Mobile wallet payments took off over the past few years, fuelled by the global shift toward a cashless society and COVID-19.
According to data presented by AugustaFreePress.com, digital or mobile wallet payment was the most used point of sale payment method globally, with a 29% market share last year. By 2025, mobile wallets will make nearly 40% of all POS transactions worldwide.
Mobile payments make 44% of all POS transactions in Asia; five times more than in the US and Europe
The digital transformation of the global payments industry led to the surging use of mobile wallets. According to the 2022 Global Payments Report from FIS, mobile payments made nearly one-third of all POS transactions last year, compared to 24% share of credit cards, 23% share of debit cards, and 18% share of cash payments.
While mobile POS payments are set to reach nearly 40% share in the next three years, credit cards will drop to 22% of all POS transactions, the same as debit cards. Cash will make up only 10% of transactions.
However, statistics show that mobile wallet adoption wasn’t the same in all markets. Mobile wallet payments have become a vital part of the Asian consumer landscape, making 44% of all POS transactions last year, five times more than in the US or Europe. By 2025, this figure is forecast to jump to 56%.
The Middle East and Africa had the second highest share of POS mobile payments, at 12%. In the next three years, mobile wallets are forecast to make up 21% of all POS transactions in this region.
North America saw only 10% of POS transactions carried out on mobile. The survey revealed that US consumers still prefer credit cards, which accounted for 40% of all POS transactions last year. However, by 2025, the share of mobile POS payments is expected to rise to 15%.
Europe had the smallest market share of mobile POS payments, 8% in 2021. While most Europeans, 40% of them, still prefer debit cards when paying in stores, this payment method is forecast to drop to 38% share in 2025. On the other hand, mobile wallet payments will double and hit a 15% market share in the next three years.
Mobile POS transactions to grow by $500 billion a year
As the global adoption of mobile wallets continues rising, the total transaction value in the mobile POS payment segment is set to reach new record highs.
In 2022, mobile POS payments are forecast to hit a $2.88trn transaction value with over 1.5 billion users worldwide, according to a Statista survey. China, the world`s leading market for mobile wallet payments, will make up $1.55trn or 53% of total transaction value this year. The United States and the United Kingdom follow, with $542bn and $115bn, respectively.
Statistics show the transaction value is expected to grow by more than $500bn in the next three years and hit $4.53trn in 2025. Statista also predicts that 200 million people will start using mobile wallets in this period, with the total number of users reaching to 1.7 billion worldwide.