Mobile Payment Market is Rising Drastically

Research from a US research firm Serika Allied Market Research on mobile payment is interesting. The industry is expected to boost to USD3.39 billion by 2022. Interestingly, this market is fueled by developments in Asia Pacific. The company estimates that the mobile payment sector will grow 33.4 percent year-on-year (CAGR) from 2016 to 2002. This growth is led by SMS and WAP-based systems despite many NFC PoS (point of sale) terminals and massive mobile payment campaigns. The analysis used in this research is the technology used in transactions, applications, and geography. Markets are segmented by SMS, WAP, and NFC. Type of mobile payment is mobile wallet/bank card and mobile money or 소액 결제 현금화. A number of mobile payment usage applications including entertainment, energy, health, retail, transportation, and others. While the geographical side studied in North America (US, Canada, & Mexico), Europe (UK, Germany, Switzerland, and other European countries), Asia-Pacific (India, China, Japan, and other Aspac countries), and LAMEA (Latin America, Middle East, & Africa).

A more cost-effective mobile payment model comes from smartphone manufacturers. Apple introduced Apple Pay and Samsung released Samsung Pay. Apple Pay serves about 2 million retail stores and is newly available in the UK, Australia, USA, and Canada. While in contrast in India and China service providers provide non-cash payment. The growth of m-commerce transactions shows online shopping using smartphones so a new alternative. Therefore, growth in the mobile payment sector continues to increase. Countries such as Singapore, Australia, and Japan are among the major markets that will become the non-cash market next year. Mobile payment transactions through NFC technology will also be anticipated in Asia Pacific to encourage the non-cash community. Today there are a lot of store merchants, restaurants, and other merchants who work with banks that provide special discounts for electronic money users. So it certainly gives benefits to the card owner.

Based on the data held, there is a trend of non-cash transaction increase in the community. Non-cash transaction volume increased from 2,346 million transactions to 2,682 million transactions through June 2016. This indicates that the public began to civilize and believe in non-cash payment instruments.