ICT-IOT

Mobile Payment Market is Expected to Reach USD 6,232.58 Billion by 2031.

Mar 2024

ICT-IOT

As per the report published by Kings Research, the global Mobile Payment Market was valued at USD 1,903.53 billion in 2023 and is projected to reach USD 6,232.58 billion by 2031, growing at a CAGR of 16.24% from 2024 to 2031.

Fueled by the growing demand for convenience and a one-stop-shop experience, mobile payment providers are integrating additional services into their platforms to enhance the user experience. This includes features such as loyalty programs, rewards, and financial management tools. Additionally, integration with other financial services, such as banking and investment platforms, is becoming increasingly prevalent as mobile payment providers aim to offer a comprehensive financial ecosystem. By integrating with banking services, users can easily transfer funds between accounts and access their transaction history seamlessly. Furthermore, the integration with investment platforms allows users to conveniently manage their portfolios and make informed investment decisions within the mobile payment app. 

Additionally, traditional payment methods, such as cash and checks, are being replaced by digital payment methods. Mobile and digital wallets are increasingly gaining popularity, offering more convenience and security. The COVID-19 pandemic has accelerated the shift toward digital payments, leading to the growing adoption of next-generation payment methods such as mobile payment apps. With the increased awareness of hygiene and the need for contactless transactions, consumers are highly prioritizing the safety and convenience of mobile payments. As a result, mobile payment providers are investing heavily in advanced technologies such as biometric authentication and encryption to ensure the security of users' financial information. This investment in innovation and security further solidifies the position of mobile payment apps as the future of payments.

Key Insights

  • By location, the remote payment segment held a significant revenue share of 53.68% in 2023
  • By payment mode, the mobile wallets segment is anticipated to grow at a staggering CAGR of 19.94% over the forecast period
  • By technology, the near-field communication segment is likely to register a CAGR of 21.31% through the protection period
  • On the basis of region, Asia-Pacific held the largest market share of 35.26% in 2023

PayPal Unveils Tap-and-Pay Feature and Introduces AI Solution to Combat Payment Fraud

July 2023: PayPal announced the integration of Tap to Pay technology for Venmo and PayPal Zettle enterprises within the United States. Small businesses now have a convenient way to accept contactless payments. This new advancement allows them to process both card transactions and digital wallet payments directly through their mobile devices.

Increasing Number of Online Transactions to Contribute Significantly to Mobile Payment Market Growth

The rising number of online transactions is driving the demand for mobile payments. As an increasing number of individuals engage in e-commerce and online shopping, the need for secure and convenient payment methods, such as mobile payments, increases. Mobile payments provide a seamless and efficient way to make purchases without the need for physical cash or credit cards. With just a few taps on their smartphones, consumers can easily complete transactions and receive immediate confirmation, thus saving time and effort. Moreover, the advanced security measures implemented in mobile payment platforms enhance the trust and confidence of users, thereby fostering market growth.

Real-Time Payments and Distributed Ledger Technology to Drive Mobile Payment Market Growth

Real-time payments and the growing use of distributed ledger technology, such as blockchain, are transforming the payments industry. Real-time payments offer speed, value-added messaging capabilities, and immediate availability of transaction status, while blockchain has the potential to change the financial transaction processing cost model by eliminating the need for intermediaries and reducing transaction fees. The combination of real-time payments and blockchain technology is revolutionizing the way transactions are conducted, making them faster, more secure, and cost-effective. With real-time payments on a blockchain, both individuals and businesses can make instant, secure transactions across borders without relying on traditional banking systems, thereby opening up new possibilities for financial inclusion and global commerce.

Asia-Pacific to Dominate the Market with a Robust CAGR of 14.16% Over 2024-2031

Based on region, the global mobile payment market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The region is experiencing significant growth due to the increasing adoption of smartphones and rising internet penetration in countries such as China and India. Additionally, the convenience and ease of mobile payments have made them a popular choice among consumers in this region. With the continuous advancements in technology and the growing acceptance of mobile payments, Asia Pacific is expected to maintain its dominance in the mobile payment market in the coming years.

Companies Focusing On Product Launches and Collaborations to Fulfill Consumer Demands

The global mobile payment market is fragmented with key players such as Amazon Pay, PayPal, MTN Mobile Money, Venmo, Google Pay, Paytm, Vodafone's M-Pesa, Airtel Money, Alipay, and Apple Pay. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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