Asia-Pacific Mobile Wallet Market Flourishing at Robust CAGR 15.6
Asia-Pacific mobile wallet market size is expanding at an impressive growth rate owing to increasing smartphone and internet usage in the region, expanding e-commerce industry, and enticing discounts and cashback offers.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects the Asia-Pacific Mobile Wallet Market size to grow at a robust CAGR of 15.6% during the forecast period between 2022 and 2028. Major growth drivers for the expansion of Asia-Pacific mobile wallet market include deepening penetration of smartphones and internet, surging e-commerce industry, and attractive discounts and cashback offers. The increasing adoption of smartphones has resulted in a fundamental shift in how users perform their monetary operations because of cost-effectiveness and accessibility. Consumers are ordering vital commodities, such as food and clothing, among several other things, through e-commerce websites. Most choose to pay digitally rather than using traditional debit or credit cards. As a result, Asia-Pacific mobile wallet market is expected to grow during the forecast period. However, risk of data security and the absence of a well-defined regulatory framework could limit the expansion of Asia-Pacific mobile wallet market.
Asia-Pacific Mobile Wallet Market – Overview
A mobile wallet is an e-wallet that allows users to make payments quickly and securely using a credit/debit card or bank account for cellphone recharges, bill payments, movie/ travel reservations, and others. The increase in smartphone usage and internet penetration is pushing the use of mobile wallets in the APAC region. Furthermore, smartphone technology advancements have enabled Point of Sale (PoS) at retail terminals and end-user transfer, boosting global industry growth. For instance, Tencent, a China-based leading provider of mobile payments, has experienced rapid development and moved into other Asian nations, including Thailand, where it is looking for significant partners to help adopt its services.
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Increasing use of internet, smartphones, and e-commerce sites
APAC region’s mobile market is driven by an increase in number of smartphone users and deepening internet penetration because of advancements in the region’s network infrastructure. Therefore, various smart devices have been widely adopted. The e-commerce sector is experiencing a surge in demand as consumers order vital commodities, such as food and clothing, among other things, through e-commerce websites. Hence, most pay digitally instead of using traditional debit or credit cards because of convenience. This, in turn, will continue to fuel the growth of Asia-Pacific mobile wallet market. NFC technology provides the e-commerce industry to collect data about their customers and reward them with promotions, including discounts and cashback, to enhance relations with existing consumers, build ties with new ones and increase operational efficiency.
Challenge: Poor internet connectivity and data security concerns
With the increasing number of internet users in APAC countries, a large section of the population, especially in rural APAC areas have no access to the Internet. Thus, many small towns and villages have shown a slow adoption rate due to poor internet connectivity or a reluctance to move on from traditional processes. The large rural-urban gap in access to the internet will directly affect the use of mobile wallets in the region, affecting the growth of mobile wallet market. The security risk associated with mobile wallets is another factor that is restricting the growth of Asia-Pacific mobile wallet market. Mobile wallets include sensitive information such as credit/debit card details that carries the risk of cyberattacks.
Impact of COVID 19 on Asia-Pacific Mobile Wallet Market
The APAC region was adversely affected by Covid-19 pandemic. From restricted movement to a downfall in demand from farmers to the closing of production units, countries in APAC countries were affected by the COVID-19 pandemic. Due to lockdowns, the region has also experienced less availability of labor resources and trading, resulting in not as significant demand from major markets. However, Asia-Pacific mobile wallet market witnessed tremendous growth amid the sudden outbreak of the COVID-19 pandemic in 2020. Increasing incidences of COVID-19 in the region led consumers to make payments via mobile wallets instead of using cash. These cashless and contactless transactions are aligned with social-distancing norms that prevent community transmission of the virus. For instance, it was reported that India digital payment platforms, such as PhonePe, Amazon Pay, Google Pay, and Paytm, saw a 50% increase in transactions through their digital wallets since the start of the COVID-19 pandemic. As relaxations of Covid-19 related restrictions are in place, Asia-Pacific mobile wallet market is expected to maintain its robust growth due to its favorable features.
Prominent players in Asia-Pacific mobile wallet market include Amazon.com, Inc., American Express Company, Ant Financial Services Group, Google LLC, ICICI Bank Limited, MasterCard Incorporated, One Mobikwik System Pvt Ltd., One97 Communications Limited, PayPal Holdings Inc., Samsung Electronics Co. Ltd, Tencent Holdings Limited, and Visa Inc. These major companies employ various strategies, such as new product and service launches, collaborations, partnerships, and mergers and acquisitions, to further strengthen their competitive position in Asia-Pacific mobile wallet market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Asia-Pacific Mobile Wallet Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Asia-Pacific Mobile Wallet Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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