August 2024
M-commerce Payment Market (By Payment Method: Mobile Web Payments, Near-field Communication, SMS/Direct Carrier Billing, Others; By Transaction Type: M-retailing, M-ticketing, M-billing, Others; By Application: Personal, 18 to 30 Year, 31 to 54 Year, 55 to 73 Year, Business) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global M-commerce payment market size was USD 11.71 billion in 2023, calculated at USD 13.65 billion in 2024 and is expected to reach around USD 54.07 billion by 2033, expanding at a CAGR of 16.53% from 2024 to 2033. growth in developments & initiatives toward digitalized payments is anticipated to provide a potential growth opportunity for the market.
Mobile commerce (m-commerce) refers to electronic sales and transactions conducted through mobile devices such as smartphones. This involves the buying and selling of goods and services, allowing consumers to make payments conveniently from anywhere at any time. The rise in mobile dominance and reliance has led to the development of m-commerce payment applications, significantly enhancing the consumer shopping experience. With advancements in mobile technology, the number of mobile device users has surged, which results in a substantial increase in m-commerce transactions.
One prominent instance of M-commerce payment’s significant share is its widespread use in app stores such as Google Play and Apple App Store. Consumers frequently use carrier billing to purchase apps, games, in-app content, and subscriptions. For example, Google Play has partnered with numerous carriers worldwide to offer M-billing as a payment option, contributing to its popularity.
Report Coverage | Details |
Market Size by 2033 | USD 54.07 Billion |
Market Size in 2023 | USD 11.71 Billion |
Market Size in 2024 | USD 13.65 Billion |
Market Growth Rate from 2024 to 2033 | CAGR of 16.53% |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | Payment Method, Transaction Type, Application, and Regions |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Improved mobile payment solutions
The increasing inclination of customers towards mobile purchasing has led to a critical need for safe, effective, and intuitive payment methods. The industry is expanding as a result of advancements and developments in mobile payment systems. The pillars of contemporary mobile commerce are increasingly being formed by contactless payment systems, digital payment platforms, and mobile wallets. Additionally, these technologies give consumers safe and practical options to make purchases using their smartphones. People's confidence and trust in these payment options promote increased usage of mobile commerce.
Rise in data breaches and security concerns in mobile payments
Customers can profit greatly from innovative payment technologies in terms of convenience, but industry expansion is hampered by the increase in security concerns and data breaches. Because they worry that their financial information could be accessed by unaffiliated mobile service providers, consumers are hesitant to send or receive money using their phones. These elements restrict market expansion and significantly increase the dangers associated with making mobile payments. Thereby, data breaches and other associated risks act as a restraint for the M-commerce payment market.
Integration of advanced technologies
The integration of advanced technologies such as blockchain and biometrics aims to enhance the security and efficiency of mobile transactions. Moreover, the growth of subscription-based models and in-app purchases creates opportunities for manufacturers to develop customized payment solutions that support recurring billing and provide seamless user experiences. Furthermore, forming strategic partnerships with e-commerce platforms and mobile app developers can unlock new distribution channels and reach additional customer segments.
The mobile web payments segment dominated the M-commerce payment market in 2023. This is because Mobile payments utilize the wireless application protocol (WAP) on smartphones to connect to the internet and facilitate payments for goods and services through online methods such as mobile wallets. The ease of use and convenience of WAP payments are expected to drive their popularity in the coming years as more people turn to online shopping.
The near-field communication segment shows the fastest growth over the forecast period. With NFC technology, a mobile device can be brought close to a payment terminal or tapped to initiate contactless transactions. Peer-to-peer payments, public transit, and mobile payments in physical retail establishments all frequently employ this technique. Many people and businesses choose NFC because of its speed, ease, and security, which helps the industry expand.
The M-retailing segment dominated the M-commerce payment market in 2023, by holding largest market share. To provide a tailored experience, retail businesses generally use proximity mobile payments through their preferred mobile wallet or app. Retailer point-of-sale (POS) counters also prominently show logos for mobile payments. The industry is growing as a result of e-commerce industries becoming more digitally advanced and mobile e-commerce stores becoming accessible.
The M-billing segment is observed to grow at the fastest rate during the forecast period. M-billing simplifies the payment process for consumers by eliminating the need to enter credit card details or create additional accounts. Users can make purchases with a few taps on their mobile devices, enhancing the user experience and reducing transaction friction. M-billing is accessible to a broader audience, including those who do not have bank accounts or credit cards. This inclusivity is particularly important in regions with lower banking penetration but high mobile phone usage.
The business segment held a significant share of the M-commerce payment market in 2023. Businesses increasingly adopt mobile payment solutions to enhance customer experience by providing convenient, quick, and seamless payment options. This adoption drives significant transactions through mobile commerce (M-commerce) platforms. Mobile payments streamline the checkout process, reducing cart abandonment rates and boosting sales. Businesses recognize this benefit and invest in M-commerce technologies to retain customers and encourage repeat purchases.
Asia Pacific dominated the M-commerce payment market in 2023, the region is observed to grow at the fastest rate mobile payments are experiencing substantial growth in the Asia-Pacific region, driven by the rise of mobile commerce. Countries such as Australia and Singapore are moving towards becoming cashless markets, which can further boost mobile payment adoption. In India, the increase in mobile payments is due to the growing youth population engaged in online media. Service providers like Paytm, Mobi Kwik, and Google Wallet are expanding into emerging Asia-Pacific markets, by offering special discounts to capitalize on the region's potential.
Governments in countries like India (with the Digital India initiative) and China have actively promoted digital payments. Policies and incentives to reduce cash transactions have propelled the adoption of m-commerce payments. Asia has a large, young, and tech-savvy population that is more open to adopting new technologies, including mobile payments.
North America is observed to grow at the fastest pace in the M-commerce payment market during the forecast period. In North America, the M-commerce payment market is robust due to the trend towards integrated omnichannel shopping experiences. Moreover, growing awareness of mobile payment and its role in facilitating secure and convenient transactions. significantly drives market growth in this region. Retailers are integrating their online and offline operations, providing click-and-collect services, and upgrading in-store technology to meet changing customer preferences. significantly drives market growth in this region.
Europe is observed to grow at a notable rate in the M-commerce payment market. Europe has one of the highest smartphone penetration rates globally. The widespread use of smartphones facilitates mobile commerce (m-commerce) and mobile payments, making it easier for consumers to engage in m-commerce activities. European countries have well-developed mobile network infrastructures, ensuring fast and reliable internet connectivity. This infrastructure supports seamless m-commerce transactions, encouraging more consumers to use mobile payment solutions.
Segments covered in the report
By Payment Method
By Transaction Type
By Application
By Geography
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
August 2024
August 2024
September 2023
June 2024