The global mobile money market is projected to grow from USD 3.4 billion in 2019 to USD 12 billion by 2024 at a Compound Annual Growth Rate (CAGR) of 28.7% from 2019 to 2024.
Government initiatives to promote cashless economy to drive the demand for mobile money market
Major factors driving the mobile money market include an increase in the number of mobile subscribers, government initiatives to promote cashless economies, and rise in the number of businesses with digital payment-based business models.
By transaction mode, the Point of Sale segment to account for a higher market share during the forecast period
The Point of Sale (PoS) solution includes services provided at the PoS and are extremely useful for the brick and mortar-based businesses. POS solutions include Near-Field Communication (NFC), Magnetic Secure Transmission (MST), and sound wave-based payments. NFC is a technology that enables simple, fast, and secure bidirectional communication between 2 electronic devices.
This short-range wireless technology helps access, communicate, and transfer data electronically and seamlessly between 2 NFC-enabled devices. The technology is referred to as an advancement of the Radio Frequency Identification (RFID) technology and is an enhancement in contactless card transactions and payments technology. One of the key advantage of sound waves-based payments is that they do not need any extra hardware, which makes it a suitable choice for developing regions.
By nature of payment, the Person to Person segment to hold the largest market size during the forecast period
Person to Person (P2P) mobile payments are payments between 2 individuals carried out using mobile devices. Individuals can use multiple transaction modes to carry out P2P transactions, such as Unified Payment Interface (UPI) payment mode bank transfer and Short Message Service (SMS) payment, among others. P2P payments are vastly used around the world.
This next-generation nature of payments helps financial institutes, such as banks to facilitate its customers with enhanced payment options to transfer and receive funds and remittances, pay bills, and make payments. P2P payment services provided by banks offer customers with heightened convenience as P2P services provide immediate withdrawal and deposit facilities and facilitate instant money transfers through any mobile device and Mobile Network Operator (MNO).
The stream revenue generated for supplementing P2P payments for banks and other stakeholders involved in the mobile money ecosystem are calculated through volume of transactions, processing fees, and commissions earned for each transaction. As many banks and third-party application providers now offer P2P payment options, the competition between P2P payment service providers is high. Healthy competition between P2P payment service providers is expected to boost the global P2P mobile money market in upcoming years.
By region, Asia-Pacific to grow at the highest CAGR during the forecast period
APAC is at the forefront of adopting mobile money owing to the increased smartphone penetration in this region that provides operators with an opportunity to launch advanced mobile wallet services. The rapid eCommerce adoption further contributes to the increased use of electronic payment mechanisms, including mobile money services. According to the report, The Mobile Economy Asia-Pacific 2019, published by Global System for Mobile Communication (GSMA), mobile technologies and services generated 5.3% of the total Gross Domestic Product (GDP) across APAC, in 2018.
The report further stated, at the end of 2018, 1.9 billion people across APAC were connected via mobile internet with the addition of 200 million new subscribers as compared to its earlier year. Additionally, according to the report, two-third of the new subscribers are expected to be from India and China by 2025. Hence, increasing mobile subscriptions and growing mobile technologies and services are factors driving the growth of mobile money market in APAC.
