Moreover, by 2032, it will have reached a CAGR of 30 percent and will be worth $590 billion.
The mobile payments market is continuing its explosive growth, to the point that it is expected to reach a value of $42 billion by the close of this year. That will involve an astounding 30 percent CAGR that will bring it to $590 billion by the end of the next ten years as 2032 comes to a close.
Though device-based transactions have been popular in some markets, they were slow to take off in others.
The United States, for instance, saw a slow growth rate in its mobile payment market while it was taking off tremendously in many countries in Asia. However, contactless trends throughout the pandemic have been boosting the appeal of the use of technology to pay for goods and services instead of using cash or even credit cards that require the use of a pin pad that needs to be touched.
As near field communication (NFC) chips become more commonplaces in smartphones and smartwatches, among other devices, people have been able to use those gadgets to complete contactless transactions in a secure and hassle-free way.
The mobile payments market worldwide has seen accelerating growth that is expected to continue.
A recent einnews.com report pointed to a number of different factors beyond the pandemic that helped to contribute to the rise in popularity of this type of transaction method. It pointed to a new feature launched by PayPal that made it easier for consumers to be able to gift money to friends and family. That feature was just launched in January 2022.
Even before the pandemic, in 2018, Visa partnered with Allianz, launching Allianz Prime, an app allowing digital transactions with loyalty features. That company made it faster and easier for consumers to complete secure transactions under a familiar name.
A number of large wallet apps have also become popular both among consumers and among retailers and merchants. This has made it more commonplace for people to simply use their smartphones to tap and pay using NFC technology at the checkout counter of brick-and-mortar shops.
