Global Mobile Wallet Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Mobile Wallet Market Overview

Mobile wallets provide exceptional convenience by allowing users to keep multiple cards and payment methods within a single application. They facilitate quick transactions, reducing checkout times, particularly in physical stores. With NFC technology, payments can be made contactlessly, improving security through advanced encryption and tokenisation, while integrated budgeting tools assist in effective financial management, thereby boosting the growth of the mobile wallet market. In July 2023, One 97 Communications Limited (OCL), the parent company of Paytm, launched India’s first NFC Card Soundbox, a dual-purpose mobile QR payment device that merges NFC card payment technology with mobile QR payments.

Mobile wallets enhance loyalty programmes by automatically accumulating rewards and points from eligible purchases, making shopping benefits easier to access. Users can also keep digital receipts for quick retrieval and record-keeping. Furthermore, they allow for instant peer-to-peer payments, facilitate international transactions with lower fees, and reduce the chances of losing physical cards, thus boosting the demand of the mobile wallet market. In December 2023, SAP Emarsys launched its mobile wallet, which allows users to send loyalty passes directly to customers’ mobile wallets, enabling effortless in-store identification, richer customer data, and smoother customer experiences.

Mobile Wallet Market Growth

Users can effortlessly access their payment history for improved financial tracking, while mobile wallets also offer exclusive discount deals directly within the app. The mobile wallet market is also driven by support for multiple platforms, enabling smooth use across various devices. Integrated shopping streamlines in-app purchases, and user-friendly bill payment features effectively manage recurring expenses. In April 2024, Mastercard launched a new mobile virtual card app, allowing virtual commercial cards to be easily incorporated into digital wallets. This innovative app aimed to give financial institutions greater flexibility in providing secure and sustainable contactless payment solutions that businesses increasingly desired.

Mobile wallets enable users to securely store digital identification documents for easy access. As an increasing number of merchants embrace mobile payments, overall usability improves significantly. Cross-platform integration links users to various financial services and apps, enhancing overall management. Additionally, users maintain control over their privacy, determining how much personal information to share with merchants, thereby impacting mobile wallet market revenue. In October 2024, The National Bank of Cambodia and Ant International launched cross-border QR code payments, merging the Bakong payment system with Ant International’s Alipay+. This initiative allowed users of 12 international payment apps to make seamless payments to over one million merchants in Cambodia by scanning KHQR codes.

Industry News

October 2024

Ooredoo Money announced the launch of the Electronic Know Your Customer (eKYC) process, significantly enhancing its mobile wallet service. This integration streamlined the registration process, enabling users to create new accounts and upgrade existing ones digitally, without visiting Ooredoo stores, while also improving security and mPIN code flexibility.

October 2024

Leading financial services platform Mukuru announced the launch of its Mukuru Wallet in Malawi, aimed at meeting the growing demand for convenient, secure fund management and money transfers. The wallet allowed customers to send and receive funds, save, and earn interest, serving as a vital financial tool for underserved communities.

Mobile Wallet Market Trends

Increased Adoption of Contactless Payment

The growth of the mobile wallet industry has seen a significant rise in the adoption of contactless payments, fuelled by consumer demand for convenience and security. Users increasingly prefer the quick and easy process of tapping their smartphones for transactions, especially given recent global events. Retailers are progressively enhancing their payment systems to accommodate contactless technology, improving the overall shopping experience. This trend is expected to persist, with mobile wallets becoming the preferred payment option for both in-store and online purchases as consumers look for efficient and hygienic financial solutions. In March 2024, Federal Bank introduced a RuPay smart keychain named ‘Flash Pay’ for contactless NCMC (National Common Mobility Card) payments at metro stations and PoS terminals. Customers can make payments up to INR 5,000 without a PIN, while those exceeding INR 5,000 will need to authenticate with a PIN. The daily limit at any PoS terminal is set at INR 1 lakh. ‘Flash Pay’ allows users to make secure payments with a simple tap, removing the need for physical cards or cash.

