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Increasing Adoption of NFC to Create Opportunities for the Global Mobile Wallet Market until 2020, Reports TechnavioTechnavio analysts forecast the global mobile wallet market to grow at a CAGR of 34.58% during the forecast period, according to their latest report. The research study covers the present scenario and growth prospects of the global mobile wallet market for 2016-2020. The report considers the total revenue generated from retail transactions sourced through mobile wallets. These transactions, include m-commerce, mobile ticketing and coupons, money transfer, and micropayments. About mobile wallets Mobile wallets use digital technology to enable consumers pay online while shopping from e-commerce portals. Brick-and-mortar retailers can also offer mobile wallet payment options to enhance the shopping experience. These competing considerations may create market opportunities for merchants, acquirers, and issuers during the forecast period. A mobile wallet is a one-stop platform for individuals to maintain a record of e-commerce, mobile content, and sales transactions. As payment represents the core function of mobile wallets, top vendors must offer value-added services, such as QR code technology. Technavio media and entertainment analysts highlight the following four factors that are contributing to the growth of the global mobile wallet market:
Increased adoption of NFC and POS terminals in developed countries Mobile wallets enable customers to access and avail offers, coupons, and rewards. It also confers more security than carrying cash while travelling. The transaction failure rate of a mobile wallet is minimal (less than 10%) when compared to other electronic payment gateways that have an average of 19%-20% failure rate. Such failures are mostly blamed on banks' network. Bharath Kanniappan, a lead internet and e-commerce analyst at Technavio, says, "In a mobile wallet, the cash is stored in electronic form, and in most cases, the bank is bypassed during the transaction. Low-cost NFC technology and touchless payments characterize the use of mobile wallets, wherein the user can wave the mobile device across a POS terminal to pay for goods and services." The growing use of smartphones and tablets in developed countries has popularized mobile wallets. This has forced merchants to adopt platforms that facilitate mobile payments at their outlets. The use of NFC and POS terminals for such payments has increased the value proposition and effectiveness of vendors' marketing efforts. Technavio predicts that this rise in adoption of NFC and POS terminals may boost the global mobile wallet market during the forecast period. High transaction volumes through m-commerce Rise in demand and use of m-commerce is witnessed due to growing number of smartphone users and high Internet penetration worldwide. Mobile wallets are increasingly being used for transactions in m-commerce. The advantages of m-commerce include easy access to a product without any time and location constraints, flexible and easy payment services to clients, and enhanced brand recall value, which should benefit vendors in the long-run. "Companies are introducing mobile coupons that can be redeemed for discounts when a consumer buys goods using m-commerce technologies. Companies send these coupons to consumers through mobile advertisements. The customer can mention the coupon code while making a transaction using the mobile device to avail the discount. This initiative is implemented to encourage consumers to buy goods using their mobile devices," adds Bharath. Huge addressable unbanked market potential A significant percentage of the population does not have access to banking or any financial services. But of the 700 million people that had access to financial services in 2015 a majority people have smartphones. Mobile wallets facilitate access to financial services at affordable prices and help people manage their accounts. In many developing countries, mobile network operators (MNO) have deployed agents in rural and remote locations to create awareness about mobile wallet services. Money transfer is the most widely used feature as it provides real-time transactions, allowing maximum convenience for end-customers. Growth in in-app purchases in free games The transaction of virtual goods and micro-transactions accounts for 40% of the online gaming market revenue. The revenue share is attributed to the growing number of in-app purchases, which require users to pay for virtual goods, such as weapons, dresses, or potions, to enhance and progress in the mobile gaming sector. Apple (News - Alert), which used to charge a fee for downloading applications, has welcomed the free-to-play (F2P) model, so that it can charge premium gamers through in-app purchases while maintaining sustainability.
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Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
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