What Has Been the Growth of the Consumer Mobile Payment Market So Far?
The consumer mobile payment market has seen considerable growth due to a variety of factors.
• The size of the consumer mobile payment market has expanded rapidly over the past few years. This growth, projected to continue, will see the market value rise from $82 billion in 2024 to $107.08 billion in 2025, boasting a compound annual growth rate (CAGR) of 30.6%.
This significant growth during the historical period can be attributed to several factors. These include the rise in smartphone usage and internet access, the emerging popularity of digital wallets and mobile payment applications, and the convenience of conducting transactions remotely. Moreover, the increasing preference of customers for secure, contactless payment methods, the widespread acceptance of cashless payments by businesses, the expansion of e-commerce and online shopping, and various government initiatives encouraging the use of digital payments have also contributed greatly.
What Are the Future Growth Projections for the Consumer Mobile Payment Market?
The consumer mobile payment market is expected to maintain its strong growth trajectory in upcoming years.
• The forecast for growth in the consumer mobile payment market is significantly high over the next few years, and it's predicted to reach $307.71 billion in 2029, with a compound annual growth rate (CAGR) of 30.2%.
Factors contributing to this growth within the projected period include the ongoing surge in smartphone usage and access to mobile internet, an increase in mobile payment acceptance across retail and service sectors, the development of peer-to-peer payment platforms and social commerce, a rising need for financial inclusion and accessibility, and widespread adoption of mobile payments in developing markets and populations without banks. Significant trends for the forecast duration encompass the use of biometric authentication integration, an escalated demand for peer-to-peer platforms, creating in-store and online purchasing solutions, a collaboration of providers and merchants, widening options for transportation services, employing QR code technology, messaging platform integrations, and an intensified focus on cybersecurity.
What Are The Core Factors Supporting Growth In The Consumer Mobile Payment Market?
The proliferation of contactless payments is anticipated to propel the expansion of the consumer mobile payment market in the future. This secure transaction mode allows users to tap or wave their card, smartphone, or any wearable gadget near a compatible terminal to make a purchase without physically using a swipe or insert card. The adoption of contactless payments brings about convenience, security, and better customer experiences, making it a significant trend in modern payment mechanisms. The rise in the usage of contactless payments champions both convenience and safety, further boosting the consumer mobile payment market by encouraging the utilization of mobile payment platforms and fast-tracking the movement to cashless transactions. For example, reports from the Consumer Financial Protection Bureau (CFPB), a US-based autonomous agency of the US government, indicated in September 2023, that American consumers spent $65.2 billion through Google Pay in 2022 at stores, a noticeable rise from $24.8 billion in 2021. Hence, the rise in contactless payment penetration is indeed fueling the consumer mobile payment market's growth.
What Are The Major Segments Within The Global Consumer Mobile Payment Market?
The consumer mobile payment market covered in this report is segmented –
1) By Mode of Payment: Remote, Proximity
2) By Technology: Near Field Communication (NFC), Direct Mobile Billing, Mobile Web Payment, Short Message Services, Interactive Voice Response System, Mobile App, Other Technologies
3) By End-User Industry: Retail, Hospitality And Tourism, Information Technology And Telecommunication, Banking, Financial Services, and Insurance (BFSI), Media And Entertainment, Healthcare, Airline, Other End Users
Subsegments:
1) By Remote Payment: Mobile Wallets, Bank Transfers via Mobile Apps, QR Code-Based Payments, Peer-to-Peer Payment Services, Subscription Payments via Mobile Apps, Online Payment Gateways
2) By Proximity Payment: NFC (Near Field Communication) Payments, Bluetooth-Enabled Payments, QR Code Scanning For In-Store Purchases, Contactless Credit Or Debit Card Payments via Mobile, Mobile-Based Ticketing, Mobile Point of Sale (mPOS) Systems
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What New Trends Are Influencing The Consumer Mobile Payment Market?
Leading firms within the consumer mobile payment market are shifting towards the adoption of advanced payment mechanisms like microPay, to streamline digital transactions. A microtransaction commonly refers to a minimal financial transaction, often below a dollar, carried out over the internet for an array of goods or services such as digital content, online shopping, or freelance jobs. For instance, in March 2023, Axis Bank Ltd., a multinational banking and financial services corporation based in India, introduced MicroPay, a 'Pin on Mobile' technology for the facilitation of digital transactions. This technology turns a vendor's smartphone into a location for immediate point-of-sale (POS) execution, hence making digital payments more convenient. It provides them with an economical alternative to accept payments via card, UPI, BQR code, and so on, while ensuring optimal security measures are enforced.
Who Are the Key Players In The Consumer Mobile Payment Market?
Major companies operating in the consumer mobile payment market are:
• Amazon.com Inc.
• Apple Inc.
• Alphabet Inc.
• Samsung Electronics Co. Ltd.
• Alibaba Group Holdings Limited
• American Express Company
• Visa Inc.
• PayPal Holdings Inc.
• MasterCard Incorporated
• Thales Group
• Fiserv Inc.
• Square Inc.
• Bharti Airtel Ltd.
• Fidelity National Information Services Inc.
• Orange Polska SA
• Grubhub Inc.
• Jack Henry & Associates Inc.
• Block Inc.
• ACI Worldwide Inc.
• Money Gram International Inc.
• Dawood Hercules Corporation Limited
• Oxigen S.ervices Pvt. Ltd.
• Mobikwik Systems Ltd.
• ZipCash Card Services Pvt. Ltd.
• Vodafone M-pesa Limited
• One97 Communication India Ltd.
• Citrus Payment Solutions Pvt. Ltd
What Is The Most Dominant Region In The Consumer Mobile Payment Market?
North America was the largest region in the consumer mobile payment market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the consumer mobile payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
