Mobile Wallets to become $1trn worth industry in 2020

Mobile wallets wiped out the need for carrying money while reducing the chances of theft or losing currency. These conveniences are expected to continue driving the impressive market growth, in both consumer and the business segment.

The global shift towards a cashless society presents a huge opportunity for mobile wallets, with millions of people using this payment method.

According to data gathered by LearnBonds.com, the entire mobile wallet market is set to become one $1trn worth industry this year, growing by a massive 36.5% year-on-year. The strong rising trend will continue in the following years with the entire market reaching $2.1trn value.

Number of People Using Money Wallets to Jump Over 1 Billion

Mobile wallets allow payments by passing a smartphone app over a merchant's payment terminal. Data transfers are made via wireless standard Near Field Communication (NFC) or by scanning a Quick Response (QR) code to trigger an online bank transfer. ApplePay, Google Wallet, WeChat Pay and AliPay lead this market.

According to Statista survey, the number of users jumped to 1.3 billion in the last three years, growing by 13.5% year-on-year. Millennials (people between 23 to 38) and Gen Z (those between 7 and 22) members represent the major user groups, with 37% and a 25% share, respectively. By 2023, the total number of people using mobile wallets is expected to jump to 1.6 billion worldwide.

Generally, the mobile wallet market is dominated by Asian countries, spearheaded by China as global leader. According to the Statista survey, nearly 70% of those asked in China use mobile wallets regularly, and the country is expected to generate almost 80% of global mobile wallet revenues in 2020.