Rising Adoption of Contactless Payments is Catalyzing Mobile Payment Technologies Market
According to our latest market study on " Mobile Payment Technologies Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Technology, Payment Type, Type, and End Use," the mobile payment technologies market is expected to grow from US$ 45.36 billion in 2021 to US$ 323.03 billion by 2028 with an estimated CAGR of 32.8% from 2022 to 2028.
Source: The Insight Partners Analysis
The difference between physical and digital commerce is dissolving, and channels are converging increasingly. The in-store purchase experience has shifted significantly closer to the online one due to the strong emphasis on contactless payments especially during the COVID-19 pandemic. Also, before the pandemic, contactless payments were already well-established in a few regions. Touchless payments and/or biometric identification are prevalent in the online purchase experience. The contactless card is the most prevalent kind of touch-free payment. Mobile payments, on the other hand, are gaining popularity due to ease of use and growing acceptance of original equipment manufacturer (OEM) Pay solutions as a retail payment method, contributing to the mobile payment technologies market growth.
Further, mobile payment technologies market ecosystem, many merchant offerings on online payment, such as point of sale and rebate, encourage users to utilize digital payment, driving the demand for mobile payment technologies market. The mobile payment technologies market is soaring due to rapid advancements in e-commerce, mobile payment technologies, and the growing use of mobile wallets. Many banks across several countries have increased their contactless payment limits to reduce the need for a touchpad or cash at the point of sale. Globally, several governments are taking key initiatives to digitize payments, boosting the demand for mobile payment technologies market. For instance, in June 2021, Okay and FSS Technologies (Financial Software and Systems), a worldwide payments technology firm, announced their alliance to deliver focused authentication security to consumer payments, particularly transaction validation and authentication on mobile. With its next-generation products, technology, and solution offerings, FSS is already expanding its commercial potential in Europe. Such initiative will boost the demand for mobile payment technologies market growth.
In the mobile payment technologies market ecosystem, mobile payments began to pick up speed with the growth of e-commerce companies and the introduction of digital wallet providers. In addition, digital wallets offered enticing discounts and cashback to encourage customers to use the payment channel. Due to tempting offers, simplicity of use, and rising smartphone penetration, digital wallet firms have made their way into consumers' phones and pockets. Furthermore, in the mobile payment technologies market ecosystem, to broaden their appeal, digital wallets began pushing customers to use digital wallets for offline POS transactions such as shopping malls, supermarkets, grocery stores, restaurants, and gas stations. These POS transactions will likely make up most of the digital payment platforms in the coming years. Thus, digital wallets are showing rapid growth and play a unique role in the mobile payment technologies market growth.
Financial service companies are recognizing the importance of open banking initiatives and application programming interfaces. Traditional banks understand that they must improve their digital capabilities to compete in the sector and avoid being disintermediated by new entrants with superior offers and services. For instance, numerous financial services companies such as PayPal, Wells Fargo, and Visa are supporting Open Banking projects. Also, in Europe, Open Banking initiatives are progressively becoming the norm because banks are legally required to make account information accessible via APIs under the Revised Payment Services Directive (PSD2), effective from 2018. Open Banking APIs are significant assets for financial services organizations because they allow them to expand service offerings, boost client interaction, and create new digital income channels, which would offer a significant opportunity for the mobile payment technologies market to expand during the forecast period.
Microsoft Corporation; Boku, Inc.; PayPal, Inc.; Alphabet Inc.; Apple, Inc.; AT&T, Inc.; MasterCard International, Inc.; Visa, Inc.; Ant Financial Services Group; and American Express, Co. are among the key mobile payment technologies market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the mobile payment technologies market and its ecosystem.
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