Europe Mobile Wallet Market is estimated to be over USD 17 billion in 2019 and is expected to register a lucrative growth between 2020 and 2026 with a CAGR of over 16%. In 2019, the Europe mobile payment transactions amounted to nearly nine billion in volume and USD 200 billion in value.
Europe Market, By Type
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The profound market growth is attributed to the spike in the adoption of contactless payment methods in the region. Mobile wallet services are witnessing a spike in adoption as online shopping and m-commerce activities continue to witness an upward spike. Mobile wallets are increasingly being used by modern consumers for online shopping as global e-commerce has evolved. Customers demand secure payment from the convenience of their smartphones. This ever-growing need for hassle-free instant payments has accentuated the market growth.
The open mobile wallet market is expected to grow at over 15% CAGR by 2026 due to increasing investments by banking and telecom sectors to develop open mobile wallets. The banking industry is experiencing a continual change due to widespread digitalization and introduction of innovative product offerings. Traditional banks are facing stiff competition from upcoming new Fintech startups and are increasingly focusing on the integration of mobile technologies to facilitate payments and increase customer retention.
The device manufacturers segment is anticipated to register a steady growth rate of nearly 20% from 2020 to 2026. This is attributed to the rising penetration of smartphones across the region. For instance, in 2019, the cumulative number of smartphone users in France, Germany, and Italy exceeded 150 million. It is estimated that by 2025, smartphones will account for nearly 80% of all internet-connected devices. Smartphone device manufacturers are introducing wallet applications to capitalize on market opportunities and gain an edge over their competitors.
The UK held over 20% of the total market share in 2019. With the increasing number of people becoming aware of digital-only banks and their range of services designed to make banking easier and more transparent, traditional banks in the UK are trying to replicate their offerings. This has encouraged mobile wallet providers in the country and traditional banking institutions to roll out their own mobile wallets. Over time, users in the UK have developed confidence in mobile payment system, and the use of physical cash is experiencing a significant reduction.
The Europe market has witnessed several strategic alliances between key players to launch new products with robust functionalities and garner a wider customer base. For instance, in March 2020, TransferWise partnered with Alipay to introduce international mobile payments via mobile wallet. The new feature allows TransferWise’s users to make payments in Chinese yuan to Alipay users from 17 currencies supported by TransferWise mobile wallet.
Some of the leading companies operating in the Europe market include Amazon.com, Inc., American Express Company, Ant Financial Services Group, Allied Wallet, Inc., Apple Inc., AT&T Inc., Barclays plc, Due Inc., First Data Corporation, Google LLC, J.P. Morgan Chase & Co., Mastercard Incorporated, PayPal Holdings, Inc., Samsung Electronics Co., Ltd., Skrill Ltd., Tencent Holdings Limited., Visa Inc., Vodafone Group PLC, and Wells Fargo & Company.