Global Mobile Wallet Market 2022-2028

Global Mobile Wallet Market 2022-2028

Global Mobile Wallet Market Size, Share, & Analysis by Type (Remote and Proximity), and by Application (Healthcare, Telecommunication, Media and Entertainment, Retail And E-Commerce, Hospitality and Transportation, and Others) Forecast Period (2022-2028)

Market Overview

Global mobile wallet market by transaction is estimated to grow at a significant CAGR of 13.0% during the forecast period (2022-2028). A mobile wallet is a promising payment service in the commercial and financial industry, providing a wide array of services including consumer financial services, crypto and digital currencies, bill pay, shopping offers and cashbacks, among others. The usage of mobile wallets has surged around the globe owing digitalization, technological advancement, and inclination of consumer preferences towards mobile wallets. Contactless payment is effectively adopted in sectors dealing with many financial transactions such as supermarkets, shopping centers, transportation, hospitality, entertainment, and other sectors. Further, the COVID-19 pandemic has strengthened the payment preferences such as reduced cash usage, the shift from in-store to online commerce, and the adoption of instant payment options.

The global mobile wallet market by transaction value was valued at $5.9 trillion in 2021 and is anticipated to reach $13.8 trillion in 2028. The primary factors driving the mobile wallet market includes- rising growth of the e-commerce industry, rapid adoption of smartphones, and the presence of a massive unbanked population around the globe. Mobile wallets are innovative, advanced, convenient digital payment solutions that eases cashless transactions along with various benefits such as reward points, vouchers, and cashbacks, among others. Therefore, key market players are developing innovative mobile wallets with various offers to cater to the rising demand. For instance, in October 2021, Venmo (PayPal) launched its first reward program named Venmo Rewards. It allows users to earn automatic cashback when paid through Venmo cards at selected retailers. The cashback earned is directly deposited into the Venmo account of the user.

Industry Segment Outlook

The global mobile wallet market by transaction value was valued at $5.9 trillion in 2021 and is anticipated to reach $13.8 trillion in 2028. The primary factors driving the mobile wallet market includes- rising growth of the e-commerce industry, rapid adoption of smartphones, and the presence of a massive unbanked population around the globe. Mobile wallets are innovative, advanced, convenient digital payment solutions that eases cashless transactions along with various benefits such as reward points, vouchers, and cashbacks, among others. Therefore, key market players are developing innovative mobile wallets with various offers to cater to the rising demand. For instance, in October 2021, Venmo (PayPal) launched its first reward program named Venmo Rewards. It allows users to earn automatic cashback when paid through Venmo cards at selected retailers. The cashback earned is directly deposited into the Venmo account of the user.

Industry Segment Outlook

The global mobile wallet market is segmented based on type and application. Based on the type, the market is segmented into remote and proximity. The remote mobile wallet segment held the highest market share of 81.3% accounting for $4.8 trillion in transaction value in 2021 and is estimated to reach $11.3 trillion in 2028, growing at the highest CAGR of 13.1% during the forecast period. The remote wallet is widely utilized in major economies such as China and India. The proximity mobile wallet segment held a market share of 18.7% accounted for a $1.1 trillion transaction value in 2021 and is estimated to reach $2.5 trillion in 2028, growing at a CAGR of 12.6% during the forecast period. The primary factor supporting the growth include the rising adoption of non-contact payment solutions coupled with the integration of Near-Field Communication (NFC) chips into smart devices across the globe. Developed nations such as the US and Europe are primarily using card-based mobile wallets. The card-centric ecosystem in these economies has enabled the proximity segment growth in these regions.

Based on application, the mobile wallet market is segmented into healthcare, telecommunication, media and entertainment, retail and e-commerce, hospitality and transportation, and others. The global mobile wallet in the retail and e-commerce industry held the highest market share of 40.2% accounting for a $2.4 trillion transaction value in 2021 and is estimated to reach $6.1 trillion in 2028, growing at the highest CAGR of 14.6% during the forecast period. The major factors contributing to the growth of the market include the rising inclination towards e-commerce platforms and growing online shopping. According to the Census Bureau’s Annual Retail Trade Survey (ARTS), e-commerce sales increased by $244.2 billion or 43% in 2021, the first year of the pandemic, rising from $571.2 billion in 2021 to $815.4 billion in 2021.

Geographically, the report covers the analysis of four major regions including North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and the Rest of Europe), Asia-Pacific (China, Japan, India, and the Rest of Asia-Pacific), and the Rest of the World. Asia-Pacific held the highest market share of 80.2% valued at $4.7 trillion in 2021 and is estimated to reach $11.3 trillion in 2028, growing at the highest CAGR of 13.3% during the forecast period. China represents 85.2% of the market as most of the population is using mobile wallets, such as WeChat and AliPay. The factor contributing to the growth of the mobile wallet market across the region includes the rapidly growing mobile wallet users. WeChat and Alipay wallet users increased to nearly 1 billion in 2021. In addition, China and India are emerging nations that are rapidly witnessing internet and smartphone penetration. For instance, according to the India Department of Telecommunications, the mobile connection per 100 inhabitants was 47.04 in 2021 which increased to 52.54 million in 2021. In addition, the government of these countries is also pushing consumers and retailers to migrate to the cashless digital platform by introducing payment gateways and other schemes, which is another factor accelerating regional growth. For instance, in August 2021, the Prime Minister of India unveiled a new payment solution e-RUPI. Thus e-RUPI is a one-time contactless, cashless voucher-based mode of payment that assists users to redeem the voucher without a card, digital payments app, or internet banking access. Some of the key players operating in the global mobile wallet market include WeChat (Tencent Holdings Ltd.), Apple, Inc., Google LLC, PayPal Holdings, Inc., Amazon Pay, Alipay (China) Internet Technology Co. Ltd., and others. To survive in the market, these players adopt different marketing strategies such as mergers and acquisitions, launches, and geographical expansion.