Mobile Payment Market - By Technology (Near Field Communication (NFC), Direct Mobile Billing, Mobile Web Payment, SMS, Interactive Voice Response System, Mobile App, Others), By Type (B2B, B2C, B2G), By Location, By End Use, Forecast 2023 - 2032

Mobile Payment Market - By Technology (Near Field Communication (NFC), Direct Mobile Billing, Mobile Web Payment, SMS, Interactive Voice Response System, Mobile App, Others), By Type (B2B, B2C, B2G), By Location, By End Use, Forecast 2023 - 2032

Mobile payment market size is slated to expand at over 14.5% CAGR from 2023 to 2032 driven by the widespread adoption of smartphone and the convenience of cashless transactions.

The pandemic has accelerated the shift towards contactless payment methods, providing momentum for extensive use of mobile payments. The continuous development of secure and user-friendly mobile wallet applications has also enhanced the overall consumer transaction experience. For instance, in September 2023, API banking company Cashfree Payments launched the UPI Plug-in for allowing mobile-first businesses to seamlessly collect UPI payments from customers within their application whilst eliminating the need for customers to exit the platform.

Additionally, the robust expansion of e-commerce and the emerging trend of mobile payments for online shopping are accelerating the adoption of mobile payments. The rising collaborations between mobile payment providers and businesses coupled with the advancements in near field communication (NFC) technology to offer seamless and efficient payment solutions to users will drive the industry growth.

The mobile payment market is segregated into technology, type, location, end use, and region.

Based on location, the industry value from the proximity payment segment is expected to depict substantial CAGR during 2023-2032, driven by the increasing consumer preference for contactless transactions, especially in physical retail locations. The convenience, speed, and heightened focus on hygiene will further drive the adoption of proximity-based transactions as preferred mobile payment solutions.

The near field communication (NFC) technology segment is estimated to accumulate substantial mobile payment market share by 2032. The growth can be ascribed to the strong ability of NFC to facilitate quick and secure contactless transactions. The improved user experience, widespread smartphone adoption, and the convenience of tapping for payments will also contribute to the segment growth.

Regionally, the Europe mobile payment market is projected to expand at rapid pace during 2023-2032. This is due to the increasing smartphone penetration, strong focus on digital payment infrastructure, and the shifting consumer preference towards contactless and mobile-based transactions. The presence of supportive regulatory frameworks and collaborations between financial institutions and technology providers across the region will also boost the market development.