changes in consumer behavior, and the increasing adoption of smartphones. These factors have paved the way for a more convenient and secure way of making transactions. With mobile payment apps becoming increasingly popular, consumers can now easily make purchases, transfer money, and even split bills with just a few taps on their smartphones. Additionally, the integration of biometric authentication, such as fingerprint or facial recognition, has further enhanced the security aspect, instilling trust among users and encouraging further adoption of mobile payment solutions.

The adoption of near field communication (NFC) technology has facilitated contactless payments, allowing users to make transactions by simply tapping their devices. QR code-based payments have gained popularity, especially in regions like Asia, where services like Alipay and WeChat Pay use QR codes extensively. These QR code-based payment systems have revolutionized the way people in Asia conduct transactions, as they offer a convenient and efficient way to make payments without the need for physical cash or cards. With just a scan of a QR code, users can easily transfer money, pay for purchases, and even split bills with friends. The simplicity and accessibility of QR code-based payments have made them a preferred choice among consumers, contributing to their widespread adoption in the region. As a result, businesses have also started embracing this technology, integrating QR codes into their payment systems to cater to the growing demand.

Analyst’s Review on Mobile Payment Market

The mobile payment market is poised for continued growth, driven by ongoing technological advancements and the increasing acceptance of digital transactions. As more consumers adopt smartphones and embrace the convenience of mobile payments, businesses are also recognizing the benefits of offering this payment option. With enhanced security measures and the ability to seamlessly integrate with other digital platforms, mobile payments are becoming the preferred choice for both consumers and merchants. As this trend persists, the mobile payment market is expected to expand further, revolutionizing the way we make transactions and transforming the global economy.

Market Definition

A mobile payment is a money payment made for a product or service through a portable electronic device such as a tablet or cell phone. Mobile payments have gained popularity in recent years due to their convenience and ease of use. As technology continues to advance, mobile payments are expected to become even more prevalent, revolutionizing the way we pay for goods and services. Mobile payments, often referred to as mobile money or mobile wallet transactions, involve the use of mobile devices (such as smartphones or tablets) to conduct financial transactions. These transactions can include various activities, such as making purchases, transferring money, paying bills, and more. Mobile payments leverage wireless technologies, such as near field communication (NFC) or mobile apps, to facilitate the transfer of funds securely and conveniently.

As mobile payments continue to gain popularity, they are poised to disrupt traditional payment methods and reshape the entire financial landscape. The convenience and ease of use offered by mobile payments have made them increasingly appealing to consumers and businesses alike. With just a few taps on a screen, individuals can complete transactions in a matter of seconds, eliminating the need for physical cash or cards. This not only streamlines the payment process but also reduces the risk of fraud and theft associated with carrying physical forms of payment. Additionally, mobile payments enable individuals to access their funds and make purchases anytime, anywhere, making them particularly advantageous in today's fast-paced, digital world.

Market Dynamics

The widespread adoption of smartphones globally is a primary driver for mobile payments. With the increasing ownership of smartphones, the potential user base for mobile payment services is expanding. This enhanced accessibility has resulted in a significant rise in mobile payment transactions, with users appreciating the convenience of making payments at any time and from any location. Furthermore, advancements in smartphone technology, such as enhanced security measures like biometric authentication, have instilled trust among users regarding the security and reliability of mobile payments. As this trend continues, businesses are also starting to realize the advantages of adopting mobile payments, including streamlined transactions, reduced cash handling costs, and the ability to cater to the preferences of tech-savvy consumers.

Security is a significant challenge in the mobile payment market. As transactions are conducted digitally, there is a constant need to ensure the security and integrity of sensitive financial information. Issues such as data breaches, identity theft, and fraudulent activities pose risks to both consumers and businesses. Implementing robust security measures and educating users about safe practices are crucial to address these concerns.  Furthermore, the increasing popularity of mobile payment platforms has attracted the attention of cybercriminals who are constantly devising new ways to exploit vulnerabilities in these systems. With the vast amount of personal and financial data being transmitted and stored on mobile devices, it is imperative for companies to stay one step ahead of potential threats.

Segmentation Analysis

The global mobile payment market is segmented based on location, payment mode, technology, application, and geography.

Based on location, the mobile payment market is bifurcated into remote payment and proximity payment. The remote payment segment is expected to hold a significant revenue share of 53.68% in 2023. This growth can be attributed to the increasing adoption of digital wallets and mobile banking applications, allowing users to make payments from the comfort of their homes. Additionally, the convenience and security offered by remote mobile payments are driving the growth of this segment. As more businesses and consumers embrace contactless payment options, the remote payment segment is poised to continue its upward trajectory in the coming years.

