Global Mobile Payment Market to Grow at a CAGR of 29.5%, Report Shows
The global market for mobile payments is predicted to grow by nearly 30% over the next 8 years. Mobile payment systems have been around for well over a decade and a half, but they didn’t truly become mainstream in the West until the coronavirus pandemic hit. Lockdowns and isolation orders forced tens of millions of people to avoid physical currency in favor of contactless payments.
Plenty of consumers continued using mobile payment systems even after the pandemic ended due to the ease of use and the convenience they offer. The prolific use of online shopping platforms has also contributed to the increasing popularity of virtual payment services. Consequently, experts project that the fledgling mobile payment market will see a compound annual growth rate (CAGR) of 29.5% and reach $736.8 billion in value by 2033.
Unsurprisingly, the mobile money market owes much of its growth to consistent tech innovations as well as the proliferation of mobile phones. Biometric authentication, blockchain-based systems, artificial intelligence-powered security measures, and near-field communication (NFC) are some of the measures that have enhanced the convenience, security, and efficiency of digital payments.
Mobile money enables extremely streamlined online shopping processes, helps customers lower transaction times, and boosts their overall shopping experiences. Digital payment services like Alipay, PayPal, Google Pay, and Apple Pay are some of the platforms that have enjoyed significant growth in recent years as customers adopt contactless transactions.
In addition to e-commerce encouraging mobile money adoption, government policies in countries such as Sweden, China, and India have boosted the use of digital wallets. Widespread mobile phone penetration has also made it easy for hundreds of millions of people across the globe to access digital wallets with ease, contributing to the market’s growth.
Emerging markets have also seen a rise in mobile payments as the number of smartphone users in these countries has increased. The proliferation of mobile phones also coincided with the surge in e-commerce, laying the groundwork for digital wallets to become one of the most common ways of paying for goods and services online.
However, mobile money still has a lot of challenges to overcome. Providers should do their best to ensure digital wallets are safe and secure from cyber threats, especially as the number of users increases over the next decade. Additionally, mobile money will have to overcome the digital divides and financial illiteracy that hold back the adoption of digital wallets.
The patchwork of different national regulations that govern mobile money also make it difficult for transnational operators to conduct business. Compliance with all these policies will be key to ensuring mobile money achieves full market penetration across different countries.
Companies like FingerMotion Inc. (NASDAQ: FNGR) that have interests in the mobile payments space of countries like China need to position themselves appropriately so that they can claim a significant share of the projected growth that this market is expected to experience over the coming decade.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
The global market for mobile payments is predicted to grow by nearly 30% over the next 8 years. Mobile payment systems have been around for well over a decade and a half, but they didn’t truly become mainstream in the West until the coronavirus pandemic hit. Lockdowns and isolation orders forced tens of millions of people to avoid physical currency in favor of contactless payments.
Plenty of consumers continued using mobile payment systems even after the pandemic ended due to the ease of use and the convenience they offer. The prolific use of online shopping platforms has also contributed to the increasing popularity of virtual payment services. Consequently, experts project that the fledgling mobile payment market will see a compound annual growth rate (CAGR) of 29.5% and reach $736.8 billion in value by 2033.
Unsurprisingly, the mobile money market owes much of its growth to consistent tech innovations as well as the proliferation of mobile phones. Biometric authentication, blockchain-based systems, artificial intelligence-powered security measures, and near-field communication (NFC) are some of the measures that have enhanced the convenience, security, and efficiency of digital payments.
Mobile money enables extremely streamlined online shopping processes, helps customers lower transaction times, and boosts their overall shopping experiences. Digital payment services like Alipay, PayPal, Google Pay, and Apple Pay are some of the platforms that have enjoyed significant growth in recent years as customers adopt contactless transactions.
In addition to e-commerce encouraging mobile money adoption, government policies in countries such as Sweden, China, and India have boosted the use of digital wallets. Widespread mobile phone penetration has also made it easy for hundreds of millions of people across the globe to access digital wallets with ease, contributing to the market’s growth.
Emerging markets have also seen a rise in mobile payments as the number of smartphone users in these countries has increased. The proliferation of mobile phones also coincided with the surge in e-commerce, laying the groundwork for digital wallets to become one of the most common ways of paying for goods and services online.
However, mobile money still has a lot of challenges to overcome. Providers should do their best to ensure digital wallets are safe and secure from cyber threats, especially as the number of users increases over the next decade. Additionally, mobile money will have to overcome the digital divides and financial illiteracy that hold back the adoption of digital wallets.
The patchwork of different national regulations that govern mobile money also make it difficult for transnational operators to conduct business. Compliance with all these policies will be key to ensuring mobile money achieves full market penetration across different countries.
Companies like FingerMotion Inc. (NASDAQ: FNGR) that have interests in the mobile payments space of countries like China need to position themselves appropriately so that they can claim a significant share of the projected growth that this market is expected to experience over the coming decade.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
Please see full terms of use and disclaimers on the ChineseWire website applicable to all content provided by CW, wherever published or re-published: https://www.ChineseWire.com/Disclaimer
