The global mobile payments market is estimated to reach USD 3,388 billion by 2022, growing at a CAGR of 33.4 % from 2016 – 2022, a recent report shows.
The report was published by Allied Market Research an is titled "Mobile Payments Market by Mode of Transaction (SMS, WAP and NFC), Types of Mobile Payment (Mobile Wallets/Bank Cards and Mobile Money), and Application (Entertainment, Energy & Utilities, healthcare, Retail, Hospitality & Transportation, and Others): Global Opportunity Analysis and Industry Forecast, 2014-2022".
According to this study, Asia-Pacific is expected to witness the highest growth during the forecast period. Mobile payments through short message services (SMS) mode dominate the market, whereas near field communication (NFC) would witness growth in its market share in coming years and is anticipated to grow at a robust rate.
Increased penetration of smartphones, growth in m-commerce industry, change in lifestyle, and the need for quick and hassle-free transactions are the major factors that drive the market growth. In order to expand their market share, global players such as Paytm, MasterCard, Apple, and Samsung have launched new mobile payment apps and mobile wallets that allow customers to make payments with their phones/smartphone.
By mode of transaction, in 2015, SMS accounted for about 54% of the overall mobile payments market revenue, followed by wireless application protocol (WAP), which covers one third of the overall mobile payments market size. However, NFC has high growth potential and is anticipated to exhibit CAGR of around 36% during the forecast period. Growing shipment of NFC enabled smartphones and increased merchant support for NFC technology across the point of sale terminals would fuel the growth of this segment.
Mobile payments through mobile wallets/bank cards are anticipated to witness the higher growth rate during the forecast period, owing to the increase in incentivization given by the market players for payment done via wallet and card. In addition, companies such as Paytm, which provide mobile wallet have collaborated with Uber to cater a larger customer base and make customer's rides hassle free.
Retail segment is projected to maintain its lead in the overall mobile payments market as the rising number of tech-savvy consumers are opting to shop online with their smartphone. Similarly, hospitality & transportation segment is anticipated to witness robust growth as these service providers have started to offer their services through online apps, since consumers are frequently making their travel bookings through mobile/smartphones.
Asia-Pacific generated the maximum revenue in 2015. Moreover, it is anticipated to maintain its lead during the forecast period. However, North America and Europe have also indicated high growth potential, given that the customers are offered discounts and promotional offers while making mobile payments through mobile wallets and apps.