Online Retail Mobile Payment Transactions Market Expected to Reach $10 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Online Retail Mobile Payment Transactions Market," The online retail mobile payment transactions market was valued at $993.54 billion in 2021, and is estimated to reach $10 billion by 2031, growing at a CAGR of 26.8% from 2022 to 2031.

Access to high-speed internet and increase in use of online retail mobile payment transactions among retailers drive the growth of global online retail mobile payment transactions market. Furthermore, rise in penetration of smartphones across the globe and development of the payment industry in emerging countries are the major online retail mobile payment transactions market trends. However, rise in data breaches and security issues in mobile payments hamper the growth of the market. Restaurants, retailers, and merchants are the largest end user segments that adopted mobile payment method in their existing businesses.

Furthermore, the global online retail mobile payment transactions market is in its developing phase, and exhibits high growth potential, due to rise in need for operational efficiency & transparency during transactions and surge in demand for customized digitalized payment options globally. For instance, according to a study conducted by Mastercard in 2020, 95% of South African consumers consider using at least one emerging payment method, such as contactless, mobile payments, cryptocurrency, or QR code in the next year. In addition, as several stores were closed to maintain social distancing, retailers worldwide moved their businesses online and adopted the mobile payment transactions and other contactless transaction mode.

By end user, the personal segment acquired major share. This is attributed to the fact that it helps customers to recharge mobile phone accounts, settle personal loans, and purchase services, such as software license & online game cards and airline & movie tickets.

Region wise, Asia-Pacific dominated the market in 2021, and is expected to maintain this trend during the forecast period. This is attributed to the fact that rise in interest of smartphone manufacturers in the mobile wallet solution is driving the online retail mobile payment transactions market growth. Smartphone manufacturers, such as Apple, Samsung, and Xiaomi, are working on deploying NFC chips and QR code scanner into their smartphones to provide seamless connectivity for the payments in the retail industry.

The demand for online retail mobile payment transactions has increased considerably during the COVID-19 pandemic. This is attributed to increased familiarity toward mobile payments among consumers and initiatives by governing bodies across the globe are to curb the spread of virus by initiating various policies for conducting payments. Moreover, online retail mobile payment transactions method is expected to be intact by economic downturn, and is anticipated to remain high during the forecast period. Thus, these factors promoted the growth of the online retail mobile payment transactions industry during the pandemic situation.     

KEY FINDINGS OF THE STUDY

• By age group, the 18 to 30 years segment led the highest online retail mobile payment transactions market share, in terms of revenue in 2021.
• On the basis of payment type, the pull payment segment is expected to exhibit the fastest growth rate during the forecast period.
• Region wise, Asia-Pacific generated the highest revenue in 2021 in online retail mobile payment transactions market size.  

The key players operating in the online retail mobile payment transactions market analysis include ACI Worldwide, Inc., Alipay.com, Amazon Payments, Inc., American Express, Apple Inc., Block, Inc., FIS, Google, Ingenico, JPMorgan Chase & Co., Mastercard, One97 Communications Limited, PayPal Holdings Inc., Samsung, Visa Inc., PayU, and Obopay. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.