Mobile Money Market Size, Share, Growth, and Industry Analysis, by Type (P2P, P2B, B2P, and B2B), By Application (Media, Entertainment, Medical, Retail, Tourism, Hotel, Transportation and Logistics, Energy, Utilities, and Other), Regional Insights, and Forecast to 2031

Updated On: 01 April 2024

Mobile Money Market Report Overview

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The global mobile money market size was USD 35920 million in 2022 and is projected to touch USD 253274.03 million by 2031, exhibiting a CAGR of 21.2% during the forecast period. 

Mobile money accounts are used as a pay-as-you-go digital medium of exchange and a store of value, and a network of mobile money agents serves as the intermediary. It is a financial service provided to clients by a mobile network operator or another entity that collaborates with mobile network operators that is not part of the traditional banking network. To use these services, you do not need a bank account; all you need is a basic mobile phone. Financial inclusion is being driven by technology that enables financial transactions through mobile phones without requiring a bank account, particularly in developing countries. It allows more people to use financial products and services.

To use this technology, first create an account with a money transfer service and make a deposit. Then, using the short text commands provided, text cash to a friend's phone number or account ID, and receive funds by requesting and accepting payments via text message. This service is available in many countries and is particularly popular in areas where people are less likely to have bank accounts. The majority of services are provided by local mobile telecoms operators who have been granted a license to provide electronic payment services.

COVID-19 Impact: Lockdown Accelerated Market Growth.

The global COVID-19 pandemic has been unprecedented and staggering, with the mobile money industry experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to mobile money market growth and demand returning to pre-pandemic levels once the pandemic is over.

Regulators and central banks in countries where mobile and internet banking are widely used have also enacted policies to encourage the use of digital payments during the pandemic. Mobile money market growth was notable in a number of low- and middle-income economies. It has even surpassed traditional banking services in some cases, particularly in low-and middle-income economies where banking penetration is low. Recognizing the importance of remote financial service provision, particularly during the COVID-19 pandemic, several countries have taken steps to support it.

LATEST TRENDS

"Biometric Security Lead the Market Growth"

The current trend is to use biometric authentication to authenticate the transaction rather than a password or PIN. It is well-known for its quick response, increased security, and broad application, which includes fingerprints, facial recognition, and voice identification. There are currently many applications of biometrics in direct contactless payments, such as mobile transaction verification. Customers are always concerned about security; no matter how advanced technology becomes. It is critical to have biometric security in order to prevent fraud. Customers' acceptance grows in lockstep with security.

Mobile Money Market Segmentation

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• By Type

Based on type; the market is divided into P2P, P2B, B2P, and B2B

P2P is the leading part of this segment.

• By Application

Based on application; the market is divided into Media, Entertainment, Medical, Retail, Tourism, Hotel, Transportation and Logistics, Energy, Utilities, and Other

Retail is the leading part of the application segment.

DRIVING FACTORS

"The Ease of Use Boosts Market Growth"

It has been hailed as a game-changing tool for increasing access to financial services in low-resource settings. Users can quickly transfer money with a mobile phone at a low cost and without the need for an existing bank account. Money can be transferred almost anywhere using this solution, even if there are no banks nearby. This improves access in rural areas. It saves time spent travelling to send or receive money or standing in long lines to pay bills. Customers are greatly relieved as a result of this. It allows for cashless payments, which reduces reliance on cash and allows for the tracking of transaction records. This improves financial security while lowering the inherent risks of cash handling, such as loss, theft, and fraud.

"The Popularity of the E-Commerce Industry Accelerate the Market Growth"

Online purchases of goods and services have become simpler, with more options based on pricing or feature selection. When compared to the credit card method, it has lower transaction costs and improved security. It provides simple and convenient payment options in the age of online shopping. There are people in rural areas who do not have a bank account, making it difficult for them to purchase goods online. However, with the help of this service, they can also make simple online purchases. These types of money systems enable people with lower incomes to change their lifestyles and easily connect with other groups of people.

RESTRAINING FACTORS

"Lack of Awareness Hinders Market Growth"

Despite being on the popular side of the money market, mobile money has a number of drawbacks that must be carefully considered. Adoption of this service typically necessitates multi-party involvement and trust between these parties in order to have a successful platform. It requires the installation of an app, which is not available on all mobile phones, so smart phones are required for this purpose. People's ignorance and illiteracy must be reduced in order for the system to be widely accepted. It is best not to give out passwords or other sensitive information to anyone. Failure to do so will result in fraud and theft. Because of all of these factors, it is critical to educate people about the benefits and drawbacks of mobile money in order for them to understand the system. They become wise customers as their knowledge grows.

Mobile Money Market Regional Insights

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"North America to Lead Market Owing to the Technological Advancement"

North America, which has shown a proclivity for adopting newer technologies over the years, is the most lucrative region for the Mobile Money market. With several innovative key market players based in North America, this region is leading the way in terms of novel technology development, including contactless payments, direct carrier billing, mobile banking, and near-field communication. The popularity of the Mobile Money market in North America is due to a high rate of internet penetration, the growth of e-commerce, online payment, and micropayment options. Because of these factors, North America has the largest mobile money market share.

KEY INDUSTRY PLAYERS

"Prominent Players to Accelerate Market Growth"

The information in this market was gathered from a variety of sources. Trade journals, statistics from professional associations, university studies, and government reports are just a few examples. In addition to these primary sources, information is gathered from producers, distributors, sellers, retailers, micro-experts, and other market participants. The report includes information about industry participants and their local activities. Partnerships, technological advancements, acquisitions, mergers, and industrial facility expansion are a few examples of data collection and reporting methods.

List of Market Players Profiled

• Vodafone (U.K.)
• Gemalto (Netherlands)
• FIS (U.S.)
• Google (U.S.)
• Mastercard (U.S.)
• Bharti Airtel (India)
• Orange (France)
• Monitise (U.K.)
• Mahindra Comviva (India)
• PayPal (U.S.)

REPORT COVERAGE

The research includes a comprehensive examination of the market's current state, including raw materials, technology, and equipment, as well as supply and demand, production capacity, and industry chain analysis. This study assesses the market potential as well as the market risks associated with the emergence of specific categories. The influence of major market drivers and restraints on market growth is also assessed. The performance of major firms is evaluated over time, and their effects on market dynamics are investigated.