Mobile Payment Market Worth $273.1 Billion By 2028

The global  Mobile Payment Market  size is expected to reach USD 273.1 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 31.8% from 2021 to 2028. The rising penetration rate of smartphones and the growing preference for contactless payments across the globe are expected to drive the growth of the market over the forecast period. Continued integration of biometric authentication into mobile payments also bodes well for the growth of the market. According to a study published by Biometric Update, the use of biometrics in mobile commerce, app-based purchase, and mobile device payments is expected to emerge into a market worth USD 3.0 trillion by 2025.

Solution providers are aggressively facilitating smart parking payment solutions. For instance, in February 2021, Google announced a new feature that allows users to pay for parking slots within Google Maps. The feature would be available for Android users in over 400 U.S. cities and would soon be rolled out for iPhones also. Transit companies are adopting mobile ticking aggressively, thereby contributing to the growth of the market. For instance, in August 2020, Saskatoon Transit, a mass transportation system provider, announced the rollout of a new service that allows people to buy tickets on their smartphones.

Smart speaker payments are gaining traction and are expected to play a vital role in driving the growth of the market. Leading developers of smart speaker payment solutions, including Amazon, Apple, and Google, are pursuing strategic initiatives, such as mergers and acquisitions and strategic partnerships, to promote the technology. For instance, in August 2019, NatWest, a retail banking company, announced a partnership with Google for a pilot project that envisages the company allowing its customers to carry out banking transactions from home using smart speakers or Google Assistant.

The outbreak of the COVID-19 pandemic is expected to have a positive impact on the market. The restrictions imposed by various governments across the globe on the movement of people as part of the efforts to arrest the spread of coronavirus and the growing preference among individuals to stay at home in the wake of the outbreak of the pandemic have particularly triggered a paradigm shift in the consumers’ shopping behaviors. Consumers are typically trying to avoid any physical contact while making payments and prefer contactless payments at the point of sale. According to the statistics provided by East West Bank, the usage of contactless payment modes in the U.S increased 150% over the year in 2020. Moreover, 87% of the consumers preferred using contactless payment options while shopping at stores.

Related Press Release@  Mobile Payment Market Report

Mobile Payment Market Report Highlights

• The near field communication segment is anticipated to register the highest CAGR over the forecast period owing to the growing preference for NFC-based payment solutions among merchants and customers
• The B2C segment is anticipated to register the highest CAGR from 2021 to 2028 owing to the growing use of mobile devices for making personal payments
• The proximity payment segment is expected to register the highest CAGR over the forecast period owing to the rising adoption of payment solutions based on NFC, Wi-Fi, and Bluetooth connectivity
• The retail and e-commerce segment is expected to emerge as the fastest-growing segment over the forecast period owing to the increasing partnerships between mobile payment providers and retailers
• In Asia Pacific, the market accounted for the largest revenue share in 2020. Increasing use of smartphones for online shopping of packaged food and drinks is driving the market in the region