The global mobile wallet services market is expected to grow at a CAGR of 42% over the next five years due to the multiple functionalities they can offer both buyers as well as suppliers, according to the latest market intelligence report from Technavio.
“For buyers, it provides the unique advantage of storing money in secure and reliable digital accounts to make fast and smooth transactions across merchants and retailers in multiple industries,” said lead Technavio procurement expert Angad Singh. “For suppliers, it represents an opportunity to invest in a new channel for processing transactions and additional marketing, to target customers real-time with localized offers and discounts,” added Angad.
According to Technavio, mobile payment technologies such as NFC, HCE, BLE, and QR codes are penetrating the market with technology leaders such as Apple, Google, and Samsung spearheading development. Consumers need to perceive mobile payments as an easy and convenient mode of payment via the integration of the mobile banking and payment experiences.
Technavio noted that consumers are comfortable making financial transactions using mobile channels developed by trusted financial institutions such as banks. Converging these two into one seamless experience is crucial to bridge the gap and push consumers into making mobile payments online or at POS.
A fast, simple, and seamless mobile payment process can enhance brand reputation and differentiation in the market. Customers consider personalized user experiences on payment interfaces, fast and efficient check-outs, and multiple payment options (debit/credit cards, internet banking) as important features in mobile wallets. According to a 2016 market study on mobile commerce, approximately two billion mobile phone/tablet users are expected to make mobile commerce transactions globally by 2017.
Technavio said that with the aim of developing mobile wallets for purposes beyond payments, suppliers are expanding their mobile money portfolios from basic P2P money transfers and bill payments to services. They are strategically partnering with network operators and banks to provide localized and real-time offerings such as loyalty points, discounts, and ratings and reviews across popular retail, entertainment, and hospitality businesses.
