Considering the number of users, it is predicted that the market for mobile payment transactions will grow globally through 2020 at a CAGR of 23.2%. Although a small user base is anticipated for Eastern Europe, it is anticipated to grow quickly—by 29.1 percent—during the forecast period. In 2014. The biggest proportion of mobile payment system users was in APAC in 2014, and it is anticipated that this trend would continue through 2020, growing at a CAGR of 22%.
The market for mobile payment transaction services is primarily being driven by the proliferation of mobile devices and the rising use of mobile money services among financial institutions and other suppliers claims FMI. The FMI anticipates that during the forecast period, merchants and vendors will continue to upgrade their POS systems to support mobile payments.
Data security and privacy concerns, as well as a lack of customer knowledge, are significant obstacles that may limit the growth of the market for mobile money transaction services. According to FMI, the market growth for mobile payment transaction services will be moderately impacted by these factors.
The mobile payment transaction services industry has been divided into money transfer, goods purchase, airtime top-ups, bill payment, ticketing, and “others” based on significant applications.
Globally, the market for mobile payment transactions is projected to increase through 2020 at a CAGR of 23.2%, taking into account the number of users. Although just a small number of users are thought to be in Eastern Europe, this region is expected to increase at a rapid rate of 29.1% during the projected period. In 2014. In 2014, APAC had the highest percentage of mobile payment system users, and it is predicted that this trend will continue through 2020, expanding at a CAGR of 22%.
In 2014, the market for mobile payments was valued at US$ 392 billion, and by 2020, it is anticipated to reach US$ 2849 billion. Over the predicted period, growth will occur at a CAGR of 39.2%. The prevalence of mobile phones and their expanding feature sets replacing conventional wallets are primarily to blame for the expansion of the mobile payment sector. Furthermore, customers are becoming more accustomed to utilizing their cellphones for functions other than voice.
Technology-wise It is projected that WAP/WEB will account for more than 40% of the market, with SMS coming in second. However, through 2020, NFC communication is anticipated to develop at a rapid rate of about 46%.
The two most attractive regions for the market for mobile money transaction services are Africa and Asia-Pacific. These two regions together made up about 58% of the global market in 2014 in terms of value. These two regions will continue to dominate the worldwide market, according to FMI’s predictions.
Asia Pacific will surpass Africa to overtake it as the largest market, which is a significant milestone in the worldwide market for mobile money transaction services. By 2020, 27% of the income generated by the global mobile payment transaction service industry is expected to come from the Asia Pacific region, according to FMI.
North America is positioned to have the greatest growth of any of the continents. In terms of value, North America accounted for 22.8% of the global market in 2014, and by 2020, it is expected to reach 24.9%.
Asia Pacific and Africa will remain profitable regions in terms of transaction volume, although it is projected that North America and Western Europe’s rapid expansion will reduce their market share. On the other hand, projections indicate that by 2020, the combined market share of Latin America, the Middle East, and Eastern Europe will be 10.4%.
In FMI’s study report, PayPal, Visa, MasterCard, and Google Wallet are among the major corporations profiled. To strengthen their position in this quickly developing sector, many businesses are forming partnerships with top vendors.