Mobile Wallet Market Size By Type (Open, Closed, Semi-closed), By Ownership (Telecom Operators, Banks, Tech Companies, Device Manufacturers), By Technology (Optical/QR Code, Near Field Communication (NFC), Text-based, Digital Only), COVID-19 Impact Analys

Mobile Wallet Market Size By Type (Open, Closed, Semi-closed), By Ownership (Telecom Operators, Banks, Tech Companies, Device Manufacturers), By Technology (Optical/QR Code, Near Field Communication (NFC), Text-based, Digital Only), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022-2030

The global mobile wallet market is anticipated to observe considerable growth through 2030, driven by the rising customer preference for digital payment methods, especially in wake of the COVID-19 pandemic.

Based on a Razorpay report, e-commerce transactions in India surged by 71% in December 2020. Shoppers are increasingly relying on mobile wallet apps due to ease of use and convenience. They also can offer retailers the opportunity to gain improved access to customers in real time.

With an expanding consumer population becoming more accepting of digital payment methods, mobile wallets are emerging as a mainstream payment concept, which may contribute to industry development over the forecast period.

The mobile wallet industry is segregated in terms of type, ownership, technology, and region.

In terms of type, the market is divided into the closed wallet, open wallet, and semi-closed wallet segments. The open wallets segment is expected to hold a commendable market share, given its ability to allow customers to use their funds for making payments or withdraw the funds in cash.

The popularity of online payment apps that offer open wallet services has increased tremendously. Based on data from Cornerstone, PayPal has been installed on more than 65% of smartphones, stimulating open mobile wallet industry share.

With regards to ownership, the market is bifurcated into device manufacturers, tech companies, banks and telecom operators. The tech companies segment accounted for over 66% of the industry share in 2021.

These firms are increasingly making investments in mobile money wallet technology to deliver a user-friendly and secure way to conduct financial transactions for customers. Due to the high penetration of Internet-enabled mobile devices, consumers are rapidly shifting their interest toward virtual payment options, which may propel segmental progress.

Based on technology, the industry is divided into Optical/QR code, near field communication (NFC), text-based, and digital-only. Among these, the digital-only segment was valued at over USD 25 billion in 2021.

Remote mobile transactions also reached more than USD 106 billion in 2019, which is less than 2% of retail sales globally. In the retail industry, mobile wallets have been utilized at a staggering rate, creating a favorable growth environment for digital-only wallet developers.

Regionally, Latin America is projected to be valued at around USD 25 billion by 2030, given the rapid digital transformation of the banking sector.

Banking service providers are emphasizing the reduction of operational costs and the acquisition of more customers who are facing issues regarding the high costs of traditional banking.

Furthermore, nearly 64% of the banks across LATAM are testing or implementing chatbots, cloud computing, and big data. These factors are expected to proliferate the development of cloud-based mobile payment systems and subsequently expedite regional mobile wallet market development.