Mobile Wallet and Payment Market Size and Growth 2031

The global mobile wallet and payment market size was valued at US$ 10.28 billion in 2023 and is expected to reach US$ 71.28 billion by 2031. The market is estimated to record a CAGR of 27.4% from 2023 to 2031. The emergence of real-time payments in developing nations is expected to be a significant mobile wallet and payment market trend in the upcoming years.

Mobile Wallet and Payment Market Analysis

Mobile wallet and payment applications have evolved dramatically over time to offer a seamless and convenient experience to users. It began with simple SMS-based payment systems and has progressed to incorporate modern technology such as NFC and biometrics for secure authentication. The implementation of UPI (i.e., Unified Payments Interface) has transformed mobile wallets and payments by allowing users to make smooth peer-to-peer transactions directly from bank accounts. With advancements in technology, ease of use, increased security measures, and continuous innovation, the future of the mobile wallet and payment market appears highly promising. As mobile commerce and digital wallets become more popular, contactless payments are becoming more widely accepted. A recent study found that over half of the 3,000 customers interviewed used their cell phones to pay in-store at Starbucks (49%), McDonald's (43%), and Walmart (41%). In place of app-based or digital wallet transactions, the majority of contactless payments will be enabled by hardware equipped with near-field communication (NFC). This includes NFC-enabled mobile phones and card readers. Retailers must acquire and install the infrastructure for NFC point-of-sale (POS) terminals, incurring additional expenses not seen in soft POS systems, which are smart devices that store both NFC and payment data. The emergence of several mobile app payment gateways, such as Razorpay mobile app, allows businesses to easily and more securely accept UPI payments, NFC payments, and payments via POS terminals.

Mobile Wallet and Payment Market Overview

A mobile wallet is a type of virtual wallet that contains credit card, debit, loyalty card information, tickets, and other digital assets. It is accessed through an app installed on mobile devices such as smartphones or tablets. A mobile wallet allows users to pay for everyday services directly from their smartphones or other mobile devices, eliminating the need to carry cash or cards. It is not only handy but also safer and faster and enables users to make contactless payments. Furthermore, wallets such as Google Pay and Apple Pay securely store credit card information and allow users to make payments both online and in stores. The rising demand for mobile wallets and payment reflects a substantial shift in financial transaction methods.

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Mobile Wallet and Payment Market: Strategic Insights

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Mobile Wallet and Payment Market Drivers and Opportunities

Growing Demand for Contactless Payment Solutions Favors Market Growth

Contactless payment adoption has risen dramatically across the globe, as it eliminates consumers' need to carry cash while making purchases. Digital payments, which include near-field communication (NFC) and QR code-based transactions, are becoming more popular. Consumers are highly preferring contactless payment solutions for speeding financial transactions. The demand for a quick, safe, and clean payment method, particularly in the post-pandemic era, has accelerated the use of contactless technology. This has transformed the checkout experience in both physical and digital stores, making faster and more convenient transactions.

Increasing Government Initiatives for Adoption of Mobile Wallet and Payment Solutions to Create Growth Opportunities in Market

Mobile wallet and payment solutions are critical for consumers and businesses, as they increase accessibility, improve security, reduce transactional costs, and make payments faster. Increasing technological advancements, rising consumer demands for two-factor authentication (2FA) security, and other factors are boosting the demand for mobile wallets and payment solutions. This also encourages government bodies to take initiatives to support the adoption of mobile wallets and payment solutions in order to secure their business from financial risks. For instance, the DigiDhan Mission, established under the Ministry of Electronics and Information Technology (MeitY) in India, aims to promote a cashless economy and provide a smooth digital payment experience for all citizens. Similarly, Al Etihad Payments (AEP)—a subsidiary of the Central Bank of the UAE (CBUAE)—launched Aani in October 2023. This instant payment platform promises to change digital payments in the UAE. Aani, a crucial initiative under the CBUAE's Financial Infrastructure Transformation (FIT) program, represents a new age of safe and rapid digital payments.

Mobile Wallet and Payment Market Report Segmentation Analysis

Key segments that contributed to the derivation of the mobile wallet and payment market analysis are type, technology, and end user.

• Based on type, the market is categorized into remote and proximity. The proximity segment dominated the global mobile wallet and payment market 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 Global mobile wallet and payment market is segmented into personal and business. The personal segment held a larger market share in 2023.

Mobile Wallet and Payment Market Share Analysis by Geography

The geographic scope of the global mobile wallet and payment market report is mainly divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. Asia Pacific dominated the market in 2023. Mobile technology and digital financial services are transforming the social and economic environment of Asia Pacific. As more individuals have access to the Internet and smartphones, transactions via digital payment methods are on the rise. For instance, according to a survey conducted by PayPal, 35% of regional respondents use mobile wallets, while 13% utilize contactless payments such as digital banking and online transactions on their mobile phones. The major nations in Asia Pacific that are becoming cashless economies are China, Japan, India, and Malaysia. These countries are emerging as world leaders in the e-wallet industry due to increasing government initiatives for cashless transactions, as well as the growing popularity of business models that allow digital payment methods.

Mobile Wallet and Payment Market Regional Insights

The regional trends and factors influencing the Mobile Wallet and Payment Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Mobile Wallet and Payment Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Mobile Wallet and Payment Market Report Scope

Mobile Wallet and Payment Market Players Density: Understanding Its Impact on Business Dynamics

The Mobile Wallet and Payment Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Mobile Wallet and Payment Market are:

1. Apple Inc
2. Alphabet Inc
3. AT and T Inc
4. Paypal Holdings Inc
5. Samsung Electronics Co Ltd
6. Mastercard Inc

Disclaimer: The companies listed above are not ranked in any particular order.

Mobile Wallet and Payment Market News and Recent Developments

The global mobile wallet and payment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes critical corporate publications, association data, and databases. A few of the developments in the global mobile wallet and payment market are listed below:

• Apple Inc announced changes to iOS, Safari, and the App Store impacting developers’ apps in the European Union (EU) to comply with the Digital Markets Act (DMA). The changes include more than 600 new APIs, expanded app analytics, functionality for alternative browser engines, and options for processing app payments and distributing iOS apps. (Source: Apple Inc, Press Release, January 2024)

• Mastercard Inc launched a new mobile virtual card app that enables virtual commercial cards to be seamlessly added to digital wallets. The innovative app is designed to offer financial institutions more choices in how they deliver the secure and sustainable contactless payment solutions that companies increasingly expect. (Source: Mastercard Inc, Press Release, April 2024)

Mobile Wallet and Payment Market Report Coverage and Deliverables

The "Mobile Wallet and Payment Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Mobile wallet and payment market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Mobile wallet and payment market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Mobile wallet and payment market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the mobile wallet and payment market
• Detailed company profiles