The mobile payments market has seen a remarkable expansion in the last decade, transforming the way people manage their financial transactions. Thanks to smartphones and digital wallets, consumers are increasingly choosing mobile payment options over traditional methods. This shift has led to rapid growth in the industry, making mobile payments an essential component of the global financial landscape.
In this piece, we will delve into the crucial data and trends that are shaping the mobile payments market, shedding light on its growth patterns, usage behaviors, and the challenges confronting both consumers and businesses. By exploring these insights, companies like GO-Globe can gain a deeper understanding of industry dynamics and assist businesses in optimizing their payment strategies.
Expansion of the Mobile Payments Sector
In recent years, the mobile payments market has witnessed a surge in growth. Reports indicate that global market figures stood at $620 billion in 2016 before reaching $1,080 billion by 2019. This impressive upward trend is expected to persist, with total transaction values in digital payments projected to reach $11.55 trillion by 2024. These figures underscore the growing reliance on mobile payment solutions as consumers prioritize convenience, speed, and security in their financial interactions.
A key factor fueling this expansion is the widespread embrace of smartphones and mobile wallet platforms.
As mobile technology advances, an increasing number of consumers are turning to digital payment options, resulting in a rise in the use of mobile payments market across different industries. This shift is especially noticeable in developing markets, where mobile payment alternatives have gained traction as a viable substitute for traditional banking services.
Insights by Region; Mobile Payment Services Across Different Areas
The availability of mobile payment services varies significantly depending on the region. Sub-Saharan Africa leads with 145 mobile money services, showcasing the region's heavy reliance on mobile tech to connect consumers with financial institutions. South Asia comes next with 45 such services, followed by Latin America and the Caribbean with 30. East Asia and the Pacific offer 28 mobile money services, while the Middle East and North Africa provide 16. In contrast, Europe and Central Asia trail behind with only seven mobile money services.
These regional differences highlight that although the global market for mobile payments market is growing, certain regions have been more successful in embracing and incorporating these technologies into their financial frameworks. This progress is particularly crucial in areas with limited access to traditional banking infrastructure, where mobile payments present a more accessible and inclusive financial alternative.
Encouraging Non-Users to Embrace Mobile Payments
A significant hurdle for the mobile payments market is persuading individuals who do not currently use mobile payment services to give them a try. Studies indicate that a majority of current mobile payment users would be more inclined to use these services if they were offered discounts, various pricing options, or rewards based on their previous purchases. These incentives can play a vital role in motivating nonusers to consider utilizing the mobile payments market as a feasible choice.
Various factors can influence the uptake of mobile payments, such as discounted products or services, exclusive deals, and enhanced user experiences. For example, over half of consumers stated that discounted pricing would likely prompt them to engage with mobile payments, while a similar percentage expressed that special offers would entice them to make the transition. Furthermore, an improved user interface was deemed appealing by more than half of the participants.
Additional motivators include loyalty schemes that recognize repeat transactions. An attractive proposition for almost half of consumers. And the ability to monitor personal expenditure, which nearly half of respondents viewed favorably. The convenience of using the mobile payments market seamlessly across different platforms was also highlighted as significant, with nearly half of users appreciating this ease of transaction.
Obstacles Hindering Mobile Wallet Adoption
Despite witnessing substantial growth in the realm of mobile payments, various barriers continue to impede their widespread acceptance.
Security concerns continue to be a major issue, as 62% of consumers express worries about the safety of their financial information. This worry is particularly common among older generations who may not be as familiar with digital technologies and thus feel more hesitant about using mobile wallets.
Moreover, 40% of consumers mentioned that they don't perceive the necessity for mobile payments since traditional payment methods still fulfill their requirements. Some individuals are reluctant to embrace mobile payments due to compatibility or availability issues, with 15% stating that their preferred stores do not accept mobile wallets.
Another obstacle is the limited availability of mobile payment options in certain regions or businesses. About 9% of consumers highlighted that mobile payments are not widely accessible in their areas, thereby hindering the expansion of the mobile payments market.
