Over the past few years, banking and particularly payments have undergone considerable changes. How consumers practice payments today is almost nothing less than a virtual exchange, wherein numbers are shifting from one account to another. In this era of digitization, mobile payment technologies are on the rise and they are projected to stay here for long. According to a report by Transparency Market Research (TMR), the global market for mobile payment technology is poised to reach a valuation of US$1,773.17 bn by 2024 as compared to US$338.72 bn in 2015, progressing at a phenomenal CAGR of 20.5% from 2016 to 2024.
TMR’s lead analyst states that with the expanding and maturing contactless infrastructure, combined with growing adoption of advanced technologies such as near field communication (NFC) and mobile point-of-sale (m-POS), the market is estimated to gain significant momentum in the foreseeable future. Moreover, the proliferation of smart devices that can operate on mobile data and Wi-Fi are providing a fillip to the market.
Government Initiatives Encouraging the uptake of Mobile Payment Technologies
In developing regions such as Asia Pacific and the Middle East and Africa, governments are emphasizing on cashless economies, which is stimulating the adoption of mobile payment technologies among their populace. A strong case in point will be demonetization announced by the government of India in November 2016. Demonetization brought about a behavioral change in Indian consumers and compelled the majority of them to leapfrog to mobile payment. Industrial experts indicate that mobile wallet providers turned out to be the single largest beneficiary of this step taken by the government. Thus, such initiatives by governments across the globe are likely to have a positive impact on the growth of the market.
Key Growth Strategies by prominent players to stay relevant in the global mobile payment technology market
With the phenomenal pace of development of the global mobile payment technology market, numerous new players are investing in the market. A large number of retailers, telecos and mobile operators, and handset manufacturers are offering their own payment solutions or digital wallets in this prolific landscape. Some of the prominent players in the market are Visa Inc., MasterCard International Inc., Boku Inc., American Express Co., PayPal Inc., Bharti Airtel Ltd., Fortumo, AT & T Inc., Vodafone Ltd., Apple Inc., Google Inc., and Microsoft Corporation.
The market giants are allocating hefty funds for the development of cloud-based payment technologies. TMR observes that several market players are capitalizing the booming Internet of Things (IoT) technology to enhance their visibility in the market. To put this in perspective, in February 2017, Visa and IBM launched a new IoT platform that will allow developers to use mobile payment technology on any connected device.