Mobile wallet market continues fast pace growth

The size of the global mobile wallet market size is expected to reach $30.2bn by 2028.

This represents a market growth of 27% CAGR.

So says a new report from Research and Markets.

It points to a completely new dimension provided for retailers through the use of mobile wallets which enhance their commercial presence. Mobile devices give customers a simple way to pay. They also open up new lines of communication for businesses and financial institutions with their customers. What’s more, mobile devices make it simple to send and collect data; they may operate specialized programmes and keep track of their position.

The key is the ability to interact with customers about special offers in a way that is focused, practical and more appropriate to their interests. This is made possible by mobile connections for retailers and financial institutions. Companies may also create new branded apps which are available for free download.

Covid-19

The pandemic boosted mobile wallet use, with the majority of the key market participants experiencing revenue increases. Mobile payments and digital transactions were propelled globally by the pandemic. It sped up the e-commerce sector’s expansion into new markets, businesses and product categories. Due to these constraints, mobile wallets have become a practical way to sustain cash flow and maintain profitability.

Market drivers

Factors driving further expansion include a growing fintech sector which has promped banks to push forward with technological investments. The growing fintech sector investment opens up an attractive potential for the growth of the mobile wallet industry. There is an increase in the investments by various companies in the development of new fintech solutions and services.

A further factor is that mobile wallets conveniently and securely offer possibilities for online bill payments as well as other money transfer services. Additionally, more customers are choosing mobile wallets due to their user-friendly layout, which allows them to collect and make regular payments whenever it’s convenient for them. In addition, the user-friendly interface makes it simple to transact while travelling, which is a significant element anticipated to fuel the market’s growth.

Risk factors

Although a slowdown in the market is unlikely, one risk factor is the threat of cyberattacks which could put a stop to the continuous expansion of the industry.

Fintech service providers are increasingly vulnerable to different types of cyber breaches as a result of their quick adoption of new technologies and features to meet client requests. This could have an adverse effect on the growth of the mobile wallet market concluded the report.