APAC Mobile Payments Market Size

APAC Mobile Payments Market Analysis

The Asia Pacific Mobile Payments Market is expected to grow at a CAGR of 23.91% over the forecast period (2022 - 2027). With the changing lifestyle, Increased smartphone penetration, and the latest online retailing trends, the mobile payments market in Asia-Pacific is expected to grow significantly over the forecast period.

• The mobile payment landscape across the Asia-Pacific region is changing rapidly, owing to unsettling digital transformation. The technological developments in the smartphone have enabled POS at retail terminals and on-the-go fund transfer, which are fueling the global market growth. Mobile payment platforms, such as Tencent, based in China, have witnessed robust growth. Tencent also expanded in other Asian countries, like Thailand, and it is searching for major partners that can help it localize its services in the country.
• According to the India Brand Equity Foundation (IBEF), India had over 1.18 billion mobile connections, 700 million internet users, and about 600 million smartphones as of October 2021. Each quarter has seen a sharp increase in these numbers. India led the world in terms of the volume of real-time payment transactions in 2020, with over 25.5 billion. Consequently, there is a raising need for smartphones. It is ultimately expanding the mobile payments market, further accelerating market expansion. The market is also growing due to increasing government efforts, funding, support, and funding from several large businesses.
• The rise of e-commerce and the O2O market has created an abundance of scenarios for people to adopt mobile payments in recent years. According to WorldPay, digital/mobile wallet is expected to occupy 60.2% of e-commerce payments by 2024 in the Asia-Pacific region, followed by credit card (16.1%). On the other hand, mobile payment played a crucial role in reducing friction and making on-demand, small-ticket services easily adoptable when they first began to emerge in the region. Rapid developments in these sectors, in turn, further drive the uptake in mobile payment usage.
• Increasing standardization and interoperability in cross-border payments are among the highest priorities for regulatory bodies. One such initiative is the ISO 20022 standard for messages across cross-border payments; the standard for electronic data interchange between financial institutions is expected to begin in late 2022 instead of November 2021 as SWIFT had initially planned; these delays are also hindering the market growth.
• The Ministry of Commerce (MOFCOM) and the National Health Commission (NHC) ministries of China collaborated to issue the 'Notice Concerning Properly Performing Life Services Enterprise Work to Prevent and Control the Spread of the Novel Coronavirus Infectious Pneumonia.' The notice requires the Chinese consumers to use swipe card payments and various types of mobile payments methods for settlement purposes during the COVID-19 outbreak.