The mobile payments market will see explosive growth in the Asia Pacific region, according to a new report from Frost & Sullivan.
The growth consultancy firm predicts that the market will grow from $71.92 billion now to $271.47 billion by 2021, thanks in large part to a “top down regulatory push toward cashless societies”, according to a report synopsis. By the end of the forecast period, there will be about 130.8 million active users.
The APAC region will thus lead the world in mPayment adoption, largely because of its already high smartphone penetration. Looking to specific countries, Japan and South Korea currently account for 89.2 percent of the region’s market revenue, and will continue to lead it along with Australia and Singapore.
One challenge that mPayment operators will need to overcome is coming to grips with national preferences, with Frost & Sullivan Digital Transformation Industry Principal Analyst Quah Mei Lee noting that “in Indonesia and the Philippines, telcos lead with their e-money products whereas in Japan, South Korea and Australia, credit card is the key payment method.” But across the region generally, security solutions like tokenization and biometrics are helping to reassure consumers that mPayments are a safe and appealing option—a suggestion that echoes other recent market research on mPayment adoption.