The increasing use of internet network all over the world coupled with advancements in this network such as 3G and 4G are the major factors driving the global mobile wallet market. Mobile wallet, also termed as electronic wallet, provides the reliability to the consumers to make payments and purchases electronically. Generally, mobile wallets provide the storage of credentials through cloud or on device, which can be later used to make payments. The electronic mobile wallet also provides the integration of coupons, cards and multiple tickets which reduces the hassle of keeping multiple cards. The rapidly increasing usage of smartphones is also a factor propelling the mobile wallet market. The continuous advancements in Near Field Communication (NFC) technology and safe payment methods are the factors expected to further fuel the global mobile wallet market.
The mobile wallet payment on the basis of transaction targets is divided into person to person (P2P) payment and customer to business (C2B) payment. On the basis of communication range, it is divided into remote payment and proximity payment. Proximity payment is a contactless payment method where a user makes payment through short range communication technologies such as infrared, Bluetooth, RFID and Near Field Communication (NFC). Remote payment is the process where the user makes payment through mobile devices and operates back end system of mobile payment through communication networks. The increasing smartphone penetration, advancements in internet network and the rapid growth of internet based mobile applications are the major factors driving the mobile wallet remote payment market. The global mobile wallet market on the basis of application is segmented into grocery stores, restaurants, vending machines and public transportation. The retail application of mobile wallet is expected to witness lucrative growth. Various initiatives undertaken for the retail application of mobile wallet to provide easy payment options and POS devices to the retail stores using smart phones is the key factor driving the growth of mobile wallet market in retail application. It also stores and organizes the transaction receipts at a retailer. Moreover, Visa and MasterCard are taking various initiatives to install POS NFC payment terminal, new chip based cards and magnetic stripe wipes which are expected to propel the mobile wallet market over the forecast period. The vending machines segment is another significant area for the mobile wallet technology which is also expected to impact the growth of mobile wallet market in a positive way. The vending machines provide benefits such as flexible payment services and efficient brand recall value to the merchants as well as providers.
The entire mobile wallet market is segmented on the basis of regions into North America, Europe, Asia Pacific and RoW. As of 2013, North America dominated the global mobile wallet attributing the largest market share in terms of revenue. The increased usage of smartphones and early adoption of advanced internet services such as 3G and 4G are the major factors fueling the mobile wallet market in this region. Various government initiatives and regulations for the online payment services are some of the factors expected to further fuel the mobile wallet market in this region. Asia Pacific is expected to witness a lucrative growth over next six years owing to the rapidly increasing awareness about mobile wallet and online payment services and increasing smart phone usage in this region. Mobile wallet market is witnessing huge opportunities and a strong momentum in the newly emerging countries such as China and India.
The key players in the global mobile wallet market are differentiated on the basis of their role in the market. The major stakeholders in the market include customers, merchants, intermediaries, payment network, financial institutions and mobile network operators. Some of the key players in the market include Paypal Inc., MasterCard, ISIS, Googe, First Data, BlackBerry, Apple Inc. and American Express Inc.
Research Support Specialist, USA