Global Market Insights, Inc. has recently added a new report on the mobile wallet market which estimates the market valuation for mobile wallets will cross US$ 350 billion by 2026. The influx of multinational tech giants in the fintech sector investing heavily in digital payment technologies will fuel the CAC market growth. Changing customer preferences are encouraging tech players to launch mobile wallet product offerings.
The bank-owned mobile wallet segment is anticipated to grow at a CAGR of over 14% during the forecast timeline. Banks and financial establishments are embracing mobile wallets to improve their customer relationship, customer retention, and position their payment cards as top wallets. The rapidly changing financial landscape of the banking industry has also forced major banks to adopt various mobile wallets to optimize their customer experience.
The semi-closed segment held a major portion in the mobile wallet landscape with over 60% of the market share. The influx of various technology players in the Fintech landscape is driving the growth of semi-closed mobile wallets. The changing customer preference is encouraging tech players to launch semi-closed mobile wallet product offerings. Over a third of the millennials (population aged between 16 to 34) believe that they will be able to live a bank-free existence in the future, which is expected to bring mobile wallet technologies into the forefront.
The increasing adoption of smartphones, tablets, and other smart devices among individuals to operate bank accounts is promoting the adoption of mobile wallets. The recent shift from online banking platforms to mobile banking apps is promoting the adoption of mobile wallets across countries. Supportive government initiatives and policies across the globe are also driving the mobile wallet transaction volume. Mobile banking is approaching its saturation point in the developed nations with over 83% penetration, which is expected to augment the use of mobile wallets.
The demand for digital-only mobile wallet solutions is expected to increase significantly, which is driven majorly by the retail segment. Digital-only mobile wallets have been adopted at a staggering rate in the retail industry. The increasing acceptance & adoption of mobile wallets is encouraging companies to invest in the development of digital-only mobile wallets to facilitate transactions from remote locations. Technological advancements have allowed mobile wallet providers to integrate biometric technology into digital-only mobile wallets.
Europe is expected to witness an exponential growth rate of over 15% from 2020 to 2026. This can be attributed to the rise of various competing mobile wallets operated by various international and domestic entities across Europe. In 2019, the region had over 50 mobile wallets, out of which 26 were operated by banks. Most of these wallets were launched through the collaborative effort between banks and technology players. Non-banking establishments introduced over 23 mobile wallets.
Browse key industry insights spread across 240 pages with 381market data tables and 32 figures & charts from the report, “Mobile Wallet Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Companies operating in the market are focusing on the development of advanced mobile wallet solutions. Mobile wallet vendors are continuously developing their mobile wallet platforms with the integration of advanced technologies. For instance, in October 2019, Google introduced the fingerprint scan and facial recognition features in its Google Pay wallet. The biometrics will run in conjunction with password/PIN and add an extra layer of security in mobile wallet transactions.
Some major findings of the mobile wallet market report include:
- The increasing penetration of smartphones is driving the mobile wallet market growth. Over the past decade, a rapid surge in the adoption of smart devices has been witnessed.
- Digital disruption and generational shifts are causing fundamental transformations in customer behavior, thereby influencing customer expectations from banking solutions.
- Asia-Pacific dominated the mobile wallet landscape with over 50% share in the total market in 2019. The market is driven by a rising number of e-commerce platforms, including Flipkart and Alibaba.
- Major players operating in the mobile wallet market are Apple Inc., Google LLC, PayPal Holdings, Inc., and Mastercard Inc., among others.
- Industry participants are focusing on the development of advanced mobile wallet solutions to gain a competitive advantage over their competitors.