According to a new market research report “Mobile Money Market – Global Forecast to 2024″, published by MarketsandMarkets, the Mobile Money Market to grow from USD 3.4 billion in 2019 to USD 12.0 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 28.7% during the forecast period.
Major factors expected to drive the growth of the Mobile Money Market include the rise in the number of mobile subscribers, government initiatives to promote cashless economies, and growth of businesses with digital payment-based business models.
By transaction mode, mobile apps segment to grow at the highest rate during the forecast period
By transaction mode, the mobile apps segment is expected to grow at the highest CAGR during the forecast period. Several applications offer payment services, such as Apple Pay, Google Pay, and PayPal. Some of these applications provide mobile wallet services too. Mobile applications considered under this segment include digital/mobile wallets and Unified Payment Interface (UPI) payment apps. With the proliferation of strong internet coverage in developed and some developing countries, the adoption of mobile money application has increased significantly.
Mobile-based payment app interfaces are designed to facilitate easy payment using mobile phones. It is a software intended mainly for smartphones and tablet computers. All the functions of mobile money, such as sending, receiving, and withdrawing money along with other such options can easily be accessed through these apps.
By type of payment, the proximity payments segment to grow at highest CAGR during the forecast period
By type of payment, the proximity payments segment to grow a higher CAGR during the forecast period. These payments are carried out using mobile phones and Point of Sales (POS) device. Currently, several companies offer applications that enable proximity payments. It is referred to as in-store payments in case of retail store or in-location payments with regards to payment through a merchant’s POS terminal. Proximity payments are specifically enabled for short distances and work when both the payer and payee are present in the same location.
The proximity payment type is strikingly different from remote payment as it involves the presence of payment card details from one’s own bank account and does not require any tie-up with a payment processor to facilitate transactions. Increasing adoption of mobile payment technologies by brick and mortar-based businesses further drives the demand for proximity payments.
Middle East and Africa to account for the largest market size during the forecast period
The MEA market is termed as a transforming market; it is expected to have the largest market size in 2018 with Africa showing the highest adoption of mobile money services and mobile subscriptions in the region are growing rapidly. According to the World Bank data, there were 122 mobile subscriptions for every 100 individuals in Saudi Arabia, 211 in the United Arab Emirates (UAE), and 127 in Israel, in 2017.
The growth of the Mobile Money Market in the MEA is further driven by increased investments in payment technologies made by governments of countries, such as Qatar, South Africa, and the UAE. This region has a presence of creditable Mobile Network Operators (MNOs), banks, and payment processing agents, which encourage the use of mobile money services.
For instance, in February 2019, MTN and Ericsson signed a 5-year contract extension for the distribution of new products and the provision of mobile money services in 13 countries across the MEA region. Ericsson aims to deploy the Ericsson Wallet Platform in new markets to serve MTN’s customers.
Key and emerging market players in Mobile Money Market include Vodafone (UK), Google (US), Orange (France), FIS (US), Paypal (US), Mastercard (US), Fiserve (US), Airtel (India), Gemalto (Netherlands), Alipay (China), MTN (South Africa), PAYTM (India) Samsung (South Korea), VISA (US), Tencent (China), Global Payments (US), Square (US), Amazon (US), Apple (US), Western Union Holdings (US), Comviva (India), and T- Mobile (US). These players have adopted various strategies to grow in the Mobile Money Market.