Integration with Loyalty Programs

A significant trend in the mobile wallet market is the integration of loyalty programmes. Brands are recognising the importance of providing rewards directly within mobile wallets, making it simpler for customers to earn and redeem points. This integration boosts customer engagement and promotes repeat business, as users can instantly access their rewards while shopping. Moreover, personalised offers based on purchase history are becoming increasingly prevalent, enabling businesses to customise promotions to individual preferences. Consequently, consumers are more inclined to choose mobile wallets for their convenience and the added value of loyalty rewards. In September 2022, SumUp introduced SumUp Pay, the first digital wallet designed to simplify and enhance local shopping. Free to download in the UK, Germany, and Italy, the app provides users with a £10 bonus upon registration and allows for easy tracking of transaction history. Additionally, small businesses can leverage the rewards programme as an effective, no-cost marketing tool.

Opportunities in the Mobile Wallet Market

Enhanced Security Features

The mobile wallet demand growth is increasingly centred on improving security features to protect user data and foster consumer trust. Innovations like biometric authentication, two-factor authentication, and advanced encryption methods are being adopted to secure transactions. As cyber threats evolve, providers are prioritising security measures to combat fraud and data breaches. Users are more inclined to embrace mobile wallets when they feel assured of the security protocols in place. Therefore, continuous investment in security technology is essential for mobile wallet providers to remain competitive and attract a broader audience. In August 2024, Airtel Payments Bank introduced two new features, Fraud Alarm and Transparent Banking, to bolster digital banking security and transparency. These enhancements, available through the Airtel Thanks app, aim to enrich the customer experience by ensuring safer and more transparent banking practices.

Market Restraints

The mobile wallet market faces several key market restraints. Security concerns, such as cyber threats and data breaches, undermine user trust and hinder adoption. Inconsistent internet access, particularly in developing countries, limits usability. Regulatory challenges add complexity and costs for service providers. Additionally, mobile wallets compete with traditional banking, which some consumers prefer due to familiarity. 
Poor user experience, including complex interfaces and slow processing, can deter potential users. Resistance to change, especially among older demographics accustomed to cash and credit cards, further slows adoption. High transaction fees and limited merchant acceptance also frustrate users, making mobile wallets less appealing compared to more established payment methods.

Mobile Wallet Industry Segmentation

The EMR’s report titled “Mobile Wallet Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Proximity
• Remote Payment

Market Breakup by Technology

• Near Field Communication (NFC)
• Digital Only
• Optical/QR Code
• Text based/Short Message Service

Market Breakup by Application

• Personal
• Business

Market Breakup by Industry Vertical

• Retail and E-commerce
• Hospitality and Transportation
• Media and Entertainment
• Healthcare
• Energy and Utilities
• Telecommunication
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Mobile Wallet Market Share

By Type Insights

Proximity payments offer considerable convenience by enabling users to complete transactions swiftly with a simple tap of their smartphones, removing the need for cash or physical cards. These payments are processed almost instantly, enhancing the shopping experience. The mobile wallet market dynamics and trends are being influenced as advanced security features like encryption and tokenisation make transactions safer, while the contactless aspect promotes hygiene, particularly in the post-pandemic context. Moreover, the increasing adoption of NFC technology by merchants boosts user acceptance, and the integration of loyalty rewards adds further value. In October 2024, ZetaPay launched a new feature that enables proximity payments through its mobile wallet, allowing users to make quick, contactless transactions at participating merchants simply by tapping their smartphones. This innovation aims to enhance customer convenience and improve the overall shopping experience, especially in urban areas.

Remote payments enable transactions from anywhere, allowing for international purchases and bill payments without the need to visit physical stores. This boosts the demand of the mobile wallet market, as they save users time and effort by facilitating online shopping and direct bill payments. With various payment options, including credit/debit cards and digital currencies, remote payments cater to diverse preferences. Seamless integration with e-commerce platforms streamlines the checkout process, while quicker payment processing improves cash flow for businesses. Users can easily track their spending through transaction histories, aiding budgeting efforts. Strong security measures safeguard financial information, and many mobile wallets provide incentives like discounts and cashback to encourage greater usage. In September 2024, PayLink launched its latest remote payment feature within its mobile wallet, allowing users to make seamless online transactions across multiple platforms, including e-commerce and bill payments. With a focus on user-friendly interfaces and enhanced security measures, PayLink aims to simplify the digital payment experience for consumers.

