Grand View Research is expecting to see major growth in the mobile payment market in the next few years. The firm predicts that the market will climb to $273.1 billion between 2021 and 2028, displaying a sterling CAGR of 31.8 percent for the entire forecast period.
Grand View attributed that growth to the rising ubiquity of smartphones, and the rising number of apps that support mobile purchases. For example, many transportation providers now allow people to pay for parking or buy a transit ticket directly through their phones.
The recent enthusiasm for contactless technology is similarly expected to push more people toward mobile payments. In that regard, Grand View argued that COVID-19 has had a positive impact on the mobile payments market, since pandemic lockdowns prompted more people to stay at home, and encouraged them to choose a contactless option when they did need to make payments in person.
The NFC and proximity payment segments are expected to exhibit the highest CAGRs during the forecast period, largely because NFC is the format that people tend to choose when making mobile payments in a store. The technology is popular with both merchants and consumers, and the B2C, retail, and e-commerce segments will grow at the fastest rates as more people use mobile tech for personal payments and more retailers offer support for the technology.
Mobile devices with biometric authentication technology will be another factor driving the market, since that technology will help make mobile payments safer. Grand View also expects to see more transactions completed through smart speakers, and credits tech giants like Amazon, Google, and Apple for helping to build that demand.
The Asia Pacific market accounted for the most mobile payment revenue in 2020. Grand View listed Alibaba, American Express, M-Pesa, PayPal, Samsung, and WeChat as some of the other key players in the mobile payments space. The firm has previously forecast a $236.1 billion digital payments market, while the GSMA has reported that mobile payment platforms processed $2.1 billion worth of transactions on a daily basis in 2020.