Usage trends for different transaction types in mobile payments show variations. Quick-service food and beverage purchases account for 40% of mobile payments, indicating the ease and efficiency of using digital wallets for everyday transactions. Grocery transactions represent 39% of mobile payments, underscoring the increasing popularity of digital wallets in retail settings.
Mobile payments play a significant role in various sectors, with a notable 34% attributed to e-commerce transactions. Many people prefer using their mobile devices for online shopping. Rideshare and public transportation payments make up 33% of mobile transactions, indicating the growing reliance on mobile wallets for commuting and travel purposes. Large retail transactions constitute 31% of mobile payments, while parking payments represent 29%.
Additionally, popular uses of the mobile payments market extend to healthcare services (29%), taxi services (28%), and entertainment (27%). These trends showcase the adaptability of mobile payment solutions in meeting diverse consumer needs.
Looking ahead at future trends in the mobile payments industry, the integration of artificial intelligence (AI) and machine learning into payment systems is expected to play a crucial role. These technologies offer improved security measures, streamlined transactions, and personalized user experiences.
Furthermore, an emerging trend to monitor is the increasing acceptance of cryptocurrency payments within the realm of mobile transactions. With digital currencies gaining broader recognition, more individuals may turn to mobile wallets for managing and utilizing their cryptocurrency holdings.
The advancement mentioned could encourage more people, especially those comfortable with technology, to use mobile payment services. This will be particularly appealing to businesses and consumers eager to keep up with the latest financial technologies.
The ongoing expansion of 5G networks is expected to have a significant impact on the mobile payments industry's growth. Thanks to faster internet speeds and more reliable connections, users will enjoy smooth and secure mobile payment experiences, regardless of where they are.
Infographics
Infographic by GO-Globe ERP Egypt
Global Online Payment market - Estimated Global mobile payment market to hit US$11.55tn in 2024
| Year | Estimated Revenue ( in Billions USD) |
| 2019 | 1,08.0 |
| 2020 | 450 |
| 2021 | 383.3 |
| 2022 | 942.3 |
| 2023 | 1080 |
| 2024 | 1155 |
Estimated number of Mobile money services – 271
| By Region | Estimated Number of Mobile Money Services |
| Sub-Saharan & Africa | 145 |
| South Asia | 45 |
| Latin America & Caribbean | 30 |
| East Asia & Pacific | 28 |
| Middle East & North Africa | 16 |
| Europe & Central Asia | 7 |
79% of Online buyers users would make more mobile payments market if offered discount pricing or coupons based on past purchases
Incentive for non-users to start making mobile payments
| Incentives | %age |
| Discount pricing/coupons | 54% |
| Special offer on reward points | 53% |
| Improve your shopping experience | 53% |
| Able to scan products and present information about the product | 49% |
| Tracks spending habits | 48% |
| Valued customer treatment | 48% |
| Eliminating the requirement for checkout | 47% |
| Receive loyalty offers | 46% |
| Receive notifications for upcoming produce releases at the store | 35% |
Common Barriers to Mobile Wallet Usage
| Barriers | %age |
| Worried about security | 62% |
| Don’t want to pay any fees | 40% |
| Don’t want the store to have mobile wallet info | 26% |
| Not Convenient | 19% |
| No single payment system across merchants | 15% |
| Credit cards have better rewards | 14% |
| Not available at stores of choice | 9% |
Usage Patterns by Transaction Type for Online Transaction
| Usage | %age |
| Quick service Food/Drinks | 40% |
| Grocery Store | 39% |
| Convenience Store | 34% |
| Full-Service Restaurant | 33% |
| Large Retailer | 31% |
| Parking | 29% |
| Household Bills | 29% |
| Taxi Services | 28% |
| Telecom Services | 27% |
In summary
The global mobile payments market has seen remarkable growth, revolutionizing how transactions are carried out by businesses and individuals. As this industry continues to progress, companies like GO-Globe must stay informed about the newest trends and technological advancements to remain competitive.
By staying abreast of key industry statistics and trends, companies can improve their payment strategies, elevate customer experiences, and foster growth in an increasingly digital landscape. From encouraging non-users to addressing security issues, there are abundant opportunities for innovation and expansion in the future of the mobile payments market.
