Why is mobile payment technology a growing market?

By Puja Sharma

As per the Zion Market Research study, The global mobile payment technology market was worth around $40,289.8m in 2021 and is estimated to grow to about $235,347.8m by 2028, with a compound annual growth rate (CAGR) of approximately 34.2 percent over the forecast period. The report analyses the market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the mobile payment technology market.

 Overview

Mobile payment technology enables users to make payments from anywhere in the world at the touch of their fingertips and in this ever-growing fast-paced world, this will be a majorly lucrative factor propelling mobile payment technology market growth. However, security concerns and reluctance in adoption are expected to have a hindering effect on the global mobile payment technology market potential.

Technological proliferation across the world has increased substantially and this trend is projected to be a prominent one driving the mobile payment technology market growth over the forecast period. Increasing penetration of smartphones and rising internet infrastructure across the world will boost the mobile payment technology market potential through 2028.

Growth Dynamics

Increasing technological proliferation to boost smartphone payment technology market growth. Advancements in technology have transformed the world and this is also true with the technology trend which is gaining popularity due to the high penetration of smartphones on a global scale. Moreover, the increase in internet infrastructure, rapid urbanisation, and increasing demand for digitisation are some other factors that drive the mobile payment technology market growth over the forecast period. The global mobile payment technology market is segregated based on technology, type, end-use, location, and region.

By Technology, the market is divided into near field communication, direct phone billing, smartphone web payment, SMS, interactive voice response system, mobile app, and others. The smartphone web payment segment held a dominant stance in the market in 2021 and is expected to continue this dominance over the forecast period. The security and flexibility that this payment offers is what makes it a dominant segment and is the major factor that will help this segment maintain its significant market share despite the emergence of other advanced technologies.

By payment type, the mobile payment technology market is segmented into B2B, B2C, B2G, and others. The B2B segment will emerge as the leading segment in the market over the forecast period and will be accounting for a major market share of around 60% in the global mobile payment technology industry landscape by the end of 2028.

Regional Landscape

Asia Pacific region will lead the global mobile payment technology market in terms of revenue and volume share and this is expected to be majorly driven by the high proliferation of smartphones in this region and the increasing population that is adopting online payment solutions owing to rising technological proliferation. China and India which are leading markets in this region will be driven by rapid urbanization and digitization in these nations and emerge as high lucrative markets for mobile payment technology providers through the forecast period.

The market for smartphone payment technology in North America is also expected to provide highly beneficial opportunities for mobile payment technology providers owing to rising technology adoption and the presence of key smartphone payment technology companies in this region. The United States and Canada will be the leading markets for mobile payment technology over the forecast period in this region.

Key Finding

• As per the analysis shared by our research analyst, the Mobile Payment Technology Market is expected to grow annually at a CAGR of around 34.2% (2022-2028).
• Through the primary research, it was established that the market was valued at approximately $40,289.8m in 2021 and is projected to reach roughly $235,347.8m by 2028.
• Asia Pacific region will lead the global mobile payment technology market in terms of revenue and volume share and this is expected to be majorly driven by the high proliferation of smartphones in this region and the increasing population that is adopting online payment solutions owing to rising technological proliferation.
• The market for smartphone payment technology in North America is also expected to provide highly beneficial opportunities for mobile payment technology providers owing to rising technology adoption and the presence of key mobile payment technology companies in this region.