The global mobile wallet market is forecasted to expand at a stupendous CAGR of 22% from 2023 to 2033, according to the latest data provided by Fact.MR, is a provider of market research and competitive intelligence. As such, global demand for mobile wallets is estimated to reach a market value of US$ 1965 billion by the end of 2033. Increasing adoption of intelligent devices and growing penetration of the Internet are key factors projected to bolster the demand for mobile wallets.
Increasing government initiatives for the development of smart cities across various countries are predicted to drive the demand for mobile wallets for online payments. The emergence of numerous e-Commerce platforms along with rapid urbanization is also expected to contribute to market opportunities owing to the increasing adoption of mobile payments.
A mobile wallet is also a virtual wallet that can be operated easily through a smartphone to augment cost-effectiveness and operational efficiency by reducing processing fees. Easy payments are ensured by these wallets with the security of users’ data. Mobile wallets can easily complete different transactions, including money transfers, travel/movie bookings, bill payments, and mobile recharge.
- PayPal expanded its services in numerous countries while providing facilities to customers to link their mobile wallets to their respective bank accounts and easily carry a balance.
Key Takeaways from Market Study
- The global mobile wallet market stands at a valuation of US$ 269 billion in 2023.
- Worldwide demand for mobile wallets is estimated to surge at a CAGR of 22% from 2023 to 2033.
- The global industry is forecasted to reach US$ 1965 billion by the end of 2033.
- Asia Pacific held around 30% share of the global market in the year 2022.
- Sales of proximity mobile wallets are predicted to rise at a high-value CAGR of 25% from 2023 to 2033.
- The retail & e-Commerce segment held 31% of the global revenue share in 2022.
“Different benefits of mobile wallets, including simple to load money, easy accessibility, convenience in operation, and quick fund transfer, are projected to bolster their demand over the decade,” says a Fact.MR analyst.
Cashback Services by Mobile Wallet Companies
Mobile wallet companies offer customers various provocations through cashback and discounts to attract them. Amazon Pay offers cashback to trade activities conducted through this platform. These kinds of encouragements and offers are estimated to fast breed the requirements for mobile wallets.
Banking and other payment application players are pushed by the government to encourage cashless payments through mobile wallets at merchant channels. These initiatives by the government to promote cashless and digital programs are expected to improve cybersecurity globally, stimulating the adoption of different mobile wallets.
Growing Concerns about Data Breach and Data Security
Recently, there has been a noticeable increase in incidences related to data breaches and security. Information or data are stolen from a system without any knowledge of the respective user. Thus, these types of cases are anticipated to adversely impact demand for mobile payments around the world.
Industry players are involved in mergers, acquisitions, etc., to offer more effective services and expand their footprints globally.
PayPal Holdings, Inc., in September 2021, announced its acquisition of Paidy. The motive of this acquisition is to increase the capabilities, distribution, and relevance of PayPal in the Japanese domestic payments market. Paidy would continue to maintain its support, operate its business, and brand an extensive variety of mobile wallets.