Europe Mobile Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Europe Mobile Payments Market is segmented By Payment Mode (Proximity Payment, Remote Payment) and By Country

Market Snapshot

CAGR
Study Period: 2022-2027
Base Year: 2021
CAGR: 26.3 %

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Market Overview

The Europe mobile payments market is anticipated to grow at a CAGR of 26.3% over the forecast period (2022 - 2027). Retailers across the European region are adopting mobile payment applications, such as PayPal, Samsung Pay, Apple Pay, and Google Pay, to accept and transfer payments. Increasing internet penetration coupled with rapid growth in online retailing is expected to continue over the forecast period.

  • The growing adoption of digitalization in Europe is expected to propel growth. The digital transition continues to take hold along with the government initiatives in the related scenario is expected to encourage digital payments acceptance further would be welcomed by consumers and merchants.
  • Pay-backs and reward strategies are expected to boost the market growth in the projected timeframe. The mobile payment companies reward loyal customers with rewards points, cash back on purchases, discount coupons, and others. All this is expected to stimulate the demand for the market.
  • Mobile commerce is becoming increasingly widespread in Europe. For instance, according to PPRO, In January 2021, mobile commerce represented 60% of online retail sales in the United Kingdom, while e-commerce purchases in Slovakia at 57% were made using a mobile device.
  • An increase in data breaches and security issues in mobile payment is expected to curb the growth of the studied market. Additionally, many customers are hesitant to adopt the new technologies owing to security concerns and unauthorized use of personal data.
  • The COVID-19 pandemic has impacted numerous markets, but some needs remain unaffected. The Covid provided a big boost to mobile payments, with the European users getting aware to avoid payment modes, including physical contact with the commonly touched points in the general environment. The contactless payment offered by mobile payments helped make transactions even during the pandemic. Many retailers and e-commerce platforms enabled mobile payments during the lockdown, which gave it a great push to become the new norm.

Scope of the Report

Mobile payments refer to the different media of payments through software as a service in the smart electronic devices, including smartphones, smart wearables, or any other device facilitating the supported operating system. The payment can be made in real-time or remotely through the cloud setup.

Europe Mobile Payments Market is segmented By Payment Mode (Proximity Payment, Remote Payment) and By Country 

Payment Mode
Proximity Payment
Remote Payment
By Country
UK
Germany
France
Italy
Rest of Europe

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Key Market Trends

E-commerce to Drive the Mobile Payments Market

  • The demand for e-commerce is driven by the rising number of smartphone users and the high-speed cellular networks found in most European nations. Mobile transactions are anticipated to rise quickly along with the E-commerce sector, giving the mobile payments business a big boost.
  • According to PPRO, mobile commerce in the region stood at 60%, 57%, 55%, and 53% for the U.K., Slovakia, Hungary, and the Czech Republic, respectively. Mobile commerce is gaining grip and transforming the dynamics of e-commerce. The surge is due to the higher percentage of individuals using mobile devices. Additionally, almost every individual between 16 and 34 years will own a smartphone in 2021 in the United Kingdom.
  • Digital wallets have become a popular method for the payment of online purchases, allaying consumers' concerns about directly giving retailers their credit card information. Advanced e-commerce nations like the U.K. and Germany have quickly embraced mobile payment and digital wallets.
  • The online shopping trend observed in the region, with people going cashless to cardless, drives the market. Online B2C e-commerce purchases have witnessed a steady growth in popularity over the forecast timeframe. The increasing popularity of wearables among consumers and other portable devices is also driving the market's growth in the region.
  • The above factors are anticipated to stimulate the demand for mobile payment methods in E-commerce over the forecast period.
Europe Mobile Payment

Internet Penetration in the Europe is Driving the Market

  • Internet connectivity advancements have aided several commercial and private operations in Europe. The region has recently seen dramatic internet and network infrastructure evolution, resulting in rapidly expanding network capabilities. This has aided in the spread of the internet throughout Europe's interiors. Solid network infrastructure is a must for dependable mobile payments.
  • The widespread adoption of smartphones has enabled people to connect to the internet and use mobile payments as an alternative to cash and card payments. The region's high internet penetration lays the groundwork for the widespread adoption of mobile payments. As e-commerce companies expect instant payment on delivery, the increasing expenditure on online purchases is expected to drive demand for mobile payment. According to bevh.org, online goods sold in Germany in 2021 generated EUR 99.1 billion in revenue, up from EUR 83.3 billion in 2020.
  • Additionally, according to Consorzio Netcomm, online shopping in the region has increased in 2021. UK spent EUR 250 billion on online purchases, followed by France and its counterparts with EUR 123.4 billion and Germany with a revenue of EUR 100 billion.
  • Furthermore, telecommunications providers are stepping up their efforts to improve network connectivity through significant changes and updates. The companies intend to accelerate 4G connectivity in the region and other parts of the country while laying the groundwork for 5G expansion through hardware upgrades. These factors are expected to bolster the region's mobile payment market.
Europe Mobile Payment

Competitive Landscape

  • May 2022 - The Big Issue Group (TBIG) equipped 1,000 POS systems at the vendor's outlets via the Zettle by PayPal. Zettle will allow contactless in-person payments through Android mobile devices using Tap to Pay, omitting the need for a third device to complete the payment. TBIG is looking forward to extending the program to equip all 1,500 vendors by the end of 2022.
  • February 2022 - Soldo, a European payment and spend automation platform, launched Google Pay for customers in the UK and Italy. Integrating with Google's technology, Soldo's 30,000 customers will be able to make secure contactless in-person and online payments through apps where Google Pay is accepted.

Recent Development

  • June 2022: Bluecode and TWINT are the first mobile payment systems to become interoperable. The interoperability of said two systems is based on the specifications of EMPSA (European Mobile Payments System Association). TWINT and Bluecode interoperability has been running since January 2022
  • May 2022 - Google announced Google Wallet for Android devices. The wallet will allow the android user to make payments by using the Tap to Pay feature from the smartphone from their credit card. It will also store vaccine cards, student IDs, flight passes, concert tickets, and others. The application will be available in numerous markets, including the United Kingdom.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHT

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Adoption of the Digitalization in Europe

      2. 5.1.2 Pay-backs and Reward Strategies to Boost Market Growth

      3. 5.1.3 Instant payments are becoming increasingly widespread

    2. 5.2 Market Challenges / Restrain

      1. 5.2.1 Lack of Knowledge to Operate the Tool

      2. 5.2.2 Security Concerns and Inconvenience of Using Cash to Impact Mobile-based Transaction

  6. 6. MARKET SEGMENTATION

    1. 6.1 Payment Mode

      1. 6.1.1 Proximity Payment

      2. 6.1.2 Remote Payment

    2. 6.2 By Country

      1. 6.2.1 UK

      2. 6.2.2 Germany

      3. 6.2.3 France

      4. 6.2.4 Italy

      5. 6.2.5 Rest of Europe

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Google Pay

      2. 7.1.2 Apple Pay

      3. 7.1.3 Amazon Pay

      4. 7.1.4 Paypal

      5. 7.1.5 Samsung Pay

      6. 7.1.6 Klarna

      7. 7.1.7 Fitbit Pay

      8. 7.1.8 Garmin Pay

      9. 7.1.9 Bit Pay

      10. 7.1.10 Bluecode

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Europe Mobile Payments Market market is studied from 2022 - 2027.

The Europe Mobile Payments Market is growing at a CAGR of 26.3% over the next 5 years.

Google Pay, Apple Pay, Amazon Pay, Paypal, Samsung Pay are the major companies operating in Europe Mobile Payments Market .

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