Easy access to a range of goods even from remote locations, providing consumers with convenient payment services has to lead to increased mobile phone wallet adoption, reports Valuates Reports. This trend is expected to increase further during the forecast period, adds the research group.
The mobile wallet market size was valued at US$1 billion in 2019, and is projected to reach $7.6 billion by 2027, growing at a compound annual growth rate of 28.2% from 2020 to 2027.
Growing awareness of mobile wallets and their applications, rising smartphone penetration and high affordability, are expected to drive the growth of mobile wallet market size, says Valuates Reports. The rise of various e-commerce platforms is driving the growth of the mobile wallet market size.
The ways consumers pay for their goods have changed with the advent of e-commerce and Internet penetration across the globe. Consumers are more inclined to purchase products easily from their home. This need for simplicity and the ability to purchase from anywhere is encouraging the use of mobile wallets.
Valuates Reports says growing smartphone penetration is predicted to be one of the major drivers for the growth of the mobile wallet market size. As smartphone adoption increases, the trend towards the use of financial services on mobile devices is also gaining momentum due to convenience and cost-effectiveness. This encourages financial institutions and technology players to cater to mobile applications to provide payment services.
The current generation of people is more tech-savvy and accustomed to digital platforms offered by various technology players. This changing customer preferences are encouraging tech players to launch their mobile wallet product offerings, notes Valuates Reports.
The growing preference of mobile wallet over a traditional banking system or physical cash is fueling the growth of the mobile wallet market size.
Due to the recent COVID-19 outbreak has forced customers to stay home, thereby increasing their online shopping activities. This factor will increase the mobile wallet market size during the forecast period, Valuates Reports concludes.