The expanding use of contactless payments among a considerable chunk of the global populace coupled with the ongoing digitalization drive are estimated to emerge as crucial growth factors for the global mobile wallet market in the upcoming period. The rising prominence of point-of-sale (POS) mechanisms across a large number of regions in tandem with the rising digitalization prospects is expected to have a profound impact on the overall growth trajectory of the mobile wallet market. The emergence of a cashless economy mechanism among a large number of regions is a prominent reason for boosting the growth prospects of the mobile wallet market.
A mobile wallet can be described as a virtual wallet that stores information od gift cards, credit cards, debit cards, and loyalty cards. This wallet is saved in a form of an application in a smartphone. These wallets are safe, effective and convenient due to the ease of usage. Furthermore, the wallets make use of near field communication (NFC) technology for completing transactions. Instead of using a physical card for making purchases, mobile wallets can be used. All these factors play a major role in accelerating the growth opportunities across the mobile wallet market. \
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Various companies are investing extensively in research and development activities for finding novel methods to enhance the features in the mobile wallet applications. These activities help the players in expansion of their consumer base to a considerable extent. Furthermore, many startups are emerging across the mobile wallet space on a large scale. These factors help in adding value to the growth trajectory of the mobile wallet market. Strategic collaborations also play a vital role in strengthening the growth structure of the mobile wallet market. Acquisitions, mergers, joint ventures, and partnerships help in generating influence among untapped regions. These factors bode well for the growth of the mobile wallet market.
The rising disposable income, increased urbanization rate, and the growing aspects of standard of living among numerous countries are boosting the usage of mobile wallets. The emergence of smart cities and initiatives by the government bodies of numerous countries to encourage cashless transactions is proving to be a boon for the growth of the mobile wallet market. The Digital India initiative is a classic instance. This initiative by the government of India promotes the use of cashless facilities for transactions. Similar developments are ongoing across various countries. Therefore, these factors are expected to have a positive impact on the growth structure of the mobile wallet market.
Rising Popularity of Connected Cars to Bring Considerable Growth for Mobile Wallet Market
The emergence of connected cars is a crucial development for the growth prospects of the mobile wallet market. The players in the mobile wallet market are trying to integrate mobile wallets with connected cars. Connected cars are projected to hold expansive opportunities for business-to-consumer (B2C) and business-to-business (B2B) fields. In context of B2C usage, an integrated mobile wallet can be used for making transactions across toll plazas, parking space, and others. Like smartphones have become a channel for e-commerce marketplaces, connected cars could take a similar stand, connecting to gas stations, retailers, and others. Therefore, the integration of mobile wallets with connected cars will bring a change in the overall growth trajectory of the mobile wallet market.
COVID-19 Pandemic Boosts Concept of Cashless Transaction
The COVID-19 pandemic proved to be a game-changer for the mobile wallet market. The cashless transactions jumped extensively during the pandemic. The threat of catching the virus forced many individuals to opt for cashless payments. The trend of cashless payments is expected to continue at the same rate even after the pandemic subsides. Thus, these factors are estimated to bring profitable growth avenues for the mobile wallet market in the upcoming period.