Mobile Payments Market Forecast and Growth Dynamics | 2031

The mobile payments market size is expected to grow at a CAGR of 35.1% from 2023 to 2031. The mobile payments market includes growth prospects owing to the current mobile payments market trends and their foreseeable impact during the forecast period. The mobile payments market is growing due to the rising penetration of smartphones and the huge growth of the e-commerce industry. Technological integration and the rise of digital wallets provide lucrative opportunities for the mobile payments market growth.

Mobile Payments Market Analysis

Mobile payment refers to the transfer or payment of funds, typically to a person, merchant, or business for bills, goods, and services, using a mobile device to execute and confirm the payment. Mobile payment can be person to person (P2P) or consumer-to-consumer (C2C) transaction as well as a consumer-to-business (C2B), business-to-consumer (B2C), or business-to-business (B2B) transaction. Mobile payments are of two types: remote payment and proximity payment. Mobile payments leverage technology to securely transmit information from a mobile device to a merchant’s payment system.

Mobile Payments Market Industry Overview

• The mobile payments market is a booming sector where consumers use their smartphones or other mobile devices to make payments. It's rapidly growing due to its convenience and accessibility.
• Various players, such as tech giants, banks, and startups, compete in this market to offer secure and user-friendly payment solutions.
• Consumer adoption of mobile payments has also been steadily increasing, fuelled by the proliferation of smartphones and a growing acceptance of digital transactions
• With the rise of digital wallets and contactless payment methods, the industry continues to evolve, presenting opportunities for innovation and growth.

Mobile Payments Market Driver

Rising Penetration Of Smartphones To Drive The Mobile Payments Market

• The increasing popularity of smartphones is a major driving force behind the growth of the mobile payments market. As more people around the world own smartphones, they have access to convenient and versatile payment options right at their fingertips. Smartphones enable users to store payment information securely, making transactions quick and hassle-free.
• Moreover, the widespread availability of mobile internet connections allows consumers to make payments anytime and anywhere without the need for physical cash or cards. This convenience appeals to and encourages the adoption of mobile payment solutions.
• Businesses also benefit from the rise in smartphone usage, as they can offer mobile-friendly payment methods to attract customers and enhance their shopping experience. Additionally, the integration of mobile payments into various apps and platforms streamlines the checkout process, reducing abandoned carts and increasing sales.

Mobile Payments Market Report Segmentation Analysis

• Based on type, the mobile payments market is segmented into remote payment and proximity payment. The remote payment segment is expected to hold a substantial mobile payments market share in 2023.
• Remote payments are made online, such as when paying a bill, sending money to someone, or sending a remittance. On the other hand, proximity payments are made at a close distance, usually at a point-of-sale (POS). Remote payments are convenient for merchants who don’t have a physical store or who sell digital items and services, such as SaaS companies.

Mobile Payments Market Share Analysis By Geography

The scope of the mobile payments market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant mobile payments market share. With the widespread use of smartphones and advanced banking infrastructure, consumers are increasingly turning to mobile payment solutions for their transactions. Major players in North America, including tech companies, financial institutions, and retailers, are investing in and expanding their mobile payment offerings to meet the growing demand.

Mobile Payments Market Report Scope

The "Mobile Payments Market Analysis" was carried out based on type, end user and geography. On the basis of type, the market is segmented into remote payment and proximity payment. Based on end users, the market is segmented into BFSI, healthcare, IT & telecom, media & entertainment, retail & E-commerce, transportation, and others. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Mobile Payments Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the mobile payments market. A few recent key market developments are listed below:

• In March 2024, Mastercard and MTN Group Fintech partnered to help consumers and small businesses across Africa transact through mobile payments. With this partnership, Mastercard’s technology will support MTN’s FinTech platform, which has 290 million subscribers and 60 million active monthly MTN Mobile Money (MTN MoMo) wallets.

[Source: Mastercard, Press Release]

• In September 2023, HDFC Bank announced the launch of three digital payment products on a unified payment interface (UPI). These products are UPI 123Pay: Payment via IVR (Interactive Voice Response), UPI Plug-In Service for Merchant Transactions, and AutoPay on QR codes.

[Source: HDFC Bank, Press Release]

Mobile Payments Market Report Coverage & Deliverables

The mobile payments market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Mobile Payments Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.

Mobile Payments Report Scope