Based on payment mode, the mobile payment market is classified into mobile wallets, mobile banking, internet payments, and others. The mobile wallets segment is anticipated to grow at a CAGR of 19.94% during the forecast period.  This growth can be attributed to the increasing adoption of smartphones and the convenience offered by mobile wallets for making quick and secure payments. Mobile wallet apps such as Apple Pay, Google Pay, and Samsung Pay have gained popularity among consumers, allowing them to store their payment information and make contactless transactions with just a few taps on their phones. With continuous advancements in technology and a growing preference for cashless payments, the mobile wallets segment is likely to witness further growth and dominate the mobile payment landscape in the coming years.

Based on technology, the mobile payment market is categorized into near field communication (NFC), sound wave-based payments, quick response code, and magnetic secure transmission. Near field communication segment is anticipated to grow at a CAGR of 21.31% during the forecast period. This growth can be attributed to the increasing adoption of contactless payment methods and the proliferation of smartphones equipped with NFC capabilities. Near field communication enables secure and convenient transactions by allowing users to simply tap their devices on a payment terminal to complete a transaction. This technology has gained significant traction in recent years, especially in the retail and transportation sectors, where it offers a seamless and efficient payment experience for both consumers and businesses. Additionally, the growing popularity of mobile wallets and digital payment platforms has further fueled the demand for NFC-enabled mobile payment solutions.

Geographical Analysis

Based on regional analysis, the global mobile payment market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Mobile Payment Market Size & Share, By Region, 2024-2031

Asia-Pacific held the largest mobile payment market share of 35.26% in 2023. This can be attributed to the widespread adoption of mobile payment solutions and the growing smartphone penetration in countries like China and India. Furthermore, the region's strong e-commerce industry and increasing digitalization of financial services have also contributed to the dominance of Asia-Pacific in the mobile payment market.

Whereas, North America is projected to experience a rapid growth rate of 18.91% during the forecast period. This growth can be attributed to the increasing consumer preference for convenience and the adoption of advanced payment technologies. Additionally, the presence of established players in the mobile payment industry, such as Apple and Google, has further boosted the mobile payment market growth in North America. The region's mature banking and financial infrastructure, coupled with high smartphone penetration, are also key factors driving the rapid growth of the mobile payment market in North America.

Competitive Landscape

The global mobile payment market study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective mobile payment market shares across different regions.

The major players in the Mobile Payment Market are:

  • Amazon Pay
  • PayPal
  • MTN Mobile Money
  • Venmo
  • Google Pay
  • Paytm
  • Vodafone's M-Pesa
  • Airtel Money
  • Alipay
  • Apple Pay

Key Developments

  • April 2023 (Partnership) - Amazon collaborated with a reputable financial services firm to provide a novel flex payment alternative to eligible credit card holders through Amazon Pay. Additionally, Amazon provides flexible payment choices on its e-commerce platform through affiliations with Affirm.
  • December 2023 (Partnership) - Google Pay is set to introduce buy now, pay later (BNPL) choices for online and mobile transactions in the United States in the coming year. Collaborating with Affirm and Zip, both based in Australia, Google Pay will enable Android device users to access their pay-in-four services starting in early 2024.

The global Mobile Payment Market is segmented as:

By Location

  • Remote Payment
  • Proximity Payment

By Payment Mode

  • Mobile Wallets
  • Mobile Banking
  • Internet Payments
  • Others

By Technology

  • Near Field Communication (NFC)
  • Sound Wave-based Payments
  • Quick Response Code
  • Magnetic Secure Transmission

By Application

  • Medical & Healthcare
  • IT & Telecom
  • Hospitality & Transportation
  • Retail
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America.
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  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
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  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global mobile payment market is projected to reach USD 6,232.59 billion by 2031, growing at a CAGR of 16.24% from 2024 to 2031.
The global mobile payment market was valued at USD 1,903.53 billion in 2023.
Increase in smartphone ownership, increasing use of contactless payments and the availability of loyalty benefits, innovation and investment in mobile apps are the key factors driving the market growth in the mobile payment industry.
Top manufacturers of the mobile payment market are Amazon Pay, PayPal, MTN Mobile Money, Venmo, Google Pay, Paytm, Vodafone's M-Pesa, Airtel Money, Alipay, Apple Pay among others.
North America is the fastest growing region with a CAGR of 18.91% in the forecasted period (2024-2031).
By technology, Quick Response Code will hold the maximum share in the mobile payment market with a revenue value of USD 1,835.52 billion in 2031.
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