The global mobile payment technologies market will be worth about $1 773.17 billion by the end of 2024 — a market progression of 20.5% at a compound annual growth rate, according to researchers.
According to Transparency Market Research firm, the global mobile payment technologies (MPT) market was worth $338.72 billion in 2015. Yet, the market has huge growth potential with two main drivers, said the firm.
Proximity mobile payment technologies are a primary driver of MPT. The global MPT market is segmented into proximity payment, which includes near field communication (NFC) and QR code payment and remote payment. The latter includes options such as SMS-based, USSD/STK, direct operator billing (credit or debit-card based), and digital wallet.
“Of these, the proximity mobile payment technologies will be the preferred choice of consumers,” said Transparency Market Research authors.
This segment is slated to rise at a compound growth rate of 21.9% between 2016 and 2024. Analysts attribute this growth to the growing demand for NFC payments in the near future, the firm added.
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In terms of geography, the global MPT market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.
A second major MPT driver is Asia. By revenue, Asia Pacific currently leads the pack, and is poised to acquire a share of 42.5% in the global market by the end of 2024. The predictions are in the wake of countries, such as China and India, relentlessly promoting a cashless economy. This is expected to boost the regional market significantly.
However, factors likely to hamper growth are a lack of consumer interest in adopting newer technologies. The lack of awareness amongst consumers surrounding mobile payment services and the features of simple payments that mobile phones can offer are a major concern for service providers.
“Furthermore, limited usage of mobile phones in rural areas of developing countries and emerging economies is also projected to have a negative impact on the global market in the near future,” said TMR report authors.
MasterCard, Visa, and American Express are the current major players in MPT. The American firms are expected to dominate the global market with their geographical reach and increased product offerings via mergers and acquisitions.
TMR advised that companies also focus on developing cloud-based payment technologies that are secure and safe, “to lure in a bigger user base over the next few years,” it added.