By Technology Analysis

Digital-only wallets provide notable cost efficiency by removing the need for physical infrastructure, leading to reduced fees for users. They allow convenient access to funds at any time if there is internet connectivity. Security measures like encryption and two-factor authentication safeguard transactions, while instant processing enables quick payments and user-friendly interfaces to enhance the overall experience, positively influencing mobile wallet industry revenue. Furthermore, these wallets support environmental sustainability by minimising paper waste. In September 2024, fintech startup ZenWallet launched its digital-only wallet aimed at simplifying financial management. This app includes budgeting tools, expense tracking, and instant payment options, all accessible via smartphones, promoting eco-friendliness and convenience for tech-savvy users.

QR code technology streamlines transactions, enabling users to make swift payments simply by scanning codes. It is a cost-effective solution for businesses, as it removes the need for expensive point-of-sale systems. QR codes are versatile, serving various functions such as promotions and information sharing. They facilitate contactless payments, improve hygiene, and are widely accepted, enhancing the utility of mobile wallets. Furthermore, QR codes enable real-time transaction tracking and can easily integrate with loyalty programmes for rewards, boosting opportunities in the mobile wallet market. In October 2024, QuickPay introduced a new QR code payment feature within its mobile wallet, allowing users to make instant payments by scanning codes at participating merchants. This feature simplifies transactions and promotes contactless payments, addressing the increasing demand for hygienic shopping solutions in retail settings.

By Industry Vertical Insights

Mobile wallets simplify the checkout process, facilitating fast and efficient transactions that enhance customer experiences in both retail and online environments, thus driving the mobile wallet industry growth. They promote greater customer engagement by enabling retailers to provide targeted promotions and loyalty rewards, encouraging repeat purchases. Advanced security measures safeguard sensitive data, while seamless integration with e-commerce platforms boost operational efficiency. Retailers also gain access to valuable analytics and can reach a global market through streamlined international transactions. In July 2024, Australia's retail trade increased by 2.3% to USD 36,160.1 million, with online retail sales hitting USD 4,221.7 million a 15.9% year-on-year rise, amounting to an additional USD 579.0 million, as reported by the ABS.

Mobile wallets offer convenient payment solutions for digital content, facilitating easy purchases of music, movies, and subscriptions, which drives mobile wallet demand. They provide immediate access to content, improving user satisfaction by removing traditional payment obstacles. Integrated loyalty programs enhance brand loyalty, while strong security measures protect financial data. Moreover, mobile wallets enable personalised promotions based on user behaviour and ensure real-time transaction processing for instant content access, all while maintaining compatibility across various platforms for seamless payments. According to the 2022 PIB report, Indian youth have gained access to technology, with broadband users rising from 60 million to 810 million and smartphone users increasing from 150 million to 750 million over the past eight years.

Mobile Wallet Market Regional Insights

Europe Mobile Wallet Market Analysis

Europe is witnessing a notable increase in mobile wallet demand, particularly in Germany, Italy, and France. Mobile wallets improve security through features such as encryption and biometric authentication, safeguarding user data and reducing fraud risks. They also incorporate loyalty programmes, enabling users to store loyalty cards and effortlessly earn and redeem points. In September 2023, Revolut launched a digital wallet feature that allows users to make cryptocurrency payments at point-of-sale terminals throughout Europe, broadening its service offerings to meet the rising demand for crypto transactions.

North America Mobile Wallet Market Trends

The North American mobile wallet market value is set for substantial growth, supported by major companies such as Apple Pay, Google Pay and PayPal. Mobile wallets provide built-in budgeting tools for effortless tracking of spending and effective financial management, while also facilitating international transactions, enabling users to shop globally without the hassle of currency conversion. In March 2024, PayPal Complete Payments was launched for small and medium-sized enterprises in Canada. This solution allows small businesses in Canada to accept various payment methods, including PayPal, Apple Pay®, Google Pay™, credit and debit cards, and more than 20 alternative payment options from across the globe.

Asia Pacific Mobile Wallet Market Insights

In India brands such as Paytm, PhonePe and Mobikwik highlight the growing mobile wallet market share in the Asia-Pacific region. The Asia-Pacific region has seen swift adoption of mobile wallets, driven by widespread smartphone and internet access. Advanced security measures, such as encryption and biometric authentication, safeguard user data and help prevent fraud. In June 2024, Alipay launched its updated app across several Asia-Pacific countries, introducing QR code payment features and improved integration with local merchants to enhance the user experience.

