The growing penetration of smart devices and the introduction of features that can replace physical wallets have imparted an explosive growth to the mobile payment transaction market. The growing preference for smart devices for different activities such as voice calling is fueling the adoption of mobile payment facilities. Different financial institutes are moving towards advanced and fast modes of transactions, compelling the consumers to follow the same. Mobile transactions have emerged as a new source of income which is very lucrative in terms of growth prospects. The ease of use is one of the major factors driving the adoption rate of such solutions. The booming E-commerce industry has substantially surged the adoption of these payment methods, contributing a significant revenue in the market. The Middle East and Africa along with the Asia Pacific are projected to generate lucrative opportunities in the market.
Prominent market players are exploring new opportunities in mobile payments and transactions to expand their customer base. They are focused to develop innovative and attractive user interfaces to attract new customers. Telecom companies are shifting their traditional transaction methods to the new mobile payment systems. Established players profiled in the global market are MoneyBookers, Paypal, Google Wallet, MasterCard, WorldPay, and Visa.
Mobile payments are payment transaction done with the help of a mobile phone. The mobile payments market is worth billions of dollars and was worth US$ 550 billion in the year 2015, and is expected to touch a value of US$ 2849 billion in the year 2020, registering a CAGR of 39.1% during the assessment period. This explosive growth in the mobile payments market is due to the spread and penetration of mobile phones in the populace and their increasing features that are replacing the physical wallet. In addition, people are using their smartphones for various other applications other than voice.
Factors influencing the market
On the go lifestyle trends and increasing foothold of the mobile phones amongst the consumers, making them the preferred product for accessing various other applications other than voice calling is fuelling the growth of the mobile payment systems. Today’s consumers want faster and speedier transactions on the go and this consumer behavior is positively influencing the mobile payment transaction market.
Additionally, profits are declining from traditional sources of income and this is driving the financial institutions to try newer sources of income and profit. Also, the revenues from the traditional voice segments are declining for the telecom companies due to intense competition and consequently rock bottom call rates and they are looking for other lucrative sources of income, and mobile payment transaction market is one such lucrative source of income.
As per the research carried out by Persistence Market Research, mobile consumers need to understand the advantages and convenience that the mobile payment transaction market offers in order to switch over to this mode of payment. Thus, consumers need to be made aware about the advantages that payments through mobile phone offers. Telecom companies, in addition of attracting new consumers are also exploring options to retain their existing consumers and transform them into a loyal customer base.
Booming ecommerce industry is one of the main reasons for the growth of the mobile payment transaction market. Amongst all the areas, merchandise purchases and ticketing is forecasted to contribute a significant share to the mobile payment transaction market.
The SMS segment is slated to witness a CAGR of 24.5% during the forecast period and is estimated to hold a share of 23.8% in the year 2020, at the end of the forecast period.
As far as the technology segment is concerned, the WAP/WEB sub segment is poised to occupy more than 60% of the total market followed by the SMS sub segment. However, it is the NFC communication sub segment is poised to deliver a high growth rate of 46% approximately by 2020.
Asia Pacific and Middle East & Africa are the most lucrative regions for the global mobile payment transaction market. The Asia Pacific market is projected to register a CAGR of 39.5% during the forecast period of 2015-2020. In terms of revenue, the market of Asia Pacific was valued at US$ 146,140.6 Mn in the year 2015 and this is projected to reach a value of US$ 767,867.9 Mn in the year 2020. At the end of the forecast period in 2020, the Asia Pacific region is projected to hold 27% of the market share.
Middle East & Africa is another lucrative region for the global mobile payment transaction market. The Middle East & Africa market is projected to register a CAGR of 34.0% during the forecast period of 2015-2020. In terms of revenue, the market of Middle East & Africa was valued at US$ 183,197.0 Mn in the year 2015 and this is projected to reach a value of US$ 822,858.0 Mn in the year 2020. At the end of the forecast period in 2020, the Middle East & Africa region is projected to hold 28.9% of the market share.
