Utilizing innovative digital technology to conduct financial services, could reduce transaction costs with as much as 90% – which in turn makes the financial services available to a much greater market.
The mobile wallet market was valued at approximately USD 594.00 billion in 2016 and is expected to reach approximately USD 3,142.17 billion by 2022
The number of smartphone users is forecasted to grow from 2.1 billion in 2016 to around 2.9 billion in 2020, with smartphone penetration rates increasing as well.
Introducing Digital Wallets
A mobile wallet is a type of payment service through which businesses and individuals can receive and send money via mobile devices. A mobile wallet is also known as mobile money, e-wallet, or a digital wallet. Mobile payments is being adopted all over the world in different ways, due to the ease of use, the lower barrier of entry for new users, as well as the ever increasing number of Internet connected smartphones.
E-Wallets are also making an increasing impact for merchants due to the simplicity for both parties when conducting the payments, as well as the often lower processing fees. On top of this, e-wallets often carry a certain flexibility for customers to fund the wallet by a variety of methods and thereby getting closer to mirroring how transactions are being done today for banked as well as unbanked around the globe.
In some countries, more people use phones for banking than they do banks. That number is expected to nearly double between 2013 and 2017, as hundreds of millions of people in the developing world adopt mobile banking as the centerpiece of their financial lives.
Zion Market Research has published a new report which includes a comprehensive analysis of the size, share, growth, Segment, trends and forecast (2016 – 2022) on the mobile wallet market. According to the report, the global mobile wallet market was valued at approximately USD 594.00 billion in 2016 and is expected to reach approximately USD 3,142.17 billion by 2022, growing at a CAGR of around 32% between 2017 and 2022.
The mobile money revolution can be seen in the 590 million mobile phone owners who bank using their phones today, a number expected to top 1 billion by 2017. The trend is most notable in the developing world, where millions of people who lack bank accounts use their mobile phones as electronic wallets, accessing the financial system for the first time.
The Global Smartphone Market
Looking at the global smartphone sales forecasts, one will find indicators that the market is expected to slow considerably over the next few years. This is due to the mature markets being close to reaching their peak, meaning most sales of new devices are mostly current users upgrading their phones, instead of new users shopping for their first smartphone.
Meanwhile, emerging markets will continue to see robust shipment growth. India and Indonesia, for instance, will help fuel a large share of the shipments growth within the global smartphone market over the next few years. Analyzing the adaption numbers from developed countries, we find that they are about saturated when the smartphone penetration reaches about 60-65% – which is where they are today.
A recent report from BI Intelligence notes down the following key points when looking at the smartphone forecasts from today until 2021:
The global smartphone market is still growing at a steady pace due to more widespread adoption in emerging markets. They estimate the global market will hit about 2.1 billion units shipped in 2021 growing at 6% CAGR during 2016-2021.
Shipments growth over the past few years has been driven by the falling price of smartphones, which has made handsets more accessible in emerging markets. The average selling price of a smartphone in India nearly halved between 2010 and 2015.
With relatively low smartphone penetration, we forecast Indian smartphone shipments to grow rapidly over the next five years. Nevertheless, India has a long way to go before it surpasses China as the world’s leading market for smart handsets. India is estimated to account for roughly 10% of the global smartphone market in 2016, considerably less than China’s 30% share.
The global platform wars are over, even as smartphone adoption continues to rise across various markets worldwide. Android and iOS are estimated to account for 97.3% of global platform market share in 2015, compared to 96.3% last year.
Saturation Rate Emerging Markets:
Smartphone adaption rate of the total addressable market in some of the countries Blockbonds Global PLC are investigating. 100% on the progress bar, equals a 65% adaption rate, which is when the market is estimated to be saturated in developed countries.