Key Topics Covered
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in the Global Mobile Money Market 4.2 Market, By Type of Payment, 2019 4.3 Market, By Nature of Payment, 2019 Vs. 2024 4.4 Market, By Application, 2019
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 188.8.131.52 Increase in the Number of Mobile Subscribers 184.108.40.206 Government Initiatives to Promote Cashless Economy Driving the Growth of the Market 220.127.116.11 Rise in the use of Digital Payment-Based Business Models By Organizations Driving the Global Market Growth 5.2.2 Restraints 18.104.22.168 Concerns Over Data Security 5.2.3 Opportunities 22.214.171.124 Increased Flexibility by Using Mobile Money to Attract More Business 126.96.36.199 Rising Number of NFC-Enabled Handset to Boost the Market in Coming Years 5.2.4 Challenges 188.8.131.52 Diversified Regulations and Policies Across Regions 184.108.40.206 Limited Network Coverage in Developing Regions 5.3 Regulatory Landscape 5.3.1 Anti-Money Laundering/Combating Financing of Terrorism 5.3.2 Payment Service Directives 5.3.3 Single Euro Payments Area 5.3.4 Consultative Group to Assist the Poor 5.3.5 Know Your Customer 5.3.6 Credit Card Accountability Responsibility and Disclosure Act 5.4 Use Cases 5.4.1 Use Case 1: Vodafone 5.4.2 Use Case 2: Google 5.4.3 Use Case 3: Gemalto 5.4.4 Use Case 4: Fiserv 5.4.5 Use Case 5: FIS
6 Mobile Money Market, By Transaction Mode 6.1 Introduction 6.2 Point of Sale 6.2.1 Increasing Adoption of Mobile Payment Methods By Brick and Mortar Businesses to Drive the Demand for Point of Sale Transaction Mode 6.3 Mobile Apps 6.3.1 Multiple Functionalities Provided By Mobile Apps to Drive the Growth of the Mobile Apps Segment 6.4 QR Codes 6.4.1 Easy-To-Use User Interface of QR-Based Application to Attract More Users to the QR-Based Payment System 6.5 Internet Payments 6.5.1 Increasing Promotion of Net Banking By Banks to Drive the Global Internet Payments Market 6.6 SMS and STK/USSD Payments 6.6.1 Increasing Traction of SMS-Based Payment System Among Businesses to Boost the Market of SMS and STK/USSD Payments 6.7 Direct Carrier Billing 6.7.1 Demand for Direct Carrier Billing to Grow Owing to the Increasing Demand for Digital Content From Mobile Users 6.8 Mobile Banking 6.8.1 Access to Various Banking Facilities Using Mobile Banking to Boost the Mobile Banking Segment in Upcoming Years
7 Market, By Nature of Payment 7.1 Introduction 7.2 Person to Person 7.2.1 Healthy Competition Between Person-To-Person Payment Service Providers to Boost the Global Market in Upcoming Years 7.3 Person to Business 7.3.1 Adoption of Digital Payment-Based Business Models By Vendors to Drive the Growth of Person-To-Business Mobile Payment Segment 7.4 Business to Person 7.4.1 Use of for Business-To-Person Payments for Salary Disbursements, Incentives, and Commission Payments to Boost Its Demand 7.5 Business to Business 7.5.1 Reliance of Businesses on Third Parties for Various Resources and Functionalities to Drive the Growth of Business-To-Business Mobile Payments
8 Mobile Money Market, By Application 8.1 Introduction 8.2 Money Transfers 8.2.1 High Real-Estate Costs and Large-Scale Migrations for Work From Developing to Developed Countries to Drive the Demand for Money Transfers 8.3 Bill Payments 8.3.1 Ease of E-Billing Payments to Fuel the Demand for Mobile Bill Payments 8.4 Airtime Transfers and Top-Ups 8.4.1 Increasing Number of Services Offered By Telecom Players to Drive the Airtime Transfers and Top-Ups Payments 8.5 Travel and Ticketing 8.5.1 Developing New Transportation Infrastructure in Many Countries to Drive the Demand for Travel and Ticketing Mobile Payments 8.6 Merchandise and Coupons 8.6.1 Rise of Ecommerce to Drive the Growth of the Merchandise and Coupons Segment
9 Market, By Type of Payment 9.1 Introduction 9.2 Remote Payments 9.2.1 Rise of Ecommerce and Third-Party Digital Payment Services to Drive the Demand for Remote Payments 9.3 Proximity Payments 9.3.1 Increasing Adoption of Mobile Payment Technologies By Brick and Mortar-Based Businesses to Drive the Demand for Proximity Payments
10 Mobile Money Market, By Region 10.1 Introduction 10.2 North America 10.3 Europe & Central Asia 10.4 Asia-Pacific 10.5 Middle East & Africa 10.6 Latin America