Mobile payment market predicted to hit $3.5 trillion by 2023, according to study
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The global mobile wallet industry is experiencing a surge in growth, with the total value of digital wallet transactions predicted to reach an astounding $10 trillion by 2024, and forecasted to grow by 70% to exceed $17 trillion by 2029. This expansion is not limited to online transactions, as broad adoption in physical stores worldwide is also driving this growth.
According to a report by PYMNTS.com, the United States is a key player in this expansion, with mobile payment users on average spending approximately $3,693 via mobile wallets in 2024, marking an 87% increase since 2020. The U.S. market is expected to grow by 49% to $698 billion in 2023.
Leading companies in the mobile payment market include Stripe, which processed USD $1.4 trillion in payments in 2024, and Fiserv, known for its Clover platform. Emerging trends in the market include the integration of wallets into super apps and embedded finance. Additionally, Web3 wallet providers like Best Wallet are projected to grow rapidly with increasing cryptocurrency adoption, aiming to capture significant market share in the crypto wallet segment.
The digital payments market, inclusive of mobile wallets, is expected to reach approximately USD 121.5 billion in revenue by 2025, growing at a compound annual growth rate (CAGR) of roughly 19.4% to USD 358.8 billion by 2030. The embedded finance sector, closely related as it integrates financial services into digital platforms, is forecast to grow even faster, with a CAGR of 36.4% from 2025 to 2030, reaching nearly $690 billion globally.
Notably, QR code transactions are predicted to dominate the volume of mobile wallet transactions, with global QR code payments via mobile wallets projected to total $5.4 trillion in 2025, increasing by 48% to over $8 trillion shortly thereafter.
As the world continues to grapple with the COVID-19 pandemic, the adoption of contactless payments has accelerated, with retailers increasingly accepting contactless payments and expecting greater adoption of the technology in the future. This shift towards mobile payments is not limited to the U.S., as Asian countries, particularly China, are leading the mobile payments market. China's infrastructure facilitated the rapid adoption of mobile payments, while credit and debit cards never gained traction as they did in other parts of the world.
Recent developments in the mobile payment market include PayPal's acquisition of Curv to expand into cryptocurrencies and digital assets, thereby building on the company's strategy to expand its digital wallet capabilities to buy, sell and hold cryptocurrency. Additionally, 7-Eleven debuted a mobile wallet that lets consumers make contactless payments at select locations in December 2020.
In Western countries, the adoption of mobile payments is accelerating, but cash, credit cards, and debit cards remain the dominant forms of payment. The U.S. mobile payments market is the second-largest, with $465.1 billion worth of transactions in 2021. The average value for mobile point-of-sale transactions was $1,670 in 2021, a 25% increase from 2019.
In conclusion, the global mobile wallet market is experiencing rapid growth, with the U.S. market leading the charge. The integration of wallets into super apps, embedded finance, and the rise of Web3 wallet providers are emerging trends to watch in the coming years. The future of mobile payments looks bright, with growing adoption and increasing transaction values forecasted for the coming years.
References:
- PYMNTS.com
- Finaria
- Blackhawk Network
- National Retail Federation
- The integration of AI and technology in personal-finance is becoming a trend, with artificial intelligence streamlining financial decision-making and budgeting for individuals.
- The rapidly growing mobile wallet industry has caught the attention of the finance and banking-and-insurance sectors, with many establishments investing in fintech companies to capitalize on this expanding market.
- As the space industry progresses, there is a possibility of witnessing the deployment of advanced technology for secure and efficient space-based transactions using mobile wallets in the future.
- Despite the surge in mobile wallet usage, traditional methods like cash, credit cards, and debit cards continue to dominate the business sector globally, with finance executives cautiously observing and adapting to this changing landscape.
- With increasing adoption of mobile payments, the investing community is paying closer attention to the digital wallet market, assessing its potential growth and seeking opportunities for profit in the fintech industry.
- The growth trajectory of the global mobile wallet market may significantly impact the overall economy, contributing to the expansion of the industry and triggering further innovations in the AI, space, and finance sectors.
