Global mobile wallet industry will increase by 22.5% (approx.) during from 2021 to 2026. The growing use of technology in financial transactions and growth in E-commerce platforms will upsurge. The mobile wallet market during the forecast period.
There are numerous advantages in using mobile wallet solutions such as the convenience of making payments, enhanced security while maintaining all card information in one location.
In addition, mobile wallets and mobile banking have taken on a high profile over the past several years because of the increased internet penetration into various industries worldwide.
With the introduction of mobile banking transactions, the banking system in developed areas such as North America and Europe has seen a significant upheaval. Banks and other financial institutions now present their own mobile money solution to improve the customer experience and enhance their client base. The digital banking users’ large scoop are millennials.
Furthermore, digital payments in India are flourishing, with contactless transactions growing at a compound annual growth rate of 12.7 percent. Likewise, China’s mobile wallets are up 22%, with total transaction volume reaching $41.1 trillion in 2018. The growing adoption of contactless transactions is likely to result in demand for the mobile wallet market.
In today’s article, we will enumerate the mobile wallet trends that will foster the size of the mobile wallet market.
So, let’s start !
1. Open mobile wallets will experience an increase in demand in Europe
An open mobile wallet is a virtual wallet that you can use to make payments. Withdraw money and carry out several other transactions. The EU market for mobile wallets is expected to grow at $60 billion by the end of 2026.
Open mobile wallet solutions will be in high demand among the regional population. Indeed, this segment will grow by a CAGR of 15% over this period.
Europe is popular for having one of the world’s leading digital banking infrastructures. The region’s banks use advanced technology to make day-to-day banking convenient for customers.
The traditional banking system faces severe competition from new FinTech start-ups. This has led to the introduction of open mobile wallet app development and other modern banking technologies to build customer loyalty and scale-up.
What’s more, the European market has seen several strategic tie-ups among key players to launch new products with enhanced features and win a wider client base.
2. U.K. Mobile Wallet Market Reach
Among the many European countries that offer digital banking, UK is going to show promising growth by 2026. It even had a market share above 20% in 2019. The figure will be even more high in the future.
A major reason for this is increasing customer awareness of the concept and advantages of mobile banking. These include increased ease and transparency in transactions, a wide variety of channels for making payments, and many more.
Key factors have led many conventional banks to reorganize their offerings and set up user-friendly mobile money solutions in order to grow their customer base.
3. North American Dependence on Closed Mobile Wallets Will Increase
The North American mobile wallet market would reach over $80 billion by 2026. The issuer of a close mobile wallet designs it in whole or in part for services provided. The closed mobile wallet segment will show a strong growth in digital payment trends over. The next few years in the region and grow at a 20% CAGR from 2020 to 2026.
One of the major reasons for this is security issues such as cyber-attacks. A large proportion of mobile wallet creators are not adequately equipped to deal with such attacks. This entails major financial losses for the company and a loss of customer trust. Hence, many clients prefer to use a closed mobile wallet solution to keep their cash secure.
Moreover, North American banks are reported to be the largest owners of mobile wallets as they attribute. The increasing focus of banks to enhancing the customer experience by introducing them to convenient and transparent banking procedures.
4. Mobile Wallet Utilization in Emerging Asia-Pacific Economies
The mobile wallet market size in the Asia-Pacific region will exceed $200 billion by 2026. Countries such as India, Singapore, South Korea, and China are undergoing a period of economic transition.
This led to an increase in the demand for digitization in these countries, which led to the creation of cutting-edge technologies in the banking sector to stimulate economic growth.
The usage of mobile wallets has increased tremendously as now the local population has realized the benefits of digital wallet app development. To make transactions easier for customers, many banks in the Asia-Pacific region are increasing their R&D financing to introduce their own mobile wallet solution.
5. Increased Utilization of NFC Technology in Asia-Pacific
NFC technology is expected to grow at a rate above 20% by 2026 in Asia-Pacific. The main reason for this growth rate is that NFC-enabled. Mobile wallets have added security and prevent. The unauthorized transfer of data from one device to another.
It also builds encryption and a secure communication channel between a POS system. And the device, as well as a message authentication system.
The security functionality of this technology can also be tailored to end-user needs. Resulting in increased demand for NFC-enabled mobile wallet app development.
Summing Up
The number of internet users are increasing drastically across the world. It is calculated that by the end of 2021 there will be 650 million internet users. The demand for an easy payment method will grow constantly and it will boost the uses of mobile wallets.