Mobile Wallet Market Size

Mobile Wallet Market Analysis

The Mobile Wallet Market size is estimated at USD 13.79 billion in 2024, and is expected to reach USD 45.17 billion by 2029, growing at a CAGR of 26.78% during the forecast period (2024-2029).

Over the years, the mode of payment has become increasingly streamlined, from cash to debit cards to online transactions. Additionally, the advent of eCommerce methods such as Paypal has initiated major mobile wallet adoption. Since then, the digital wallet concept has evolved, replacing the traditional physical-digital wallet. With the recent outbreak of COVID-19, the market is expected to witness significant growth owing to an increased usage of digital payment services. Over the years, the smartphone industry has seen rapid technological advancements in terms of features offered, such as NFC, 5G adoption, biometrics, encryption, and AI, among others, which are evident with greater penetration of smartphones in users' daily activities, thereby leveraging the growth of various industries, including the financial industry, which is leveraging the gaining momentum of growing smartphone users owing to the cost-effectiveness of smartphones.

• Furthermore, platforms such as eCommerce and mCommerce have played a significant role in changing users' habits when performing monetary transactions such as shopping by allowing users to enter their banking information into their respective wallets and enabling mobile phones as a mode of payment in place of credit and debit cards while ensuring security is handled on their side by leveraging technologies such as tokenization and essentially eliminating the risk of being stolen.
• Near-field communication, sound wave payments, and MST payments are examples of mobile-point-of-sale solutions that allow service and sales organizations to conduct monetary transactions in a flexible manner without being limited to a single location.allowing merchants to run mobility businesses such as food trucks and trade shows while improving the user experience, as is evident by major retailers' adoption of mPOS technology to support declining foot traffic. For instance, NFC powers the technology behind major mobile wallets like Apple Pay, Samsung Pay, and Google Pay.
• Additionally, mobile payment systems are expanding beyond the scope of smartphones and tablets with the use of wearable technology such as smartwatches and rings. Vendors are now embracing IoT while leveraging the potential of disruptive technologies such as blockchain to ensure the security of the transaction and counter concerns over data privacy. For instance, Apple Inc. offers services such as contactless payments, person-to-person payments, and transit cards through their mobile wallet and offers Apple Pay on their smartwatch, called the Apple Watch.
• The market benefited from the COVID-19 pandemic. Government laws and travel limitations led industry participants to temporarily close most of their offices, forcing them to alter their business practices. For example, NICE embraced hybrid and work-from-home work arrangements and limited staff travel. Most key market participants experienced increases in revenues throughout the epidemic, even though most acknowledged that the pandemic was a risk to their firm and were unsure of its impact. 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.