As countries are making a conscious shift towards cashless societies, mobile payments are expected to be an alternate digital payments solution for consumers. Majority of the population already has access to internet and mobile phones, therefore mobile payments have the potential to reach people with diverse backgrounds, such as the older generation and the rural population.
Asia-Pacific (APAC) is expected to continue to lead the world in mobile payment developments. Across the region, payments infrastructures are being built, regulations are being drafted, and partnerships are being encouraged. This will greatly increase the security and convenience of mobile payments security, leading to a higher adoption rate of mobile payments.
The mobile payments landscape differs by countries but a general comparison can be made between developed countries and developing countries. Mobile payments growth is faster in developing countries because of the active participation from both the government and the industry. In developed countries, the market is more industry-led, thus the growth highly emphasizes on profit for the market participants.
Multiple mobile payments providers are competing for market share across different countries. It is important for mobile payments providers to take into account the differences in government regulations, payments infrastructure, and consumers’ behavior in different countries. These factors will affect the effectiveness of a business model in increasing and retaining its user base.
The security aspect of mobile payments will continue to be a major area of concern. Mobile payments carry sensitive data over the Internet; therefore providers need to assure consumers that the platform is secure and trustworthy.
This study also briefly analyzes the growth opportunities in other markets, such as online payments, cross-border payments, and B2B mobile payments. With the advancement in technology, such as 5G and ISO20022, the market will be able to provide an innovative solution to address the problems and meet the demands in these markets.
This study is based on extensive secondary research. Companies mentioned in this study include but are not limited to AirPay, Ali Pay, ANZ goMoney, Apple Pay, Beem It, Boost, CIMB Pay, D-barai, DANA, Fave Pay, GoMobile, Google Pay, Go-Pay, Grab Pay, iSaku, Jenius, Kakao Pay, LG Pay, LINE Pay, LinkAja, Maybank Pay, Merpay, Mobikwik, Moca, MoMo, Naver Pay, NextPay, NHN Payco, Origami Pay, OVO, Payoo, PayPay, Paytm, PhonePe, PixivPay, Rakuten Pay, Sakuku, Samsung Pay, Starbucks, Touch ‘n Go, Toss, TrueMoney, vCash, Venmo, ViettelPay, WeChat Pay, ZaloPay, and Zelle.
Countries covered include Australia, China, India, Malaysia, Indonesia, Thailand, Singapore, Vietnam, South Korea, Japan, New Zealand, Philippines, and the United States (as a reference for APAC).