The Global Market for Mobile Wallet is Forecast to Reach US$2.7 Trillion by 2020

Proliferation of Smartphones & Mobile Internet Drives the Global Mobile Wallet Market, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Mobile Wallet. The global market for Mobile Wallet is forecast to reach US$2.7 trillion by 2020, driven by the proliferation of smartphones, Tablet PCs, mobile Internet, strong governmental support for cashless transactions, and the convenience offered by mobile payments.

Mobile wallets or digital wallets hold the potential to revolutionize the payment industry, and usher in the era of cashless societies. Digital wallets are emerging as a disruptive model threatens to erode the market for traditional plastic cards and change the dynamics of the electronic payment (e-payment) industry. Mobile phones are poised to take over the roles of physical wallets, including ID storage and payments. Following a slow start, the global eWallets market is gaining momentum, leveraging the ubiquity of smartphones and tablet PCs, and the growing penetration of mobile Internet services. The eWallet market is also benefitting from the strong government push for cashless transactions in order to boost tax receipts, improve transparency of the financial system, and reduce overall cost of transactions. In addition, mobile payments offer a platform for facilitating financial inclusion of the masses that remain out of the reach of the traditional banking and finance sector. Growing awareness and convenience of cashless transactions are catapulting consumer adoption to new heights. Besides in-store payments and mCommerce, mobile ticketing and mobile money transfer are the other major application areas for digital wallets. In addition, mobile wallets enable customers to purchase digital content, such as mobile gaming apps.

Mobile wallets are increasingly adopted by retailers across the globe as a means to ramp up revenues, reduce operating costs, avert fraud-related losses, and improve consumer satisfaction. Digital wallets also offer a viable platform for multifarious entities, such as banking and financial service providers, telecommunication network operators, and Chat apps developers to differentiate their offerings and boost brand recognition. The inclusion of loyalty schemes and promotions in digital wallets represents a win-win scenario for merchants and bankers as well as consumers. Improving safety, security and ease of mobile payments using innovative technologies, such as biometric authentication and mobile Point-of-Sale terminal (mPOS), and increasing merchant and banker acceptance of cashless payment modes are expected to bolster market prospects. Given the high fragmentation of the digital wallet industry, interoperability among services providers and platforms is pivotal for improving consumer choice. Though the focus of eWallet providers is largely on mass retail consumers, digital corporate cards are expected to emerge and gain momentum as the infrastructure expands, thereby cannibalizing the market for traditional corporate credit and debit cards.

While mobile payments have been predominantly based on SMS, USSD and WAP payment technologies over the years, the market is moving up to Near Field Communication (NFC), and advanced non-NFC technologies. As stated by the new market research report on Mobile Wallet, Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market, with a CAGR of 33% over the analysis period of 2014-2020. The retail sector represents the largest end-use market for mobile wallets, driven by the implementation of mobile payment systems and loyalty schemes at merchant POS terminals in retail stores across the world.

Major players covered in the report include Alipay Network Technology Co. Ltd., Amazon.com Inc., American Express Company, Apple Inc., AT&T Inc., BlackBerry Limited, Citrus Payment Solutions, First Data Corp., Google Inc., LevelUp, LifeLock Inc., MasterCard Inc., Merchant Customer Exchange LLC, Microsoft Corp. Inc., Monitise Plc., MMP Mobi Wallet Payment Systems Limited, One MobiKwik Systems Pvt. Ltd., Oxigen Services (India) Private Limited, PayOne, PayPal Inc, Paytm, Qiwi plc., Samsung Electronics Co. Ltd., Square Inc., Telepin Software, Visa, Inc., Vodafone m-pesa Limited , and Y-Cash Software Solutions Pvt. Ltd.

The research report titled “Mobile Wallet: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets, such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, South Korea, and Rest of Asia-Pacific), Middle East & Africa, and Latin America (Brazil, and Rest of Latin America). The market is also analyzed by end-use application segments: Retail, Vending Machines, Grocery Store, and Others.