Latin America Mobile Wallet Market Analysis

Key markets in the region include Brazil, Mexico, and Argentina, where there is significant demand for mobile wallet market. Mobile wallets improve e-commerce by simplifying online payments, which boosts consumer engagement. They offer businesses valuable transaction insights for targeted marketing and enhanced services. In April 2024, Brazilian fintech Nubank introduced a mobile wallet feature, enabling seamless payments and transfers through the app, alongside budgeting tools for better user experience.

Middle East and Africa Mobile Wallet Market Driving Factors

The African mobile wallet market is growing, especially in Egypt, Ethiopia, and Morocco. Mobile wallets improve financial accessibility by providing services such as loans and insurance, thereby integrating users into the financial ecosystem. They also enable cross-border transactions, supporting trade and personal remittances. In May 2024, Revolut, a global financial app with over 40 million users, announced an expansion of its international transfer feature. The company introduced 14 new payment corridors across nine African countries, using three digital wallets: Airtel Money, Orange Money, and MTN.

Innovative Startups in the Mobile Wallet Market

Innovative startups in the mobile wallet market offer numerous benefits, including agility in adapting to consumer needs and leveraging disruptive technologies like AI and blockchain for enhanced security. They target niche segments, provide cost-effective solutions, and prioritise user-centric design for better experiences. Collaborations with other fintech firms foster innovation, while a focus on sustainability promotes eco-friendly practices. Startups also experiment with dynamic loyalty programs, utilise data analytics to refine offerings, and invest in user education, thereby building trust and encouraging adoption among less tech-savvy consumers. Overall, these startups play a crucial role in advancing the mobile wallet landscape.

August 2023 - YAP, a startup in the digital wallet space, launched an app designed specifically for millennials and Gen Z. It includes budgeting tools, social payment features, and cryptocurrency integration, aiming to engage younger users in their financial management. The app also encourages financial literacy and provides enticing rewards for its users.

July 2023 – PayMyWay introduced its mobile wallet, which streamlines peer-to-peer transactions. Aimed at small businesses and individuals, the platform includes functionalities like group payments and bill-splitting. Committed to promoting financial inclusivity, PayMyWay seeks to make digital transactions accessible to all.

Competitive Landscape

The mobile wallet market key players in digital payment platforms enable secure transactions for both consumers and businesses. They transformed online payments by allowing users to send and receive money via email and mobile devices. Their services include payment processing, money transfers, and e-commerce solutions, accommodating various currencies. Widely adopted by millions of merchants and consumers globally, these platforms significantly enhance the convenience of online shopping and digital commerce.

Key Industry Players

PayPal Holdings Inc.: Established in 1998 and headquartered in San Jose, California, PayPal revolutionised online payments by enabling secure transactions for consumers and businesses. It offers a range of services, including payment processing and money transfers, widely used globally.

Alphabet Inc.: Founded in 2015 and based in Mountain View, California, Alphabet Inc. is the parent company of Google. It focuses on technology and innovation across various sectors, including search engines, advertising, and cloud computing.

American Express Company: Established in 1850 and headquartered in New York City, American Express is a multinational financial services corporation. It is known for its charge cards, credit cards, and travel-related services.

Alipay Singapore E-Commerce Private Limited: Launched in 2010, Alipay operates as a subsidiary of Ant Group, headquartered in Singapore. It provides a leading digital payment platform, facilitating secure transactions and enhancing e-commerce in the Asia-Pacific region.

Other market key players in the mobile wallet market report are J.P. Morgan Chase & Co., Vodafone Group Plc, Samsung Electronics Co., Ltd., Apple, Inc., Amazon.com, Inc. and One97 Communications Limited among others.

Recent Developments

October 2024

Monzo introduced a new mobile wallet feature that enables users to store loyalty cards and make contactless payments effortlessly. This update enhances the app’s capabilities, providing greater convenience and encouraging better financial management for users.

September 2024

Commonwealth Bank launched its digital wallet, which includes cryptocurrency support and instant payment options. This new feature aims to improve the customer experience by allowing users to perform transactions seamlessly while accessing various banking services all within one app.

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