The advancement of mobile phone technology is expected to drive the mobile wallet/digital wallet wallet industry in near future, according to Million Insights (www.millioninsights.com). In 2015, mobile wallet market size was valued USD 592.45 billion worldwide, says the research group.
The report says “boundless” smartphone use and its increasing penetration level will favor the mobile wallet market. The market has emerged as a result of technological advancement which enhances customer experience. Consumer payment credentials are saved and are made available at the point of sale. NFC has made significant change in payment technologies.
Mobile wallet market allows consumers to manage their account and transaction from any location at affordable price. Banks, technology vendors and payment service providers in association with main players are developing platform and infrastructure to reinforce customer experience. To differentiate the business from competitors key players have provided features such as mobile vouchers and services, digital charity scheme, dynamic currency conversion, according to Million Insights. Value added service (VAS) is acting as driving force for cashless payment.
Security issues and privacy concerns can act as restraint in this industry, says Million Insights. Lack of government initiatives and supervision is another barrier for growth in this industry over a forecasted period.