Mobile Payments Market Size, Share, By Purchase (Airtime Transfer and Top-Ups, Money Transfers and Payments, Merchandise and Coupons, Travel and Ticketing, and Digital Products), By Type (Proximity Payment (Near Field Communication (NFC) and QR Code Payment) and Remote Payment (SMS-Based, USSD/STK, Direct Operator Billing (Credit/Debit Card-Based), and Digital Wallet)), and Region - Trends, Analysis and Forecast till 2034

Mobile Payments Market Size was valued at USD 1086 Billion in 2024 and is expected to reach USD 3908.3 Billion by 2034 growing at a CAGR of 15.1%.

Mobile payments allow you to make secure transactions from your mobile device – usually smartphones or tablets – instead of using cash or card. Technologies that make this work are near-field communication and mobile payment applications. NFC stands for Near Field Communication, which is a wireless communication technology over near-field areas enabling devices to communicate with and share data by bringing them in close vicinity with one another. This has several applications in contactless payment, file transfer, and the fast and easy connecting of devices. Advancements in technology, with the integration of artificial intelligence and machine learning, will continue to make the mobile payment experience smarter by detecting fraud more astutely, providing better and personalized recommendations, and improving customer support.

Key Drivers of Target Market:

Paybacks and Reward Strategies:

• Recently many payment service providers have pumped in big money, and undoubtedly, business in payment service has intensified the raging competition for the market; this includes consumers maintaining their base and fostering new ones through new strategies applied by the companies running payment apps such as Google Pay, Alipay, Amazon Pay, and other recently developed ones.
• For example, Google Pay creates scratch cards with an amount that can be availed by doing a smaller number of transactions. The initiatives are all such that they maintain customer loyalty and make the users pay through the smartphones. The companies have found themselves sharing a certain percentage of rewards or cashback to the customers in case of usage of the mobile channels for any transaction. With the application of such reward facilities, the customer finds the tendency of going to the mobile app for making every payment.
• The companies can think about offering an app for keeping points. For instance, in Samsung Pay, the users of its smartphones get reward points for every purchase they do using the device. The users allow the reward points to buy their products. There are myriad other industries, again customer-oriented, which include travel and tourism, restaurants, retail stores, and hospitality sectors that have already started to cash in on the mobile apps, having rewards and coupons. Of recent is the Hilton Worldwide that started room booking and payments through their own app, Honors, to have more customer engagement. The mobile payment market share is expected to be driven by this.

Increased Global Adoption of Smartphone:

• Improvements In the past few years, the rate of smartphone adoption has increased manifold in countries like Canada, China, and India. Along with it, 3G and 4G connectivity has also become quite prevalent and users have an easy access to services over their smartphones. By the end of 2018, the number of 4G connections crossed one billion globally from 55% to 75% when compared to the previous year in countries like the UK. Up-to-date technology has ensured that the cost of a smartphone is now relatively cheap for the consumers. On top of this, increasing the distribution network has effortlessly made these devices readily available for the end users due to the fast distribution network expansion undertaken by the smartphone industry.
• Major mobile phone brands, such as Samsung, Micromax, and Karbon, among others, have been familiarized with rural Indians who     have a widespread distribution all over India. As a result, rural Indians can now easily access online services through their phones. The growth of the mobile payment market is being driven by merchants' and consumers' capability to make and accept payments through their smartphones. This is due to increased usage of smartphones, coupled with better and faster connectivity.

Growth in the M-Commerce Industry:

• Growth in the adoption of smartphones and quick connectivity has given a boom to mobile commerce in the past few years. Ordering, receiving items at the doorstep, proves to be convenient, and thus consumers are increasingly opting for mobile purchases for various goods and services like books, groceries, health & beauty products, apparel & accessories, and computer & electronics. Besides, promotional offers and discount coupons offered by various merchants on the platforms of m-commerce attract the attention of customers to make mobile purchases.

Restrains:

Security Concerns and Inconvenience of Using Cash to Impact Mobile-based Transaction:

• Even though mobile payment solutions provide several features in regard to better operability, reliability, and flexibility, still a majority of end-users are comprehensively dependent on cash for their daily activities. People have been using the traditional payment mode for several years, and thereby, they are reluctant to adopt new technologies.
• The habits are the reason why customers feel safe using the traditional mode of payment when the transaction amount is huge. The mode of payment also stores information such as location, amount balance, purchasing pattern, card PIN, and others. This multiplies the risk of unauthorized usage of this personal information, raising security concerns in the minds of customers. This is most likely to hamper the growth of the global market.

