Mobile payment transactions in Western Europe will grow from €52 billion in 2016 to €148 billion by 2021 — a CAGR rate of 23% over the next five years, according to the latest mobile payments forecast estimates from Forrester Research, a leading marker research firm.
Meanwhile, mobile in-person payments, or proximity mobile payments, will grow fastest, increasing almost fivefold to be 15% of the total market value by 2021, said Forrester. The proliferation of mobile devices capable of in-person mobile payments and the popularity of contactless payments are the two main reasons for the growth.
Here are some other key takeaways:
- By 2021, European mobile payments will be just over half the value of those in the US, but mobile payment use will grow faster.
- Consumers say that they trust PayPal the most to provide a mobile digital wallet.
- Mobile payments in 2016 accounted for just 3% of the €1.62 trillion in retail payments in the EU-7 countries. -
- Despite healthy growth rates, mobile payments will remain a small fraction of overall European retail payments as existing payment habits will remain stubbornly entrenched.
To support the growth, an European mobile payments processor iZettle has raised €60 million ($63.3 million) in equity funding, earlier this year from existing investors.The company targets small to medium-sized businesses with easy-to-use hardware and software, including a physical bank card reader and an app that allows merchants to accept card payments from customers through mobile devices.
