Mobile Payment Market Size, Share, Forecast, & Trends Analysis by Method (Mobile Wallets, QR Code, Mobile Commerce, Mobile Point of Sale), Application (B2B, B2C, B2G), Location (Remote, Proximity), End-user (BFSI, Retail & E-commerce, Healthcare), and Geography - Global Forecast to 2031

Mobile Payment Market Size & Forecast

The Mobile Payment Market is projected to reach $3,929 billion by 2031, at a CAGR of 27.2% from 2024–2031. The growth of the mobile payment market is driven by the increasing digitalization of payment services via smartphones and expanding government initiatives to promote cashless transactions. Furthermore, the rising integration of near-field communication (NFC) in mobile payment for secure and contactless transactions is expected to generate growth opportunities for the players operating in this market.

Mobile Payment Market Growth Drivers

Growing Digitalization of Payment Service Through Smartphones

In recent years, the surge in digital payment services has been driven by the rapid adoption of smartphones and improved internet access. This has led to a notable rise in the use of mobile payment methods, including mobile wallets, UPI, QR codes, and mobile point-of-sale systems. As customer demand for streamlined and convenient payment options grows, more businesses are increasingly integrating mobile payment services into their in-store operations.

Moreover, with the growing digitalization of payment services through mobile devices, various companies are offering mobile payment solutions that help reduce checkout and wait times for both customers and merchants. As the advantages of mobile payment solutions become more evident, an increasing number of companies are launching these services to facilitate the purchase and sale of goods and services.

For example, in November 2022, Honeywell International Inc. (U.S.) introduced Honeywell Smart Pay, a contactless software payment solution that transforms the company’s mobile computers into secure and compliant payment terminals. This solution allows for the acceptance of contactless mobile payment from any location where a business sells or delivers goods and services. These advancements in digital payment services through mobile devices are expected to drive increased demand for mobile payment throughout the forecast period.

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Mobile Payment Market Opportunity

Rising Integration Of Near Field Communication (NFC) in Mobile Payment for Secure and Contactless Transactions

Near Field Communication (NFC) is a wireless technology that allows devices to communicate with each other over short distances. NFC payment are contactless and secure transactions that use NFC-enabled devices, such as smartphones or smartwatches, to make secure transactions at point-of-sale terminals. Additionally, NFC payment are ideal for businesses of all sizes as they provide a seamless and efficient payment processing option. Today’s smartphones are equipped with NFC technology, enabling users to make payment through various options such as payment apps, digital wallets, and UPI. Consequently, the growing adoption of NFC payment in businesses offers customers a smooth and hassle-free payment experience, allowing them to complete transactions quickly and securely using their mobile devices.

The growing integration of NFC in mobile payment encourages companies to focus on NFC-based mobile payment solutions to support contactless and secure transactions. For instance, in September 2022, ProvidusBank (Nigeria), Mastercard International Incorporated (U.S.), Interswitch Group (Nigeria), and Thales Group (France) introduced a new Tap-to-Pay service. The service allows cardholders to make fast, secure, and convenient in-store payment by tapping their NFC-enabled smart device at any contactless-enabled payment terminal. Such collaborative efforts of companies to provide the benefits of secure and contactless payment to consumers contribute to the adoption of NFC technology.

Mobile Payment Market Trend

Growing Adoption of Artificial Intelligence-based Applications in Payment

Recently, the adoption of AI in mobile payment has increased to ensure secure payment and improve customer experience. The increasing use of AI-based applications in payment enhances transparency and accountability, boosting customer confidence in using mobile payment. Moreover, the growing integration of AI in mobile payment uses advanced algorithms that enable to identify and mitigate fraud while making payment. This advantage drives greater demand for mobile payment across various sectors, including financial institutions, banks, retail and e-commerce, and healthcare.

Additionally, through machine learning and predictive analytics, these AI systems scrutinize extensive datasets to pinpoint fraud in real time, adapting to new fraudulent patterns over time in mobile payment. Thus, several companies are providing AI-based mobile payment applications that help to analyze data such as customer preferences and purchase history to provide personalized payment options and recommendations. This can improve the user experience and increase customer loyalty. Such increasing use of AI technology in mobile payment can enhance payment security and reduce the possibilities of cyberattacks.

Mobile Payment Market Analysis: Key Findings

By Method: The Mobile Wallets Segment to Dominate the Mobile Payment Market, in 2024

Based on method, the global mobile payment market is segmented into mobile wallets, mobile point of sale, mobile commerce, quick response (QR) code payment, SMS payment, and other methods. In 2024, the mobile wallets segment is expected to account for the largest share of over 49.0% of the mobile payment market. The segment's large market share is attributed to the growing adoption of mobile wallets due to their advanced encryption techniques to safeguard user data during transactions, increasing use of mobile wallets for quick and hassle-free payment with a simple tap or scan, growing usage of mobile wallets in transportation for ticketing and parking of vehicles. Additionally, the growing integration of tokenization in mobile wallets enhances payment security and protects sensitive account data.

However, the quick response (QR) code payment segment is expected to register the highest CAGR during the forecast period. The growth of this segment is attributed to the increasing government focus on cashless payment, the growing adoption of QR code payment in retail & E-commerce, hospitality, and healthcare industries, and the increasing use of QR code payment, which offer high security through encryption and tokenization to protect customer information.

By Application: The Business-to-Business Segment to Dominate the Mobile Payment Market, in 2024

Based on application, the global mobile payment market is segmented into business-to-business, business-to-consumer, business-to-government, and other applications. In 2024, the business-to-business segment is expected to account for the largest share of over 47.0% of the mobile payment market. The segment's large market share is attributed to the growing adoption of mobile payment in B2B for faster transaction processing as compared to traditional methods like checks or wire transfers and the increasing use of B2B mobile payment platforms to accommodate growing transaction volumes and expanding business operations. Additionally, mobile payment allow businesses to initiate and manage transactions directly from their mobile devices, regardless of location or time zone.

However, the business-to-consumer segment is expected to register the highest CAGR during the forecast period. The growth of this segment is driven by the increasing adoption of B2C mobile payment, which provide a convenient way for consumers to make purchases using their smartphones or mobile devices. Additionally, the rise in B2C mobile payment platforms helps generate valuable data and analytics on consumer behavior, purchasing patterns, and preferences. Furthermore, the growing use of mobile wallets is helping businesses reduce costs associated with payment processing.

By Location: The Remote Segment to Dominate the Mobile Payment Market, in 2024

Based on location, the global mobile payment market is segmented into remote and proximity. In 2024, the remote segment is expected to account for the larger share of over 61.0% of the global mobile payment market. The segment's large market share is attributed to the growing use of mobile payment via remote locations due to the availability of mobile networks to conduct transactions from anywhere with cellular networks and the increasing use of remote mobile payment for businesses operating in remote areas to accept digital payment from customers.

Also, the remote segment is expected to register a higher CAGR during the forecast period.

By End User: The Retail & E-commerce Segment to Dominate the Mobile Payment Market, in 2024

Based on end-user, the global mobile payment market is segmented into BFSI, retail & E-commerce, healthcare, travel & hospitality, transportation, IT & telecom, media & entertainment, energy & utilities, and other end-users. In 2024, the retail & E-commerce segment is expected to account for the largest share of over 24.0% of the global mobile payment market. The segment's significant market share is attributed to the rising adoption of mobile wallets in retail environments, which facilitate quick and hassle-free payment through a simple tap or scan. Additionally, the growing use of mobile payment helps streamline the checkout process, enhancing customer satisfaction and boosting loyalty. Moreover, the retail & E-commerce business is increasingly adopting mobile payment to facilitate cross-country transactions by simplifying currency exchange and adhering to local payment preferences.

However, the BFSI segment is anticipated to register the highest CAGR during the forecast period. This growth is driven by the increasing adoption of mobile payment by banks and financial institutions, which helps reduce costs related to physical infrastructure, such as branches, ATMs, and cash handling. Additionally, the rising use of mobile payment generates substantial transaction data, allowing for a deeper understanding of customer behavior, preferences, and spending patterns.

Additionally, the advancement of technologies such as encryption and authentication in mobile payment enhances security, reduces risks associated with cash transactions, and prevents unauthorized access to accounts, thereby increasing the demand for mobile payment in the BFSI sector.

Geographical Analysis

Asia-Pacific Region to Dominate the Mobile Payment Market in 2024

In 2024, Asia-Pacific is expected to account for the largest share of over 38.0% of the mobile payment market. Asia-Pacific’s significant market share can be attributed to the growing adoption of mobile payment in the region due to the rise in online shopping and E-commerce platforms among consumers; the increasing government initiative in countries such as India, China, and Japan for cashless payment in businesses; and the rising use of mobile payment in BFSI sector in the region for secure and authorized transactions. Additionally, the increasing penetration of smartphones and widespread internet usage has accelerated the adoption of mobile payment in the region.

Also, Asia-Pacific is expected to register the highest CAGR of above 28.5% during the forecast period.

Mobile Payment Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the mobile payment market are MoneyGram Payment Systems, Inc. (U.S.), Apple Inc. (U.S.), Google LLC (A Subsidiary of Alphabet Inc.) (U.S.), Mastercard Inc. (U.S.), Alibaba Group Holding Limited (China), PayPal Holdings, Inc. (U.S.), Samsung Electronics Co., Ltd. (South Korea), Visa Inc. (U.S.), Tencent Holdings Ltd (China), Amazon.com, Inc. (U.S.), American Express Company (U.S.), M-Pesa (Vodafone Group Plc) (U.K.), One MobiKwik Systems Limited (India), Orange S.A. (France), and Oxigen Services (India) Pvt. Ltd (India).

Mobile Payment Industry Overview: Latest Developments from Key Industry Players

• In April 2024, OneShield (U.S.) partnered with One Inc (U.S.) to enhance digital payment solution offering. One Inc's digital payment platform provides insurers with a secure, seamless, and customizable payment process across multiple channels, including web, mobile, and call centers.

• In April 2024, Mastercard Inc (U.S.) recently launched a mobile virtual card app designed to simplify travel and business expenses. The app utilizes Mastercard’s virtual card and tokenization platforms, providing enhanced data insights and robust spend controls within an intuitive interface.

• In September 2022, Mobiblanc Finance (Morocco) and Skaleet (France) launched of a new mobile payment project with the National Bank of Mauritania (BNM). The e-Wallet ecosystem provided by BNM not only ensures security but also aims to facilitate access to basic financial services for unbanked populations.

Mobile Payment Market Research Summary

Key questions answered in the mobile payment market report: