Europe and South America Mobile Wallet and Payment Market is expected to reach US$ 21.1 Billion by 2031

Europe and South America Mobile Wallet and Payment Market Forecast to 2031: Key Insights

According to our latest study on "Europe and South America Mobile Wallet and Payment Market –Regional Share, Trend, and Growth Opportunity Analysis – by Type, Technology, End User, and Geography," the Europe and South America mobile wallet and payment market size was valued at US$ 3.1 billion in 2023 and is projected to reach US$ 21.1 billion by 2031. The market is estimated to record a CAGR of 27.1% from 2023 to 2031. Surging demand for contactless payment solutions is one of the major Europe and South America mobile wallet and payment market trend.

According to Visa, digital wallets are anticipated to surpass 50% of all global e-commerce transactions by 2024. Electronic wallets have the potential to improve customer loyalty and establish payment cards as primary digital payment methods. Visa contributes significantly to the enhancement of digital wallet services by providing financial support, facilitating fund withdrawals, and granting access to its extensive infrastructure. Notably, digital payments have achieved a 64% market penetration in the retail sector of Latin America & the Caribbean. The European Mobile Payment Systems Association (EMPSA) emphasizes enabling the use of different mobile payment systems internationally by fostering international collaborations. Founded by several mobile payment providers, the association has seen significant growth in its membership. It has united 11 mobile payment systems, bringing together over 90 million mobile payment users, more than 1 million merchant acceptance points, and many European banks, thereby facilitating several billion transactions every year. In the long run, the EMPSA aims to facilitate effortless mobile payments throughout Europe by offering roaming solutions among payment systems coexisting in a collaborative ecosystem.

Europe and South America Mobile Wallet and Payment Market

In South America, the rising popularity and usage of mobile devices favor the rapid growth of the mobile wallets and digital payment market. Latin America has witnessed the rise of different mobile wallet services—for example, Daviplata in Colombia has shown impressive expansion as it reported almost doubling its client base in 2021. Both international companies such as PayPal and local ventures such as Nubank are striving to fulfill the need for streamlined payment options in Brazil, which is expected to drive the use of digital wallets in the country. Service providers are also making efforts to improve the security and convenience of mobile payments by focusing on integrating mobile wallets with financial services and applications in response to the increasing popularity of digital payment methods.

Rising Popularity of Mobile Payments to Drive Europe and South America Mobile Wallet and Payment Market Growth

The popularity of mobile payment and digital wallet services is on the rise in Europe, with an upsurge in the involvement of internet users in online shopping, thereby driving the Europe and South America mobile wallet and payment market growth. At present, laptops and desktop computers are the main devices utilized for making purchases on the internet; however, there is a prominent trend of using mobile devices such as smartphones and tablets for making these purchases. Further, the number of Europeans who are likely to conduct online transactions through their mobile devices is estimated to rise, propelling the demand for mobile payments and digital wallet solutions. Globally used e-wallets such as PayPal, Apple Pay, and Google Wallet have a significant presence in Europe. Nonetheless, local startups are emerging rapidly to challenge these international giants. The use of digital wallets is also increasing with the growing consumer preference for making digital payments to complete cross-border transactions.

Europe and South America Mobile Wallet and Payment Market: Segmental Overview

Based on type, the market is categorized into remote and proximity. The proximity segment held the largest the Europe and South America mobile wallet and payment market share in 2023. On the basis of technology, the market is divided into NFC, QR code, text-based, and others. The QR code segment dominated the market in 2023. Based on end user, the market is segmented into personal and business. The personal segment held a larger Europe and South America mobile wallet and payment market share in 2023. Mobile wallets are used for transferring money online to other individuals by using their personal bank, credit union accounts, or mobile applications. Mobile wallets and payment solutions have become popular as a "contactless" payment mechanism. Mobile wallets and payment solutions can also help users avoid in-person risks linked with carrying cash and credit cards, and these options also safeguard them from the ever-increasing risk of card skimming. People of all ages own mobile phones and use them whenever feasible. As a result, application or software development companies are developing mobile wallet and payment solutions as well as mobile apps with bank account integration to streamline and simplify monetary transactions. The most popular mobile wallet and payment solutions used for personal purposes include PayPal, Apple Pay, Cash App, Google Pay, and Square Cash. According to Wallet Factory LLC, all payments made with PayPal or Square Cash are almost instant and take no longer than 5 minutes.

Europe and South America Mobile Wallet and Payment Market Analysis: Competitive Landscape and Key Developments

The Europe and South America mobile wallet and payment market report emphasizes key factors driving the market and prominent players' strategic developments. Apple Inc, Alphabet Inc, AT&T Inc, Paypal Holdings Inc, Samsung Electronics Co Ltd, Mastercard Inc, Fitbit LLC, American Express, Visa Inc, and ACI Worldwide Inc are among the prominent players profiled in the Europe and South America mobile wallet and payment market report. The market players focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.

• In January 2024, Apple Inc announced changes to iOS, Safari, and the App Store in the European Union (EU) to ensure compliance with the Digital Markets Act (DMA). The changes include more than 600 new application programming interfaces (APIs), expanded app analytics, functionality for alternative browser engines, and options for processing app payments and distributing iOS apps.

• In June 2023, Alphabet (Google LLC) announced the fifth Google for Brazil event, which focuses on a series of new initiatives and partnerships, and the use of artificial intelligence to support Brazil's digital transformation. Harnessing the potential of this event, Brazilians using Google Wallet are likely to become the world’s set of customers with access to a new Google Wallet feature that allows payments through QR codes. The new feature makes any Android device capable of making digital payments with credit and debit cards by using its camera to scan dynamic codes in payment machines.

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