The mobile wallet market is projected to showcase notable growth by 2027 owing to increasing consumer demand for convenient methods of digital payment. In addition, growing prominence of digital transactions for various applications, including e-commerce, is calculated to further propel market growth through the forecast period.
A mobile wallet refers to a virtual wallet that stores debit and credit card numbers, coupons, and reward cards, among others, and allows a user to conduct transactions on a digital device, such as a smartphone, tablet, or computer, without requiring the physical card. Following the COVID-19 outbreak, there was a proliferation in the usage of digital modes of payment in order to promote contactless transactions for curbing the spread of the novel coronavirus, which has bolstered product uptake during the pandemic.
Moreover, industry players have been implementing lucrative strategies to cater to emerging consumer demands in the sector, thereby boosting industry expansion. For instance, in September 2021, tech behemoth Apple announced its plans to bring verifiable COVID-19 vaccination cards to the Apple Wallet under the future software update for its iPhone.
Apple added that this novel feature would leverage the international SMART Health Cards standard, which are presently used in multiple states, to show proof of vaccination, signing it using a private key and creating a public key for the verification of users' personal information.
For comprehensive analysis, the mobile wallet market has been segmented in terms of type, ownership, technology, and region. Based on ownership, the market has further been categorized into telcos, banks, tech companies, and device.
The device sub-segment held a market share of over 10% in 2020 and is anticipated to grow at a robust pace over 2021-2027. Mounting focus on the development of digital wallets by smartphone manufacturers is speculated to fuel the growth of the segment in the coming years.
In terms of technology, the mobile wallet market has been segregated into optical/QR code, NFC, text based, and digital only. The text based sub-segment is estimated to exhibit notable growth by 2027, growing at a CAGR of more than 5% through the study timeline. Surging demand for peer to peer (P2P) fund transfer is set to drive segmental expansion over the following years.
In the regional landscape, the Latin America mobile wallet market contributed to a sizable portion of the overall industry revenue and is calculated to progress at around 20% CAGR over the review period. Growing smartphone adoption in LATAM is foreseen to facilitate regional market growth in the upcoming years.
Meanwhile, the Middle East & Africa mobile wallet market is expected to garner a considerable valuation by 2027, expanding at approximately 15% CAGR through the forecast timeline. Escalating emphasis on cashless banking services across MEA is likely to foster regional market outlook in the future.