A fresh intelligence study by Transparency Market Research (TMR) has detected that the global m-commerce payments market has a highly prosperous future, with the demand projected to expand at a phenomenal CAGR of 46.9% during the forecast period of 2017 to 2022. The report identifies ACI Worldwide, Inc., Alphabet Inc., Apple Inc., DH Corporation, Fidelity National Information Services, Inc., Fiserv, Inc., Jack Henry & Associates Inc., Mastercard Incorporated, Paypal Holdings, Inc., Square, Inc., Visa, Inc., and Samsung Electronics Company Limited as some of the key companies currently operating in the global m-commerce payments market.
As per the findings of the report, the global m-commerce payments market is still in nascent stage, as neither the merchants nor the consumers have fully embraced the new technology. However, owing to the ubiquity of smartphones and technological advancements in terms of security and ease of usage, vast new opportunities will open up in the m-commerce payments market in the near future, and keep the pioneering companies in good stead. As per the evaluations of the TMR report, the global m-commerce payments market was worth merely US$1.11 bn in 2017, and estimates it to reach a valuation of US$7.55 bn by the end of 2022.
Based on mode of payment, the global m-commerce payments market gains maximum demand for peer-to-peer transfer segment, which is projected for a CAGR of 45.1% during the forecast period of 2017 to 2022 to reach a valuation of US$2.7 bn by 2022. Region-wise, North America is estimated to increment the demand at most robust CAGR of 47.4% among all the regions studied under this report.
Enhanced Security and Loyalty Integration to Drive Adoptability of M-Commerce
Some of the key factors augmenting the demand in the global m-commerce payments market are: increasing penetration rate of smart devices such as smartphone and tablets, broader reach due to mobility, growing collaboration between online and offline activities, and improved bandwidth, which has helped easing out the transactions. The report observes that benefits such as enhanced security features, loyalty integration, and faster checkout are prompting the adoption of m-commerce. In addition to that, m-commerce has the potential to become cheaper than traditional services such as banking, marketing and advertising, and purchasing, which in turn will reflect positively on the global m-commerce payments market. Various social media platforms have also launched ‘buy’ bottons, which helps the marketers to generate sales leads in an instantaneous manner.
In the near future, the companies operating in the global m-commerce payments market are expected to spend additional focus on customer experience as a large percentage of them are seen to abandon the purchase on e-commerce websites mid-way. In-app payments such as Apple Pay and Walmart Pay not only helps the end-users to make swift transactions, it also helps the merchants to keep track of their buying habits and in turn offer lucrative discounts in order to increase sales during on and off seasons. Factors such as deliverance of new services to existing customers, vast potential to optimize the products, and utilization of device specific capabilities are expected to open new opportunities for the vendors operating in the global m-commerce payments market.
Security Issues Continues to Hinder the Growth Rate
On the other hand, the dearth of mobile friendly websites, limitations pertaining to internet connections in a number of emerging economies, security concerns, and slow adoptability rate of several retailers regarding credit card chip readers are some of the obstructions holding the global m-commerce payments market from attaining its true potential.