Increasing adoption of advanced technologies such as near field communication (NFC), wearable devices, and mobile point-of-sale (M-POS) are expected provide a significant drive to the global mobile payment technologies market in the forthcoming years.
This is according to a recent Transparency Market Research firm which notes the global mobile payment technologies market is expected to be worth about $1 773.17 billion by the end of 2024 as compared to $338.72 billion in 2015. During the forecast years of 2016 and 2024, the global market is expected to progress at a compound annual growth rate of 20.5%, it says. Currently, the mobile payment technologies market is expanding at a higher rate due to the increasing adoption of smartphones and tablets across emerging economies, adds the report.
The adoption of immediate payment technologies are unceasingly increasing in developing regions such as Asia Pacific and Middle East and Africa, says the report. This is also a major factor which is expected to boost the mobile payment technologies market in the coming years, it adds. The research firm predicts Asia Pacific will lead the pack in the coming years as it is slated to account for a share of 42.5% in the global market by the end of 2024. Also, rapid developments in the mobile payment solutions to provide better payment service to the end-users are also anticipated to fuel the growth of the mobile payment technologies market.
Moreover, integration of Internet of things with payment applications provides significant opportunities to extend payment solution offerings and develop enhanced payment technologies, says the report, Therefore, it is anticipated that the Internet of things will boost more payments through digital wallets during the forecast period, it adds. However, low consumer interest for picking new technology is a major factor restraining the growth of the mobile payment technologies market, says Transparency.
Allied Market Research says mobile payments through short message services (SMS) mode dominate the market, whereas NFC will witness growth in coming years and is anticipated to grow at a robust rate, it adds. The need for a cost-effective and convenient payment mode has led to the development of new and innovative mobile transaction technologies and mobile applications such as Apple Pay and Samsung Pay, says the report.
Juniper Research says nearly 3 billion users will access retail banking services via smartphones, tablets, PCs and smartwatches globally by 2021, up 53% from this year. The research firm notes usage of tech devices for banking purposes will continue to rise as consumers increasingly opt for banks offering the convenience of rapid, multi-channel digital services. This means that banks will need to focus on providing a more frictionless digital experience to their customers, especially if they are to remain market leaders, adds the report.
Mobile is playing a central role in delivering digital and financial inclusion, key challenges that must be addressed if the world's growing population is to be empowered to share in the benefits of the rapidly developing digital economy, says GSMA 2016 report. It says the mobile money industry is now widely established, bringing financial inclusion to previously unbanked and underbanked populations across the developing world.
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