Mobile wallet is the electronic wallet that provides reliability to the consumers to purchase electronically and to make payments online. According to the study by Hexa Research, Mobile Wallet Market is estimated to reach over USD 2,950 billion by 2020. Increasing growth of mobile internet application and Smartphone penetration, are expected to serve key market drivers over the forecast period. The global mobile wallet was estimated to comprise over 200 million users in 2013, expected to reach over 1,420 million users by 2020, with growing CAGR of 30.0 % from 2014 to 2020.Retail being the largest application area in 2013, contributed for over 39% of global market.
This can primarily be attributed to initiatives to equip retail stores with easy mobile device payment options along with integration of POS terminals and several loyalty schemes that results in better customer engagement. North America dominated the Mobile wallet industry globally, contributing in largest market share in terms of revenue. The early adaption of advanced internet services like 3G and 4G are the major factors promoting the mobile wallet industry in this region. Asia Pacific is likely to witness lucrative growth over next five years due to rapid increase in awareness about online payment and mobile wallet services. Asia Pacific contributed for over 30 % of Mobile wallet market volume globally. This region is likely to witness the rapid growth over next five years.
The mobile wallet payment is divided into methods such as person to person payment (P2P) and customer to business payment (C2P) on basis of transaction targets. It is further divided into Proximity payment and Remote Payment. Remote payment is the process where the customer makes payment through short range of communication technology such as Bluetooth, infrared, near field communication and RFID. In remote payment method, the user makes payment with mobile devices and operates back end system through communication network.