Global Market Insights, Inc., has projected mobile wallet market size to surpass US$350 billion by 2026. Mobile wallet market value is on a robust growth trajectory as countries move to a less cash-dependent state, while the foray made by technology companies in the fintech sector has brought a tectonic shift in the digital payment landscape. The transition from online banking platforms to mobile banking apps will continue to provide revenue generating opportunities for forward-looking companies.
Semi-closed mobile wallets will potentially set the trend as a payment instrument as they do not allow users to redeem or withdraw cash, thereby protecting the interest of participating retailers and merchants pertaining to guaranteed sales. Several merchants are partnering with e-wallet issuing companies as preference to shop online has provided an alternative for cash.
With banks and financial institutions adopting mobile wallets to bolster customer relationships and expand penetration of the payment landscape, bank-owned mobile wallet portfolios will witness a pressing growth during the assessment period 2020-2026.
Reduced tariffs on data plans and notable penetration of smartphones in the market has spurred the technology adoption and benefited the trend for digital-only mobile wallets.
Increased transparency of transaction between the service providers and seamless experience across merchants have furthered the significance of mobile wallets. So much so that mobile wallet providers are integrating biometric technology into their digital only mobile wallet portfolio.
Europe's mobile wallet market size is likely to grow at a steady pace in light of the growing footfall of mobile wallet providers in the U.K., France. Germany, Italy and Austria. Europe allegedly had 26 mobile wallets operated by banks (the region had over 50 mobile wallets) in 2019.
Majority of the wallets were rolled out through the collaboration between banks and technology giants. It is pertinent to mention that more than 23 mobile wallets were launched by non-banking fronts. Europe is likely to experience a strong growth rate expanding at over 15% through 2026.
Unprecedented growth of the e-commerce industry has fueled the preference to shop online, with several online merchants offering incentives to customers for using mobile wallets. APAC market reigned supreme with over 50% share in 2019, similar bullish growth trajectory is likely to be witnessed by 2026.
Well-established companies have upped their investments in sophisticated mobile wallet solutions. For instance, Google rolled out the facial recognition and fingerprint scan features in its Google Pay wallet in October 2019. The biometric will function along with PIN/password and further strengthen mobile wallet transactions.
Some of the leading companies profiled are Google LLC, PayPal Holdings, Inc., Apple Inc., and Mastercard Inc., among several others. These companies are touted to infuse funds in R&D activities to gain a competitive edge in the global mobile wallet market.
About the Author:
Sunil Jha has been a part of the content industry for close to 2 years now. Having previously worked as a voice over artist and sportswriter, he now focuses on penning down articles across numerous topics, ranging from business and technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of intensive research and a strategic approach in his pieces.
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