Opportunities:

Increase in Use of NFC, RFID, and Host Card Emulation Technology in Mobile Payments:

• Mobile and contactless payments step into the arena with integral parts known as near-field communication and radio frequency identification. Many manufacturers of mobile devices, such as Apple, Samsung, and Huawei, plan to use the technologies of NFC and RFID in developing their contactless cards and mobile devices, which is forecasted to give PayEe remunerative opportunities to grow in the global market. Also, various organizations are incorporating both NFC and host card emulation technologies to empower their customers to access products featured on their mobile devices with much ease.
• For example, KFC in the UK in 2019 ran an NFC-based ad campaign. The primary purpose for running this campaign was to offer its Hot Shots Meal Box. Through the use of the NFC-based solution, ordering can be done through tapping on an LED screen. KFC introduced this service to promote home delivery services and raise the adoption rate of contactless payment systems. Additionally, the companies are incorporating host card emulation technology into their mobile devices, enabling them and improving the performance of various mobile devices; thus, proving to be a potential growth opportunity for the market.

The market is segmented based on Purchase, Type, and Region.

Purchase Insights:          

• Airtime Transfer and Top-Ups: Airtime transfer and top-ups are the amount of money added to a prepaid mobile account in order to make calls, send texts, and use data services. This forms the bedrock of operations in high-prepaid-mobile-user-density markets, essentially holding sway in Africa, Southeast Asia, and parts of Latin America. The principal drivers for this segment are rising mobile penetration and recharging convenience any time and from anywhere. Furthermore, this has been heightened by mobile money services that facilitate the transfer of airtime to others, more so in areas where a great number of people lack access to traditional banking services. Airtime top-ups have also been very instrumental in improving financial inclusion, in the sense that they facilitate a very basic service—communication and keeping in touch. Considering that mobile technology does not stop evolving and more people embrace digital payment methods, this segment keeps on growing.
• Money Transfers and Payments: Mobile money transfers and payments are cases wherein people make use of their mobile devices for transferring money, making payments, and other transactions. This sector brings financing accessibility and convenience into areas that earlier were unserved or underserved by conventional banks. This segment would also realize some benefit from the growth in e-commerce and online marketplaces where mobile payments serve to facilitate the actual purchasing process. Government initiatives and private-sector efforts boost mobile money services, thereby giving a special edge to their adoption in developing regions. Overall, money transfers and payments via mobile devices are changing the way people handle their finances.
• Merchandise and Coupons: Merchandise and Coupons in the mobile payment market involve transactions where users purchase physical merchandise and redeem digital coupons through their mobile devices. This segment closes the gap between traditional retail and digital convenience, allowing users to shop both online and in-store with mobile payment methods. Digital coupons add value by providing discounts and promotions that are easily accessed and redeemed through mobile apps. Many of these coupons get intertwined with loyalty programs, thereby encouraging repeat business and customer retention. With merchants continuously accepting mobile-friendly payment solutions and consumers reaching out to their smartphones while shopping, the Merchandise and Coupons segment is bound to grow in the near future.
• Travel and Ticketing: The mobile payment market in relation to travel and ticketing primarily involves the use of mobile devices for booking and making payments for travel services such as flights, trains, buses, accommodation, and tickets to various events. This speeds up the booking process, thus making it faster and easier for clients to plan and manage their travel needs. Moreover, very often, mobile payments are accompanied by all types of additional benefits, such as exclusive discounts, loyalty points, and personalized offers that improve the traveling experience. This continuous recovery and growth in the adoption of travel and tourism could support the enhanced take-up of mobile payment solutions across the sector for the purpose of travel and ticketing, as powered by the demand for seamless and efficient booking processes.
• Digital Products: Digital products in the mobile payment market include non-physical goods that are purchased and consumed digitally using a mobile device, such as apps, music, movies, e-books, games, software, subscriptions to streaming services, and others. The segment develops along with increasing usage of smartphones and tablets for leisure, education, and business purposes. Furthermore, popularization of subscription-based models and microtransactions in apps and games has exponentially accelerated the segment. These models offer flexible payment options to users, mostly based on recurring payments, guaranteeing providers a stable source of revenue. In sum, the mobile payment market of the sector of Digital Products is expected to grow, with ever-increasing digital content consumption, in response to increasing user demand for ease of use, diversity, and access to digital goods in an instant.

