The Growth & Future of Mobile Payments

Jan 5, 2022 #mobile payments

Introduction

Even as global lockdown restrictions have loosened, the Covid-19 pandemic fueled a boom in the amount and value of mobile payments made via digital wallets, laying the groundwork for their continued development. As more people feel comfortable using their smartphones to pay for products and services, this trend should promote growth in other mobile payment methods like QR codes and carrier billing.

The growing proportion of m-commerce transactions

Global mCommerce revenues reached nearly USD 1.1 trillion in 2021, with digital wallets responsible for nearly half (46%) of total revenues. Physical retail locations, which use NFC, QR codes, and barcodes to connect, have a similar story. By 2024 it is expected that cash will account for less than 10% of in-store payments in the US and 13% of global payments, according to Capgemini’s 2022 Top Trends in Payments Report.

Mobile payment benefits are highlighted by digital wallets.

Mobile payment transaction volumes will nearly double from 26 billion in 2021 to 49 billion in 2023, according to Juniper Research. They’ve become a mainstay of online and in-store transactions, thanks to lower-cost smartphones with contactless technologies like NFC and faster, more dependable Internet connectivity. Enhanced security and more cross-channel payment capabilities were cited as significant growth drivers in the company’s Contactless Payments: Trends, Opportunities, and Market Forecasts 2021-2026 research.

Cadoo, the mobile messaging gurus, touches on the topic of The Growth & Future of Mobile Payments in greater depth in the infographic below. Learn where mobile payments grew from, where they are today and where they will be heading in the future as well as the advantages of a cashless society and the top mobile payments apps out there.