The TradingPlatforms.com says that by 2024, mobile wallets are set to become even more popular, making 1/3rd of all POS transactions worldwide; while Statista predicts that by 2024 the mobile payment would be $4 Trillion worth industry with nearly 1.8 billion users worldwide
The global shift towards a cashless society created a huge space for mobile wallets as a safer and more convenient way of managing money. However, the entire sector boomed amid the pandemic as people started questioning the safety of using banknotes for fear of transmitting the virus. According to data presented by TradingPlatforms.com, digital or mobile wallet payment was the most used point of sale payment method globally, with a 21.5 percent market share in 2020. By 2024, mobile wallets are set to become even more popular, making 1/3rd of all POS transactions worldwide.
Digital Transactions Rise
Over the last few years, mobile payment services provided hundreds of millions of people access to electronic transactions, especially in underbanked markets in Africa, Asia and Latin America. However, they also become very popular among tech-savvy consumers in developed countries.
The digital transformation of the global payments industry, fuelled by the COVID-19, led to the impressive growth of the entire mobile wallets market. Over the last two years, the transaction value of the entire sector doubled and is expected to hit nearly $2.5trn in 2021. The number of people using mobile wallets to make payments surged from around 900 million to 1.48 billion in this period.
In 2020, 25.7 of all POS payments were made using mobile wallets, revealed the Global Payments Report 2021. By 2024, this figure is expected to jump to 33.4 percent. The survey also revealed that mobile payments made 44.5 percent of all eCommerce transactions last year, two times more than credit cards and three times more than debit card payments.
Credit cards and debit cards are expected to hold the same market share in the next two years, making around 22 percent of POS payments each. However, cash transactions are set to witness a significant drop, falling from 20.5 percent in 2020 to 12.7 percent in 2024.
Mobile wallets is set to become $4 Trillion industry by 2024
The Statista data showed the mobile payments segment is forecast to continue booming in the following years, both in terms of users and transaction value. In 2021, 1.48 billion people worldwide are expected to use mobile payments services, producing a $2.48 Trillion transaction value. In the next three years, mobile wallets are set to become a $4 Trillion worth industry with nearly 1.8 billion users worldwide.
Generally, the mobile wallets market is dominated by Asian countries, spearheaded by China as the global leader. According to the Statista survey, the transaction value of the Chinese mobile payments market is forecast to reach $1.3 Trillion in 2021. By 2024, this figure is set to jump to over $1.8 Trillion or 45 percent of all mobile wallet payments globally.
Western countries are far behind in terms of usage, with many people still preferring cash, credit, and debit cards. The US ranks as the world’s second-largest mobile payments market, with $468 Billion worth of transactions or nearly three times less than China. However, statistics show the US market is set to witness impressive growth in the following years, with transaction value growing by 80 percent to $840.7bn in 2024.
The United Kingdom is the third-largest mobile wallets market globally, expected to reach $97.6 Billion transaction value in 2021, a 43 Percent increase in a year. By 2024, mobile POS payments in the country are expected to grow by another 92 Percent and hit a $187.7bn value.
Qaisar
