The mobile wallet and payment technologies industry is shifting toward digitization. The rapid surge in the adoption of smartphones, growing internet penetration and rising government initiatives to develop smart cities in many countries is driving strong demand. The industry is geared for significant expansion, with BCC Research estimating the global market for mobile wallet and payment technologies to reach $12.6 trillion by 2027, at a compound annual growth rate (CAGR) of 23.1% between 2022-2027.
With impressive growth on the horizon, we’re diving into the key factors driving the industry forward.
More than half of the world’s internet traffic comes from mobile devices. The major reason for the rise in demand and growth of the e-commerce industry is the convenience offered by the mobile wallet and payment gateways used on these devices. Using a mobile wallet enables shoppers to buy things from online stores via automated payment gateways. The use of mobile wallets in the e-commerce sector enhances the overall shopping experience for customers.
In addition, mobile wallet and payment transaction volume is expected to grow aggressively in emerging regions such as APAC and MEA, due to the surge in internet penetration, increasing users and the online shopping market. As of Nov. 2022, Alipay, a payment platform, has around 1.3 billion users globally. Consumers today are more inclined to use mobile pay options than debit and credit cards, since mobile options are more convenient, reducing the use of cards. The role of mobile commerce, or m-commerce, is significantly boosting the market for mobile wallet and payment technologies since smartphones and mobile devices are more widespread than bank accounts or computers.