At a CAGR of 36.42 percent, the global mobile money industry is predicted to increase from USD 23.12 billion in 2020 to USD 272.68 billion in 2028
It is possible to transfer money and pay for services and products via mobile phones with the use of mobile money. Mobile money is becoming increasingly popular around the world because of its better security and convenience features.
As the number of people using mobile phones grows, so does the demand for mobile money market. Companies have come up with new innovative mobile-oriented capabilities and solutions to bring the world to the fingertips of customers as the number of mobile phones and network coverage increases in developing countries. More and more people are using mobile phones to conduct financial transactions, as the number of users grows. There will be a considerable increase in the number of people using mobile phones in the future years.
In addition, the country’s expanding urbanization and ever-changing technology have fueled the growth of mobile money market services in the country. As a result of people’s familiarity with the advancements thanks to the simplicity of utilizing an application on their mobile phones, the market has grown.
There are a number of big players in the mobile money market: Vodafone, Google, FIS, Paypal, Mastercard, Fiserve and Airtel are just a few of them. There are also smaller players such as Alipay (China), MTN (South Africa), PAYTM (India), Samsung (South Korea), VISA (US), Global Payments (US), Square, Apple, Amazon, Western Union and T-Mobile (US).
By payment type, proximity payments are expected to grow at a faster rate than other types during the next few years.
During the projection period, the proximity payment segment of the mobile money market is predicted to grow at a higher rate than the rest. Mobile phones and point-of-sale (POS) devices are used to make proximity payments. Several companies already offer applications that allow for near-field communication-based payments. Payments made at a merchant’s POS terminal are referred to as in-location payments or as in-store payments in the case of a retail store. Paying within a small distance is made possible through proximity payments, which only work when the payer and recipient are in the same place at the same time. Barcodes or contactless interfaces are used to start the mobile money transaction with this payment mechanism. Using Near-field communication (NFC) technology, an NFC-enabled phone can access information about a cloud-based or debit/credit card-based mobile wallet. The NFC reader in the POS terminal reads this information from the payee’s device, which has this information stored on it. Payment card information from a customer’s own bank account is required for proximity payments, which are distinct from remote payments because they don’t require a payment processor to conduct the transaction. Brick-and-mortar businesses are increasingly embracing mobile payment technology, which is boosting the need for proximity payments.
Money transfers are expected to hold the largest part of the industry in the next years.
For the foreseeable future, mobile money transfers are predicted to hold the largest part of the industry. International remittances, cash-in/cash-out transactions, and off-net transfers all fall under the purview of the money transfers category. Real estate agents and expats alike frequently make advantage of this transaction type. The extensive use of money transfer applications can be attributed in part to the high cost of real estate in rich nations and the big number of people from developing countries who reside there. Historically, money transfer services have been provided by a variety of financial institutions. Mobile phones are being used in a growing number of transitions as individuals get used to new technologies.
QR Codes Put Mobile Money in the Driver’s Seat.
There are unique two-dimensional barcode systems known as QR codes, and scanning one of these codes is all that is required to begin a mobile payment. In the development of mobile money market, these codes have had an indelible impact. Contactless payments have moved to a new level of sophistication because of the widespread use of QR codes.
Compared to NFC, they’ve become a popular choice for most shops because of their lower cost. In order to use these, all you need is a smartphone with a working camera and an Internet connection. With the help of these codes, mobile wallets have become a lot easier to use. When it comes to in-store contactless payments, QR codes have undoubtedly outpaced NFC payments, thanks to the incentives and offers that are frequently provided by payment service providers.
Looking towards the Future with Encashing Technology
The use of Mobile Money as a substitute to cash has been demonstrated. People who don’t have access to regular banks will have an opportunity in the coming years to benefit from formal financial services. At their inception, mobile money services were aimed at consumers, not businesses.
Small and medium-sized businesses (SMEs) are becoming increasingly dependent on mobile money services, which has provided mobile money providers an opportunity to expand their value offer with the payment as a platform (PaaS).