Mobile Payment Market Outlook - 2027
The global mobile payment market size was valued at $1.48 trillion in 2019, and is projected to reach $12.06 trillion by 2027, growing at a CAGR of 30.1% from 2020 to 2027.
Mobile payment is an alternative method for traditional payment systems where cash, cheques or credit cards are the medium of payment. Mobile Payment provide customers a way to purchase any good or services with the help of wireless devices such as smartphones, tablets and others. In addition, Mobile Payment use different technologies such as NFC (Near Field Communication), SMS-based transactional payments and direct mobile billing, for improving the security of the transaction and to provide hassle-free transactions.
Rise in penetration of smartphones across the globe and increase in the m-commerce industry in emerging countries are the major factors driving the growth of the market. In addition, upsurge in adoption of mobile payment services in emerging countries fuels the mobile payment market growth. Furthermore, rising data breaches and security issues in mobile payment service hampers the growth of the market. Furthermore, growth in usage of NFC, RFID and host card emulation technology in the mobile payment domain and rise in demand for fast and hassle-free transaction services is expected to provide a mobile payment market opportunity.
The mobile web payments segment is expected to garner a significant share during the forecast period. Mobile web payments mode of payment is the most popular and preferred method of making mobile payment as users only need a smartphone which drives the growth of the market in this segment. However, the near field communication segment is expected to witness growth at the highest rate during the forecast period, owing to varied features such as higher security, faster transaction processing and growing demand among the end users.
Region wise, the Mobile Payment market was dominated by Asia-Pacific in 2019 and is expected to witness the highest growth rate during the mobile payment market forecast period owing to expansion of the FinTech infrastructure and hefty investments from the private & public players in the region.
The report focuses on the growth prospects, restraints, and mobile payment market trends of the market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the Mobile Payment market.
Segment Review
The global Mobile Payment market is segmented on the basis of payment type, transaction mode, end user, purchase type, application and region. In terms of payment type, the market is bifurcated into proximity and remote. As per transaction mode, the market is segmented into mobile web payments, near field communication, SMS/direct carrier billing, and others. As per end user, the market is bifurcated into personal and business.
In terms of purchase type, it is segmented into airtime transfer & top-ups, money transfers & bill payments, merchandise & coupons, travel & ticketing and others. In terms of application, the market is segmented into media & entertainment, energy & utilities, healthcare, retail, hospitality & transportation and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Transaction Mode
Near Field Communication (NFC) is projected as one of the most lucrative segments.
The key players and mobile payment companies profiled in the mobile payment market analysis are American express company, Apple Inc., Google, LLC, JPMorgan Chase & Co, Mastercard, One97 Communications Limited, PayPal Holdings, Inc., PayU, Samsung and Visa Inc.
Top Impacting Factors
Increase in Demand for Fast and Hassle-free Transaction Services
Mobile payment adoption is the preferred medium for paying or receiving payments, as it offers high-speed and hassle-free services. This in turn attracts all types of mobile payment companies to offer their goods and services via mobile platform. Telecommunication providers, groceries, retailers are now gradually launching their mobile apps through which customers can shop online from anywhere.
By Purchase Type
Money Transfers & Bill Payments accounted for the largest market share in 2019.
In addition, to sustain in the competition, market players need to cater to the needs of customers. For instance, Starbucks initially launched an order and pay program in the U.S., by which customers can order and pay through the mobile app and avoid waiting in the cashier line. The company is gradually launching this service in other parts of the world to offer convenient services to customers and cater to their needs efficiently.
Rise in Adoption of Mobile Payment in Emerging Economies
Emerging economies, such as India and China, have high penetration of smartphones along with increasing 3G and 4G connectivity users. In addition, both the countries account for more than one-third of the world’s population, thus posing maximum market potential for mobile payment. It is anticipated that approximately 90% of the population under the age of 30 years resides in these emerging markets.
By End User
Personal segment is expected to attain signficant growth during the forecasted period.
Growth in middle-class segment, rapid urbanization, rise in literacy level, and increase in tech-savvy youth generation would increase the consumption rate in emerging economies, thus leading to growth of mobile payment policy. Emerging markets are still not well equipped with financial services, and the geographical reach of financial institution in remote locations is limited. Moreover, mobile payments challenge is ensuring robust security measures to protect against fraud and data breaches while maintaining ease of use for consumers.
However, over the past few years, the evolvement of technology and innovations has made it financially viable for financial institutions to provide services such as e-banking and mobile money to unbanked and under-banked population in emerging markets. Kenya is among the emerging markets in mobile payment industry, where approximately two-thirds of the adult population either receive or make payment through their mobile phones, thus reflecting the growth of the Mobile Payment market in emerging economies.
Report Coverage & Deliverables
The Mobile payment market report provides comprehensive analysis, including global and regional market size estimates, growth projections, and key trends. It covers market drivers, challenges, and opportunities, with insights into strategic partnerships and technological advancements. Deliverables include detailed forecasts and competitive strategies from major market players.
Type Insights
The market is segmented into proximity payments (NFC-based) mobile payments, and remote payments (e-commerce and bill payments). Proximity payments are growing rapidly due to the popularity of contactless transactions in retail, while remote payments continue to rise with the expansion of online shopping.
Technology Insights
Technologies driving mobile payment growth include NFC, QR codes, and biometric authentication. NFC facilitates contactless payments, QR codes are popular in emerging markets, and biometrics enhance security. Innovations like blockchain and AI are further boosting market expansion.
Application Insights
The e-commerce sector holds the largest mobile payment share, followed by retail, transportation, and financial services. Mobile payments are widely used for online transactions, in-store purchases, and ticketing.
Regional Insights
North America leads with platforms like Apple Pay and Google Pay. Europe benefits from regulations like PSD2, Asia-Pacific is the fastest-growing with Alipay and WeChat Pay, and Middle East & Africa sees increasing adoption driven by digital transformation.
Key Companies & Market Share Insights
Major players include Apple, Google, PayPal, Alipay, WeChat Pay, and Samsung Pay, dominating the market with innovative solutions and global reach, driving growth through strategic partnerships and expansions.
By Region
Asia-Pacific would exhibit the highest CAGR of 31.2% during 2020-2027.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global Mobile Payment market share along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global Mobile Payment market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the Mobile Payment industry.
- The quantitative analysis of the market for the period 2020–2027 is provided to determine the Mobile Payment market potential.
Mobile Payment Market Report Highlights
| Aspects | Details |
 By Payment Type |
|
 By Transaction Mode |
|
 By End User |
|
 By Purchase Type |
|
 By Application |
|
 By Region |
|
 Key Market Players | JPMORGAN CHASE CO, VISA, INC, ONE COMMUNICATIONS LIMITED, PAYU, AMERICAN EXPRESS COMPANY, MASTERCARD, GOOGLE LLC, APPLE, INC, PAYPAL HOLDINGS, INC, SAMSUNG |
Analyst Review
The adoption of mobile payments has increased over time, due to rise in adoption of smartphones, contactless payment cards and ease of transactions as compared to traditional banks. In addition, various retailers across the developed nations have adopted mobile payments to provide an enhanced customer experience and to increase the adoption of mobile payments in the emerging countries of Asia-Pacific such as India and China. Furthermore, technological advancements and increase in awareness about contactless payments among the consumers can lead to a rapid growth during the forecast period. In addition, surge in adoption of near-field communication (NFC) technology in various sectors such as transport and entertainment, is anticipated to provide lucrative opportunity for the market.
According to CXOs of leading companies, increase in economic strength of developing nations such as China and India, is expected to provide lucrative opportunities for the market growth. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players are focusing toward product development and increasing their geographical presence, owing to growth incompetition among local vendors, in terms of features, quality, and price. In addition, these players are adopting various business strategies to enhance their product offerings and strengthen their foothold in the market. For instance, in April 2020, OCBC Bank partnered with Google LLC to enable their customers peer-to-peer transfers through Google Pay. This partnerships helps Singapore people to pay anyone from their connected OCBC Bank accounts.
The mobile payment market share is 30.1% from 2020 to 2027.
The increase in number of smartphone users and growing e-commerce business are driving the mobile payment market growth.
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The potential customers of mobile payment are individuals, corporates, and others.
American express company, Apple, Google, JPMorgan Chase & Co, Mastercard, One97 Communications Limited, PayPal Holdings, PayU, Samsung and Visa are the leading players in mobile payment market
On the basis of top growing big corporations, we select top 10 players.
North America and Aisa-Pacific will provide more business opportunities for mobile payment in future.
The solutions of mobile payment industry are payments, processing services, customer and channel management, risk management, and others.
The key growth strategies of mobile payment market players are merger and acquisition, product launch, and joint-venture.
The mobile payment market is expected to reach $12.06 trillion by 2027
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