Mobile Payment technology has aided in closing the gap between the banked and unbanked

The global mobile payment market held USD 1.5 trillion in 2020 and it anticipated to reach USD 18.9 trillion in 2030, with 28.60% CAGR. This information is published by Decision foresight, in its report, titled, “Global Mobile Payment Market, 2020-2030.”Purchases or transactions performed by regulatory organisations under financial supervision via a mobile device are referred to as mobile payments. This solution eliminates traditional options such as checks and cash, as well as credit cards, providing end customers with a high level of convenience.

With the ever-increasing global economy, smart phones have become a valuable commodity for everyone. Similarly, the internet has become an integral part of many people's lives. It has boosted the global prevalence of smart phones and internet users, resulting in the growth of the mobile payment business. The introduction of low-cost cell phones that can handle mobile payments has boosted overall demand.

COVID-19 Impact: Affirmative Commercial Business Sales Observed amid Pandemic

The COVID-19 pandemic's breakout has had a beneficial influence on the mobile payments sector. Following the pandemic's onset, several firms formed agreements to satisfy the rising need for mobile payments.. Mobile payments are gaining momentum across a variety of use cases, but acceptance has not been consistent. In 2019, in-person, near-field communication-based payments remained confined to a tiny percentage of customers, while peer-to-peer payments were adopted by most of the U.S. consumers. COVID-19, on the other hand, has reignited interest in contactless payments, such as NFC, due to concerns about catching the virus. Mobile payment services are quickly extending their capabilities and offering a diverse variety of payment and non-payment options. They're rapidly promoting themselves as alternatives to traditional retail banking.

 

Segmentation

On the basis of mode of transaction, the global mobile payment market is segmented into NFC (near field communication), SMS (short message service), and WAP (wireless application protocol). On the basis of type of mobile payment, the market is categorized into mobile wallet, bank cards, and mobile money. On the basis of application, the market is divided into entertainment, healthcare, energy and utilities, transportation & hospitality, and others and geography. Over the forecast period, the near-field communication segment is predicted to develop at the quickest rate. Merchants may use NFC technology to incorporate customer loyalty programmes into their payment procedures, and consumers can use their mobile phones to redeem coupons right away. The expansion of the category is projected to be fueled by the emergence of e-commerce platforms and the ongoing use of cutting-edge technology in financial transactions.

 

Drivers and Restraints

Demand for convenient and trouble-free purchases of goods and services grows to Drive Market Growth

Because customers no longer need to rely on traditional payment methods and can instead utilise a centralised system to perform payment and remittance services, this technology has aided in closing the gap between the banked and unbanked. As a consequence, organisations and regulatory authorities have benefited from positive efforts, which are particularly beneficial in areas where bank penetration is limited.

Consumer preference for digital and cashless payments is rising as demand for convenient and trouble-free purchases of goods and services grows. Several major giants, including as Apple and Samsung, have developed new methods to broaden their scope and obtain a larger part of the market.

Security issues connected with mobile payments, on the other hand, are impeding the market's expansion. There is legitimate worry that electronic payment systems, particularly payment apps, might expose consumers and their data to fraud or exploitation. It is possible to hack into a phone. Apps aren't completely secure. With more people working from home and users exploring new e-commerce sites to purchase products and services, nefarious parties took advantage of the COVID-19 issue to ramp up cyber assaults. According to the Swiss National Cyber Security Centre, cyber intrusions such as phishing, fake websites, and direct attacks were three times greater than usual in April 2021. Furthermore, According to Payvision, a financial services company, mobile payment fraud accounted for 27 percent of online sales in 2019, up from 18 percent in 2018. Account takeovers were the most common kind of payment fraud in 2018, accounting for 89 percent of all digital fraud losses. Account takeover fraud occurs when a fraudster uses a stolen device or mobile malware to obtain access to a customer's account.

Regional Insights

North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa are the regions in which the market is divided. Because of the availability of sophisticated communications and IT infrastructure in the area, particularly in the United States, North America held the largest proportion of the entire market. Furthermore, the region's corporate mobility is expanding, and the proliferation of mobile devices is increasing market revenue. North American workers are ahead of their worldwide counterparts in terms of BYOD adoption. Several major market participants are based in North America. The area has also been a pioneer in adopting cutting-edge technology. The use of mobile payments is also being driven by the rising number of unmanned stores in the United States.

The Asia-Pacific region is becoming increasingly well-known for its electronic payment mechanisms. Countries such as India, Japan, China, and Australia are creating a stable environment for the mobile payment business to flourish. According to Forbes, China's and France's central banks are working on a digital yuan and euro, respectively, while the US has been talking about a digital dollar for a while and Sweden is operating an e-krona trial project through the end of 2020. Payments are getting more digitalized on both a micro and macro level, and the trend is building. The demonetization act in India has raised awareness regarding alternative payment methods to cash (which is a major medium of the transaction all over the Asia-Pacific).In India, Visa Inc. claims to have issued more than 20 million contactless cards in 2018. Visa's contactless payment method and QR transactions account for more than 25% of all transactions processed in India, according to the company. Countries like Australia, on the other hand, are transforming into mobile payment market behemoths. According to Visa Inc., electronic transactions account for 79 percent of all transactions in the country, with cash accounting for only 21% of all transactions.

Competitive Landscape

Market players are investing heavily in start-ups and midsized businesses in order to provide cost-effective solutions.

Key companies have been able to extend their businesses into numerous end-user industries and acquire a competitive advantage as a result of their investments in sophisticated technology. Established market players are investing heavily in start-ups and midsized businesses in order to provide cost-effective solutions to end-user sectors like as healthcare, manufacturing, retail, and others. Indian based mobile payments company Pine Labs has paid $45 million for the payments and discovery platform Fave, which is located in Kuala Lumpur. The merger will aid the merchant commerce startup's efforts to establish a consumer vertical in India and Southeast Asian nations including Malaysia, Singapore, and Indonesia. The deal also clears the way for Fave to launch its payments app in India, allowing Indian customers to transact at over 5 lakh Pine Labs-powered physical retail locations and merchants.

Industry Development

May 2021: According to the business standard, Walmart-owned digital payments startup PhonePe is in the process of buying home-grown mobile platform Indus OS for $60 million in cash. The purchase will aid PhonePe's aim of integrating multiple applications on its platform through its "super app and vernacular language" approach. PhonePe will be able to compete more effectively with firms like Alibaba-backed Paytm, Google Pay, and Amazon Pay, which are developing comparable capabilities.

Sep 2021: Following Google Pay's announcement that its platform may be used to register fixed deposits, Amazon Pay announced a similar partnership with a wealth management platform in September .Kuvera.in stated that it will give "its services, products, and technical know-how to create an exclusive experience for Amazon Pay's users to facilitate long-term investments in mutual funds, fixed deposits, and more”.

List of Key Players Covered in this Market Report

·              ALIBABA

·              ONE COMMUNICATIONS LIMITED

·              PAYPAL HOLDINGS, INC

·              PINELABS

·              PAYU

·              MONEY GRAM INTERNATIONAL

·              TENCENT

·              SAMSUNG

·              VISA, INC

·              AMERICAN EXPRESS COMPANY

·              APPLE, INC

·              AMAZON LLC

·              GOOGLE LLC

·              JPMORGAN CHASE CO

·              MASTERCARD

·              WALMART

 

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