Growing mobile phone ownership and proliferation of internet promise a fundamental transformation in the global payments landscape. Mobile payments, although still in their infancy, will account for a significant percentage of all transactions.
Technological innovation has already transformed the manner in which we communicate with our loved ones and acquaintances. Consumer appetite for on-demand content has made the TV industry to ponder upon the future, whereas popularity of mobile gaming has eaten into the console market.
Mobile payments are gaining traction not only in the developed world, but also in emerging markets. The success of M-Pesa in Kenya is a case study in itself, with replicating models now being tried in other emerging nations.
Millennials are at the forefront of adoption of mobile payments. From a consumer persepective, they are all too familiar with social media websites — platforms where mobile payments are expected to gain traction in the future. From a business perspective, millennials who are at climbing the corporate hierarchy are bringing new ideas and new ways of doing business to their organisations. As we move into a new era of Silicon Valley “startup” enterprise, old tools and methodologies are being increasingly replaced by new technology-oriented tools. Mobile payments represent the new era of transactions, which is consumer-driven, with lesser governmental control and regulation.
State of the Market
The mobile payments market is expected to reach USD 549 billion in 2015, up from USD 392 billion in 2014. Between 2014 and 2020, the market will gain an astonishing USD 2300 billion, amplifying at a compound annual growth rate (CAGR) of nearly 39%. 61 million new users are expected to be added between 2014 and 2015, and by 2020, the total user base will reach nearly three quarters to a billion.
North America
North America remains one of the most lucrative markets for mobile payments. High smartphone ownership, coupled with robust internet coverage are key factors facilitating mobile payments. In 2014, North America held a share of nearly 23% of the global mobile payments market. In the next five years, more businesses are expected to leverage the power of mobile, giving a fillip to the mobile payment market in the region.
North American mobile payment market is dominated by the US — home to companies that are expected to play a pivotal role in the widespread adoption of mobile transactions. PayPal is already scaling up efforts to shift more consumers to mobile, whereas Facebook and Twitter, are expected to join the bandwagon. The number of users in North America is expected to reach 76 million by the end of this year.
Asia Pacific
Without a doubt, the story of mobile payments in Asia Pacific is heavily influenced by adoption in China and India. While China seems to be winning the race to the top, India remains a highly lucrative market, given its burgeoning middle class and spurt in the digital businesses.
China is on course to dethrone the US to become the world’s largest economy. As urbanisation trend sweeps China, mobile ownership and internet use is gaining traction, creating the necessary infrastructure need to facilitate mobile payments.
India’s growth story has been remarkable to say the least, and as one of the key players in the multipolar economic world, the country promises a plethora of growth opportunities. Smartphone ownership is increasing at a robust pace in the country and providing internet access to people in rural areas has become a key government project. Digital India — Indian government’s ambitious plan has garnered a lot of euphoria, with Silicon Valley leaders, including Mark Zuckerberg, Satya Nadella, and Sundar Pichai pledging their support. As more Indians gain access to internet on the mobile, the scale of transactions is expected to witness an upswing.
On the basis of technology, SMS dominates the mobile payments market currently. However, in the next five years, WAP/WEB based payments will gain traction, along with spurt in NFC enabled payments. The share of NFC enabled mobile payments is expected to reach 8.3% by 2020, up from 5.1% in 2014.
Related Market Research Report: Mobile Payment Transaction Market: Global Industry Analysis and Opportunity Assessment, 2014 - 2020
The High-Voltage Isolation and Leakage Sensor Components Market is segmented by Product Type (Insulation Monitors, Leakage Sensors, Residual Monitors, Fault Locators), Voltage Class (400 V, 800 V, Above 800 V), Vehicle Type (BEV, PHEV, FCEV, E-trucks), Mounting Point (Battery Packs, HV Bus, OBC Units, DC Chargers, Junction Boxes), Output Interface (CAN, Analog, Digital, LIN), Sales Channel (OEM Line-fit, EVSE OEM, Aftermarket), End Use (Passenger Cars, Light Vans, Trucks, Buses, Charging Sites, Off-highway), and Region. Forecast for 2026 to 2036.
The haptic feedback switch and button platforms market is segmented by Technology Type (Capacitive Haptics, Piezo Haptics, Electromagnetic Haptics, Force Sensing, Optical Sensing), Actuation (Piezo Actuators, LRA Actuators, Eccentric Motors, Solenoid Units, Hybrid Actuators), Interface Format (Touch Buttons, Sliders, Rotary Knobs, Touch Pads, Steering Keys, Hidden Switches), Mounting Zone (Center Stack, Steering Wheel, Door Trim, Roof Console, Seat Controls, Console Sidewall, Dashboard Fascia), Surface Material (Glass Surfaces, Polymer Surfaces, Decor Film, Leather Surfaces, Fabric Surfaces, Composite Surfaces), Vehicle Class (Passenger Cars, Premium Cars, Mid-range Cars, Entry Cars, Light Trucks, Commercial Vehicles, Electric Vehicles), Sales Channel (OEM Line-fit, Tier Modules, Aftermarket Kits, Retrofit Packs), and Region. Forecast for 2026 to 2036.
This report covers the permission-aware AI repository gateway market through analysis of market size, revenue forecast, competitive landscape, demand outlook, growth drivers, restraints, repository access controls, connector governance, and strategic growth opportunities.
This report covers the governed enterprise architecture scenario sandbox market through analysis of market size, revenue forecast, competitive landscape, demand outlook, growth drivers, restraints, repository trends, governance controls, and strategic growth opportunities.
This report covers the customer identity graph drift monitoring market through analysis of market size, revenue forecast, competitive landscape, demand outlook, growth drivers, restraints, data-quality controls, privacy-safe identity operations, and strategic growth opportunities.
