The Europe, Middle East and Africa (EMEA) region is expected to dominate the mobile wallet market by 2018, a new report suggests.
The “Mobile Wallet Market – Global Industry Analysis, Size, Share, Growth and Forecast, 2012 – 2018” report by Transparency Market Research expects the mobile wallet market to be valued at US$1.6 billion by 2018.
This will represent a compound annual growth rate (CAGR) of 30.7 per cent by 2018, growth which is attributed to the increasing demand for smartphones in these markets. Smartphones can easily integrate mobile payment methods, including near field communication (NFC).
“Mobile wallet is a technology that can be used for storing financial information of a user on a NFC-enabled phone in order to facilitate payment without the intervention of cash,” the report said.
“Mobile wallet services are undertaken under financial supervision imposed by regulatory authorities, and this technology does away with payment using traditional channels such as cash, cheque, or credit card.”
Currently, Africa is experiencing a boom in mobile money transfer products, with Kenya’s M-Pesa spreading its wings to neighbouring Tanzania. This adoption is expected to usher the African market towards payment options such as NFC and point of sale (POS) terminals.
The report however warns the lack of awareness of the functions of mobile wallets and concerns about security and privacy could hinder the growth of mobile wallet products.