Type Insights:

• Proximity Payment: This is one of the most popular types of payment in the physical retail environment due to its speed and security. Wide diffusion of NFC-enabled devices and ease of use both for consumers and merchants are some of the growth drivers. Proximity payments improve the shopping experience by offering a quick and easy way to pay. Proximity Payment: Contactless transactions where a mobile device is brought near a payment terminal. Some of the key methodologies include Near Field Communication and QR code payments. Key players are Apple Pay, Google Pay, and Samsung Pay for NFC, and Alipay and WeChat Pay for the QR code camp.

o   Near Field Communication (NFC): A contactless payment technology which enables users to conduct transactions by simply tapping their NFC-capable devices on a compatible terminal. Frequently used for quick and safe retail transactions. Some of the major drivers include increased adoption of NFC-capable devices and improved security features; convenience in small, frequent transactions.

o   QR Code Payment: Those made by scanning a QR code displayed at the point of sale using a smartphone; this is very common, especially in Asia, in markets that have high smartphone penetration. Some of the growth drivers for this include low cost for implementation by merchants, ease of use, and compatibility with various mobile devices.

• Remote Payment: Remote Payment is a term used for transactions executed from a mobile device without the need to physically go to the point of sale. Herein, there are different methods such as SMS-based payments, USSD, STK, direct operator billing, and digital wallets.

o   SMS-Based: Basically, the user just texts to make a transaction. Typically, this would be used when settling small transactions for digital content or even donations. This way is easy and rather ubiquitous, especially in countries with limited access to the Internet.

o   USSD/STK: These systems allow for transactions to be made by dialing some codes on a mobile phone. Common in emerging markets, they offer banking and payment services sans access to the internet, making them quite workable even on basic mobile phones.

o   Direct Operator Billing (Credit/Debit Card-Based): This is a method of direct carrier billing that allows users to charge purchases directly to their phone bill or, in the case of a prepaid subscriber, deduction from balance. It is predominantly used for the purchase of apps, games, and other digital content, giving a frictionless transaction experience without needing credit/debit cards.

o   Digital Wallet: Applications like PayPal, Google Wallet, and Apple Wallet store users' payment information to make transactions easier and more secure online and in-app. They allow many different kinds of payments, including peer-to-peer transactions, online, and bill transactions.

Regional Insights

• North America: North America dominates the market in Mobile Payments due to the high degree of development in Availability of Low-Quality and Cheap Products in the Gray Market Pose as a Serious Threat to the Major Competitors
• Asia Pacific: One finds the fastest-growing Mobile Payments market in the Asia Pacific region; this is attributed to rapid economic growth, high spending on industrial development. Growing adaptation of advanced technologies.
• Europe: Europe is a mature Mobile Payments market, characterized by well-established Industrial systems with universal Market coverage in almost all countries and a serious concern of development of industrial infrastructure. It is the base of wide adoption for new technologies.
• Latin America: The Mobile Payments market in Latin America seems to be promising, driven by improving Industrial and commercial infrastructure,
• Middle East and Africa: Middle East and Africa: This region is seeing increased interest in Mobile Payments, particularly in countries with high renewable energy objectives and needing greater grid stability.

Mobile Payments Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Purchase, Type, and Region.

By Purchase:

• Airtime Transfer and Top-Ups
• Money Transfers and Payments
• Merchandise and Coupons
• Travel and Ticketing
• Digital Products

By Type:

• Proximity Payment

• Near Field Communication (NFC)
• QR Code Payment

• Remote Payment

• SMS-Based
• USSD/STK
• Direct Operator Billing (Credit/Debit Card-Based)
• Digital Wallet

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Mobile Payments Market Includes PayPal, Apple Pay, Google Pay, Samsung Pay, Alipay, WeChat Pay, Venmo, Square, Stripe, M-Pesa, Paytm, Amazon Pay, Zelle, Cash App, Klarna, Adyen, Revolut, TransferWise (Wise), Visa Checkout, and Masterpass (Mastercard).

• In April 2023, Visa has announced it's partnering with PayPal and Venmo to pilot Visa+. This innovative service aims to help individuals move money quickly and securely between different person-to-person (P2P) digital payment apps. Through this collaboration, Visa+ will expand its reach and enable more use cases, including gig, creator, and marketplace payouts. Participating digital wallets, neo-banks, and other payment apps reaching millions of US users will be able to enable interoperability through Visa+.
• In March 2023, PayPal has announced Secure Payments to customers to access their account by introducing passkeys on Apple iOS as a new, easy, and secure log-in method for eligible PayPal customers and passkeys to eligible customers on Google Android devices, starting on Android mobile web.

• PayPal
• Apple Pay
• Google Pay
• Samsung Pay
• Alipay, WeChat Pay
• Venmo
• Square
• Stripe
• M-Pesa
• Paytm
• Amazon Pay
• Zelle
• Cash App
• Klarna
• Adyen
• Revolut
• TransferWise (Wise)
• Visa Checkout
• Masterpass (Mastercard)