Mobile wallets are overtaking cash across the globe, with millions of people choosing them as an appealing method of managing money in both consumer and business segments. The entire market has witnessed impressive growth over the years. However, the global rise of the digital payments amid coronavirus outbreak has led to a surge in the number of mobile wallet transactions.
According to data gathered by BuyShares, the global mobile wallets industry is set to jump almost 50% amid the COVID-19 outbreak, reaching 1.47trn value this year.
Mobile Wallet Transactions Growing by a Massive 38.7% Year-on-year
Mobile wallets wiped out the need for carrying money while reducing the chances of theft or losing currency. These conveniences become incredibly popular among tech-savvy consumers, for both in-store and online payments.
In 2017, the global mobile wallets market was worth $405bn, revealed the Statista survey. Before the coronavirus outbreak, this value was expected to jump over $1trn in 2020. Nevertheless, new Statista data showed that the entire mobile POS payments segment is expected to hit $1.47trn value this year, growing by a massive 38.7 year-on-year.
The dominant upward trend is set to continue in the next twelve months, with the total transaction value jumping over $2trn in 2021. Statistics indicate this amount is forecast to double in the next four years, reaching $4.1trn by 2024.
The last few months have also witnessed an increase in the average transaction value per user in the mobile point of sale payments segment. Before the coronavirus outbreak, this amount was forecast to reach $791.2 in 2020. However, the recent statistics indicate a 62% increase compared to the previous data, with the average transaction value reaching $1,263.4 value this year. In the next four years, this amount is expected to continue rising and reach $2,380 value.
More than 1.7 Billion People Will Use Mobile Wallets by 2024
Recent years have also witnessed a surge in the number of people choosing mobile wallets to manage their payments. In 2017, 824 million people all around the world had been using this method of making payments.
The Statista data revealed the number of users is set to jump over 1.17bn in 2020, growing by 29.6% year-on-year. Millennials and Gen Z members represent the major user groups, with 37% and 25% share, respectively. In the next four years, the number of people using mobile wallets is expected to hit over 1.7 billion worldwide.
Analyzed by geography, China is the leading mobile wallets industry globally, forecast to reach $755bn value, or more than 50% of the entire market value this year.
However, statistics indicate the United States, United Kingdom, and Brazil, as the other leading mobile wallet markets, are forecast to witness the most impressive growth in 2020.
Before the coronavirus outbreak, the total transaction value in the US market was expected to hit $116bn value this year. The new Statista data revealed the market is set to witness over 200% growth amid coronavirus lockdown, with the transaction value reaching $357.5bn in 2020.
The United Kingdom is also forecast to witness a surge in the number of mobile wallet payments, with the total transaction value reaching $45.7bn this year, a threefold increase of the pre-COVID-19 figures.
Brazil ranked as the third-largest mobile wallet industry globally, with a $22.2bn transaction value in 2020, a $13.2bn increase amid coronavirus outbreak.