Key market players
Key players of this market include MasterCard, PayPal, GoogleWallet, Braintree and Visa. The ease of operations of the mobile payment transaction market followed by easy user interface is driving the market all over the world for these companies.
This Persistence Market Research report examines the Global mobile payment transaction market for the period 2015- 2020. The primary objective is to offer updates on the advancement in mobile applications that has given rise to a futuristic technology: Mobile Payment, which is significantly transforming the global payment systems. Report also reveals the future business trends in mobile payment systems and their transformative impacts across the value chain.
The report starts with an overview and evolution of the mobile payment system, and the changing consumer behaviour across the globe.
In the next section Persistence Market Research covers up Mobile Payment system market performance in terms of value and volume (number of transactions). This section additionally includes our analysis of key trends, drivers, and restraints from the supply side, demand side and economy which are influencing the market. Impact analysis of key growth drivers and restraints based on weighted average model is included in the report that better equips and arms the client with crystal clear decision making insights.
Mobile payment transaction are done for variety of operations like for merchandise payments, ticketing, money transfers, bill payments and many more. All these applications areas are included in the study and scrutinized on the basis of revenue generated by each of them and future growth prospect. E commerce industry is mainly seen driving the market.
Following section of the report analyses the mobile payment transaction market on the basis of technologies used. The primary technologies covered under the scope of report are Wireless Application Protocol, SMS, Unstructured Supplementary Service Data (USSD) and Near Field Communication (NFC). Study includes in detail analysis of key technologies along with the attractiveness index.
The next section of the report highlights, mobile payment transaction market by regions. It provides a market outlook for 2015-2020 and sets forecast within the context of mobile payment ecosystem, including the technologies to build a completed picture at regional level. This study discusses the regional key trends contributing to the growth of the mobile payment system on worldwide basis well as analyses the degree at which global drivers are influencing mobile payment transactions in each region. For this report key regions assessed are North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan as a separate region, Middle East and North Africa.
All the above sections, by technology, by application or by region evaluates the present scenario and the growth prospect of mobile payment transactions market for the period 2015-2020. The report considers 2015 as a base year and provides data for the trailing 12 months.
In the final section of the report, global mobile payment transaction market’s competitive landscape is included to provide report audiences with a dashboard view of service providers currently dominating the market. This section is primarily designed to provide clients with an objective & detailed comparative assessment of key service providers. Report audiences can gain in depth vendor insights to identify and evaluate key competitors based on in-depth assessment of capabilities and success in the mobile payment marketplace. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the mobile payment transaction market. Key competitors covered are PayPal, GoogleWallet, MasterCard, Visa, LevelUp, Brain Tree, MoneyBokkers, Worlpay, Clinkle and Single Point.
To calculate the mobile payment system market size, the report considers number of online payment transactions conducted, and the fees incurred by respective service providers. The forecast presented has assessed both value and volume across the mobile payment transaction market. When forecasting the mobile payment transaction market, the starting point is sizing the current market, which forms the basis for the forecast how market will develop in future. Given the characteristics of market, we triangulated the outcome of three different analysis on supplier side, demand side and economy. However forecasting the market in terms of various mobile payment technologies, and applications is more of quantifying expectations and identify opportunities rather than rationalizing them after the forecast has been completed.
In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the mobile payment transaction market.
As previously highlighted, the mobile payment transaction market is split into a number of categories. All the mobile payment system segments in terms of technology, regions and application/ purpose are analysed in terms of Basis Point Share to understand individual segments’ relative contributions to market growth. This detailed level of information is important for the identification of various key trends of the mobile payment transactions market.
Also, another key feature of this report is the analysis of all key mobile payment system market’s technologies, regions and application’s revenue forecast in terms of absolute $. This is traditionally overlooked while forecasting the market. However, absolute $ opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the mobile payment transactions market.
Furthermore, to understand key growth segments in terms of growth & adoption of mobile payment’s technology and regions, Persistence Market Research developed the mobile payment transaction’s “Market Attractiveness Index”. The resulting index should help providers identify real market opportunities.