According to the Graphical Research new growth forecast report titled “Europe Mobile Wallet Market Size, By Type (Open, Semi-closed, Closed), By Ownership (Banks, Telecom Operators, Device Manufacturers, Tech Companies), By Technology (Near Field Communication (NFC), Optical/QR Code, Digital Only, Text-based)”, Estimated To Exceed USD 60 Billion By 2026
The mobile wallet transaction volume in the region is expected to exceed 20 billion by 2026, with transactional value surpassing USD 500 billion.
The Europe mobile wallet market growth is attributed to the digital disruption and generational shifts in customer behavior as millennials are embracing digital payments and avoiding physical bank branches or ATMs. The mobile wallet industry is witnessing a significant market disruption with the increasing availability of VoLTE and the rapid proliferation of inexpensive smartphones. It is estimated that by 2025, smartphones will account for over 77% of the internet-connected devices. Technology players and banking establishments are developing multiple proprietary mobile wallet applications for smartphones, spurring market growth for mobile payments.
In Europe, the closed mobile wallet segment is set to grow at nearly 20% CAGR between 2020 and 2026. The growth can be attributed to the increasing number of investments by e-commerce players to launch their product offerings. E-commerce industry players are building their own closed wallets to enhance customer loyalty and promote repeat purchases. The regional market growth is heavily driven by cashbacks and offers, presenting new opportunities for market expansion. Companies offer various lucrative cashbacks and discounts to incentivize customers to store money in closed wallets.
The tech companies segment accounted for over 65% market share in 2019 due to rising investments made by tech companies in mobile wallet technology. With increasing smartphone penetration and rising online engagement, tech companies are driving consumers toward mobile payments. It is estimated that over 63 million users in Europe will use mobile wallets by the end of 2023, which will be a 22% rise from 2019. Major technology players, such as Alibaba, Tencent, Google, and Facebook, have developed wallets, creating new market opportunities for the segment.
The NFC segment is growing at a CAGR of over 23% by 2026, which is attributed to the increasing use of contactless payments by subscribers in the region due to simplicity of the technology. The NFC-enabled mobile wallets have an additional layer of security, which is a major factor driving the market. NFC employs message authentication safeguards and establishes a secure channel of communication between the POS and end-user devices. The technology is improving customer satisfaction and business profits, triggering the market growth of the segment.
Some of the key vendors in the Europe mobile wallet 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.
The Europe mobile wallet market research report includes an in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD million from 2020 to 2026, for the following segments:
Europe Mobile Wallet Market, By Type
- Open wallets
- Semi-closed wallets
- Closed wallets
Europe Mobile Wallet Market, By Ownership
- Telecom Operators
- Device Manufacturers
- Tech Companies
Europe Mobile Wallet Market, By Technology
- Near Field Communication (NFC)
- Optical/QR Code
- Digital Only
The above information has been provided for the following regions and countries: