LONDON – The mobile payments market is expected to grow at a CAGR of more than 21% during the forecast period. Mobile payments encompass several types of payments, including mobile proximity payment, m-commerce, mobile P2P, and mobile POS. The most successful mobile payment systems in the future will be those that utilize the versatility of a mobile P2P or m-commerce system to achieve omnichannel reach, as services in Asia have already done such as the Indian services Paytm and PhonePe that utilize the national real-time payment system, as well as WeChat Pay and Alipay in China.
The Mobile Payments – Thematic Research report offered by GlobalData Plc helps us understand the impact of mobile payments on the broader payments sector and gain insight into coming regulatory changes that will affect mobile payments. It also sheds light on what the leaders and disruptors in the mobile payments segment are doing in their areas of expertise.
Key Technology Trends Impacting the Mobile Payments Theme
- Biometrics
- Blockchain
- CBDCs
- Cryptocurrency
- Data Analytics
- Digital Wallets
- Machine Learning
- RTP
- Tokenization
- 5G
Biometric technologies represent a set of solutions that can help improve mobile payment security while reducing friction layers during the payment process. Biometric identifiers such as fingerprints, facial recognition, and voice recognition are difficult to replicate by criminals, which should help reduce the amount of fraud in the case of device theft compared with password-based security.
Key Macroeconomic Trends Impacting the Mobile Payments Theme
- COVID-19
- Cross-Border Payments
- Emerging Economies
- Environmental, Social, and Governance (ESG)
- Geopolitics – China
- Geopolitics – Russia
- Increasingly Cashless Societies
- The Rise of Millennials & Gen Z
- Super Apps
The current landscape of online cross-border payments is still dominated by MoneyGram and Western Union. But new challengers such as WorldRemit and Wise are challenging the long-established players. Both Wise and WorldRemit can offer international cross-border transactions at a lower rate than MoneyGram and Western Union. And to increase their customer reach, both of these challengers are establishing regional partnerships.
Key Regulatory Trends Impacting the Mobile Payments Theme
- Electronic Payments Push
- Open Banking/PSD2 Regulation
- Pressure On Card Fees
- Regulation: Blockchain
- Regulation: BNPL
- Regulation: Fintech
- SCA
The payments industry in general has historically pushed for cashless societies in the interest of maximizing the proportion of transactions that generate revenue. Regulatory efforts to reduce cash use, such as those seen in Italy and India (usually with the aims of reducing the size of the black economy and bolstering tax revenues from easily tracked electronic payments), tend to have the full support of the payments industry. COVID-19 has accelerated this push, with mobile payment services launching
Value Chains of Mobile Payments Market
- Consumer
- Merchant Acceptance
- Payment Processing
Due to the proliferation of mobile devices, such as smartphones and wearables, consumers have become accustomed to doing almost everything on these devices, whether it is connecting with people, looking for restaurants or shops, checking subway and bus timetables, or listening to music and taking photos.
Leading Companies Associated with the Mobile Payments Theme
- ACI Worldwide
- Adyen
- Affirm
- Afterpay
- Ant Group
- American Express
- Apple
- Barclays
- China UnionPay
- Danske Bank
- Discover Financial Services
- EMPSA
Mobile Payments Market Report Scope
- Card-based payment schemes such as Visa, Mastercard, and UnionPay still enjoy strong positions due to their sheer scale.
- The point-of-sale terminals market has adapted relatively well to mobile payments as they currently exist in the developed world.
- Mobile payments are poised for major growth in the next few years, being one of the few areas in the whole payments industry that has seen a positive impact from the COVID-19 pandemic.
Source: GlobalData Plc
