Market Size of APAC Mobile Payments Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 23.91 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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APAC Mobile Payments Market Analysis
The Asia Pacific Mobile Payments Market is expected to grow at a CAGR of 23.91% over the forecast period (2022 - 2027). With the changing lifestyle, Increased smartphone penetration, and the latest online retailing trends, the mobile payments market in Asia-Pacific is expected to grow significantly over the forecast period.
- The mobile payment landscape across the Asia-Pacific region is changing rapidly, owing to unsettling digital transformation. The technological developments in the smartphone have enabled POS at retail terminals and on-the-go fund transfer, which are fueling the global market growth. Mobile payment platforms, such as Tencent, based in China, have witnessed robust growth. Tencent also expanded in other Asian countries, like Thailand, and it is searching for major partners that can help it localize its services in the country.
- According to the India Brand Equity Foundation (IBEF), India had over 1.18 billion mobile connections, 700 million internet users, and about 600 million smartphones as of October 2021. Each quarter has seen a sharp increase in these numbers. India led the world in terms of the volume of real-time payment transactions in 2020, with over 25.5 billion. Consequently, there is a raising need for smartphones. It is ultimately expanding the mobile payments market, further accelerating market expansion. The market is also growing due to increasing government efforts, funding, support, and funding from several large businesses.
- The rise of e-commerce and the O2O market has created an abundance of scenarios for people to adopt mobile payments in recent years. According to WorldPay, digital/mobile wallet is expected to occupy 60.2% of e-commerce payments by 2024 in the Asia-Pacific region, followed by credit card (16.1%). On the other hand, mobile payment played a crucial role in reducing friction and making on-demand, small-ticket services easily adoptable when they first began to emerge in the region. Rapid developments in these sectors, in turn, further drive the uptake in mobile payment usage.
- Increasing standardization and interoperability in cross-border payments are among the highest priorities for regulatory bodies. One such initiative is the ISO 20022 standard for messages across cross-border payments; the standard for electronic data interchange between financial institutions is expected to begin in late 2022 instead of November 2021 as SWIFT had initially planned; these delays are also hindering the market growth.
- The Ministry of Commerce (MOFCOM) and the National Health Commission (NHC) ministries of China collaborated to issue the 'Notice Concerning Properly Performing Life Services Enterprise Work to Prevent and Control the Spread of the Novel Coronavirus Infectious Pneumonia.' The notice requires the Chinese consumers to use swipe card payments and various types of mobile payments methods for settlement purposes during the COVID-19 outbreak.
APAC Mobile Payments Industry Segmentation
Mobile payments refer to transactions under the purview of various regulatory bodies using mobile devices as part of initiatives to digitize payments. Mobile device payments are alternatives to cash, cheques, or physical credit cards.
The Asia Pacific Mobile Payments Market is segmented by Type (Proximity Payment, Remote Payment), By End User (BFSI, IT and Telecommunication, Retail, Healthcare, Government, Media and Entertainment, Transportation and Logistics), and Country.
By Type | |
Proximity Payment | |
Remote Payment |
By End-User Industry | |
BFSI | |
IT and Telecommunication | |
Retail | |
Healthcare | |
Government | |
Media and Entertainment | |
Transportation and Logistics | |
Other End User |
By Country | |
China | |
India | |
Japan | |
South Korea | |
Rest of Asia Pacific (includes Philippines, Vietnam, Malaysia, Australia) |
APAC Mobile Payments Market Size Summary
The Asia Pacific mobile payments market is experiencing rapid transformation driven by digital advancements and increased smartphone penetration. This growth is fueled by the rising adoption of mobile payment platforms, such as Tencent in China, which is expanding its services across the region. The surge in e-commerce and the O2O market has created numerous opportunities for mobile payment adoption, with digital wallets expected to dominate e-commerce payments in the coming years. Regulatory bodies are prioritizing standardization and interoperability in cross-border payments, although delays in initiatives like the ISO 20022 standard are impacting market growth. The COVID-19 pandemic has further accelerated the shift towards mobile payments, with governments encouraging contactless transactions to prevent virus spread.
Countries like China and India are at the forefront of this digital payment revolution, with significant increases in mobile connections and internet users. The Indian market, traditionally cash-dominated, is rapidly embracing digital payments, spurred by government initiatives like the demonetization scheme and the launch of the BHIM app. The Unified Payments Interface (UPI) has simplified transactions, making it a preferred payment system. Major players in the industry, including Google, Apple, and PayPal, are actively investing in partnerships and product development to enhance their market presence. Recent strategic alliances and investments, such as MoneyGram's partnership with Digital Wallet Corporation and MoMo's Series E funding, highlight the dynamic nature of the market as companies strive to expand their offerings and reach.
APAC Mobile Payments Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Intensity of Competitive Rivalry
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1.2.5 Threat of Substitutes
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1.3 Assessment of Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Proximity Payment
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2.1.2 Remote Payment
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2.2 By End-User Industry
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2.2.1 BFSI
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2.2.2 IT and Telecommunication
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2.2.3 Retail
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2.2.4 Healthcare
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2.2.5 Government
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2.2.6 Media and Entertainment
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2.2.7 Transportation and Logistics
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2.2.8 Other End User
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2.3 By Country
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2.3.1 China
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2.3.2 India
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2.3.3 Japan
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2.3.4 South Korea
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2.3.5 Rest of Asia Pacific (includes Philippines, Vietnam, Malaysia, Australia)
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APAC Mobile Payments Market Size FAQs
What is the current APAC Mobile Payments Market size?
The APAC Mobile Payments Market is projected to register a CAGR of 23.91% during the forecast period (2024-2029)
Who are the key players in APAC Mobile Payments Market?
Google LLC, Samsung Group, Amazon.com Inc., Paypal Inc. and Mastercard Inc. are the major companies operating in the APAC Mobile Payments Market.