Asia Pacific Mobile Wallet Market size exceeded USD 60 billion in 2019 and is predicted to observe around 16% growth rate between 2020 and 2026. In 2019, mobile payment transactions in Asia Pacific region amounted for USD 90 billion in volume and over USD 7 trillion in value.
The Asia Pacific mobile wallet market is expected to gain substantially in the coming years as banks in the region are adopting an omnichannel strategy to meet varying customer needs. Mobile banking channels have strong penetration in the region including individual and corporate customers. Customers from countries including China, Singapore, South Korea, and India are the world’s heaviest users of these digital channels. The widespread adoption of mobile technology in these emerging markets offers banks and fintech players a new way to reach unbanked & underserved customers in remote areas with mobile banking solutions.
Semi-closed mobile wallet market is predicted to grow at a CAGR of over 15% during the forecast timespan. The influx of various technology players in the fintech landscape is driving the growth of semi-closed mobile wallets. Furthermore, changing customer preferences are encouraging tech players to launch semi-closed mobile wallet product offerings.
In the ownership segment, telecom operators are anticipated to register a steady growth rate of nearly 20% from 2020 to 2026. In the emerging markets, mobile network providers have been successful in providing banking services without a banking infrastructure of their own. In the developed regions, they focus on NFC-based mobile proximity payments.
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The high level of encryption is promoting the use of NFC technology among mobile wallets with an expected growth of 20% till 2026. NFC-enabled mobile wallets have an additional layer of security, which prevents the data from being intercepted when it is being transferred. It employs message authentication safeguards and establishes a secure channel of communication between the POS and end-user devices. Furthermore, its security features can be modified according to company requirements.
The China mobile wallet market is expected to gather considerable gains of more than 15% through 2026. The emergence of mobile payments has brought about a change in the shopping habits of Chinese online consumers. Mobile payment is increasingly becoming popular due to e-commerce and mobile internet penetration. Following these trends, large players in the Internet field, such as Alibaba, Tencent, and Baidu, have entered the Fintech services sector with their mobile wallet solutions.
Some of the leading vendors operating in the 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.
Industry players are continuously adding innovative features into their mobile wallet offerings along with expanding product functionalities. For instance, in October 2019, Ingenico Group launched a comprehensive suite of payment solutions specifically designed for Chinese payments. Previously, the company had partnered with Alipay, China UnionPay, and WeChat Pay to enable international payment support. The company launched integrated solutions that combine Chinese payment gateways and enable merchants to ensure international business processes.