Advancements In Mobile Wallet Technology Help Increase Market Size

By Ally Kutz, contributing writer

In September, Grand View Research released its Mobile Wallet Market Analysis, following Apple’s announcement of ApplePay. The analysis, covering applications between grocery stores, transportation, restaurants, retail, and vending machines predicts a 30 percent compound annual gross rate (CAGR) increase by 2020.

Mobile payments can be classified in two ways: customer-to-business and person-to-person payment. Communication range can be classified as either proximity payment or remote payment; mobile wallet uses both communication ranges for different purposes.

Advancement in 3G and 4G mobile networks along with growth of mobile applications is credited to be the driving force behind the increase in the mobile wallet market. With these advancements, there is an increase in better user experience and security in making payments, issues many customers have voiced concerns about.

Using near field communication (NFC), mobile wallets can transmit when within a few centimeters of the payment device. This is a method that is already employed via NFC chips in some credit cards.

Both MasterCard and Visa are backing the mobile wallet, encouraging more stores to install and utilize NFC point of sale (POS) payment readers in order to help stimulate and increase the mobile wallet market. Other major retailers with a stake in the market include American Express, Apple, BlackBerry, Google, and PayPal.

The market for mobile wallets is set to grow from 230 million users to 1.4 billion in 2020, an increase of almost 1.2 billion users over 7 years.

To read the full summary and request a sample copy of Grand View Research’s report, visit this site.