A report released last week by Allied Market Research revealed that the global mobile wallet is expected to grow by 128 percent to reach $5.25 billion by 2020—the result of increasing smartphone use, increased security and booming popularity.
“The mobile wallet market is witnessing growth globally with increasing adoption of mobile payment services,” state analysts Lita Person and Saurabh Saxena said. “Asia Pacific is expected to be the fastest growing region for the mobile wallet market, during the forecast period followed by [Europe, the Middle East and Asia]. The lack of regulations and monitoring for mobile enabled payments in African countries has triggered the mobile wallet market growth in the region, whereas reluctance of merchants in Asia Pacific countries such as India, temporarily has hold the growth, which in turn will prompt the much faster adoption in future.”
Mobile wallets allow consumers to store their credit card information to make purchases and pay bills without the need for physical cards. Mobile wallets can be grouped into two types: remote and NFC. Remote wallets can be used online and from an off-site location, while NFC mobile wallets can be used when close to a register or a point of access.