Global M-commerce Payment Market Size and Growth Report By Payment Method (Mobile Web Payments, SMS/Direct Carrier Billing, Near-Field Communication, Other Payment Methods), By Transaction Type (M-Billing, M-Retailing, M-Ticketing, Other Transaction Types), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: Oct. 2024
- Report ID: 130651
- Number of Pages:
- Format:
- keyboard_arrow_up
Quick Navigation
Report Overview
The Global M-commerce Payment Market size is expected to be worth around USD 95.9 Billion by 2033, from USD 12 Billion in 2023, growing at a CAGR of 19.1% during the forecast period from 2024 to 2033. In 2023, APAC held a dominant market position, capturing more than a 35% share, holding USD 4.2 Billion revenue.
M-commerce payment involves transactions made through mobile devices like smartphones and tablets. This type of payment allows consumers to purchase products and services on the go, using various apps and mobile websites. It’s particularly popular because it’s convenient; people can shop and complete transactions from anywhere, at any time. Common methods include mobile wallets, direct carrier billing, and QR code scans.
The m-commerce payment market is experiencing robust growth driven by the increasing adoption of smartphones and mobile internet, Consumers are increasingly comfortable using mobile devices for transactions, reflecting a shift towards convenience and speed in shopping experiences. This trend is further supported by the proliferation of mobile wallets and payment apps that streamline the purchasing process.
Innovation in security measures, such as biometric authentication and encryption, has bolstered consumer trust in mobile payments. As businesses integrate advanced technologies, such as AI and machine learning, the ability to offer personalized and seamless experiences enhances customer engagement. Moreover, the rise of contactless payment options has further reshaped consumer behaviour.
The M-commerce payment market offers ample opportunities for growth, particularly in developing regions where traditional banking infrastructure is limited. Mobile payments can bridge this gap, providing access to financial services for underserved populations. Furthermore, the integration of AI and machine learning for personalized shopping experiences presents new opportunities for market expansion.
The expansion of the M-commerce payment market is set to continue as technology evolves and more regions adopt mobile payment solutions. Key areas for expansion include contactless payments, enhanced security technologies, and cross-border transactions that can accommodate international shoppers more effectively. As businesses and consumers increasingly embrace these technologies, the market is expected to grow substantially in the coming years.
For instance, According to the India Brand Equity Foundation (IBEF), the e-commerce industry in India is poised for exponential growth. By the year 2030, the market value of this sector is projected to reach an impressive USD 350 billion. This significant increase is primarily driven by the rapid digitalization of commerce and the increasing accessibility of the internet across the country.
According to recent findings from Wisernotify, a significant 56% of consumers worldwide now prefer to shop using their mobile devices. This trend not only highlights the convenience mobile shopping offers but also points out the necessity for retailers to optimize their websites and apps for mobile use.
In 2024, the average transaction value of mobile purchases is expected to reach around $120. This emphasizes the growing economic impact of mobile commerce, urging businesses to enhance their mobile shopping platforms to capture this increasing spend.
In terms of payment preferences, around 60% of consumers have embraced contactless payments, using them at least once a month in 2024. This shift demonstrates a robust trust in mobile payment systems. Moreover, about 10% of mobile transactions now incorporate biometric security measures such as fingerprint and facial recognition.
Key Takeaways
- The M-commerce Payment Market is projected to grow significantly, reaching an estimated value of USD 95.9 Billion by 2033. This represents a substantial increase from its valuation of USD 12 Billion in 2023, with an anticipated compound annual growth rate (CAGR) of 19.1% from 2024 to 2033.
- In the segment breakdown for 2023, Mobile web payments emerged as the leading category, securing a major share of 38.1% in the Global M-commerce Payment Market. This segment includes payments made through websites accessed via mobile devices.
- Additionally, the m-retailing segment, which covers mobile retailing transactions, also held a dominant position in the market, accounting for 45.9%. This indicates a strong preference among consumers for purchasing goods and services directly through mobile apps or websites.
- Regionally, the Asia-Pacific area was the largest market in 2023, holding more than a 35% share of the global m-commerce payment market. This dominance is attributed to the high adoption of mobile devices and increasing preference for mobile-based shopping in this region.
M-commerce Payment Statistics
- Mobile Commerce Growth: According to the findings of redline, Global mobile commerce sales are on a rapid ascent, poised to surpass $3 trillion by 2027. Smartphones are increasingly dominant, now handling over 60% of e-commerce transactions.
- 5G Expansion: By 2028, 5G subscriptions are expected to hit 5 billion, covering 85% of the global population and managing 70% of mobile data traffic.
- Shopping Trends: Clothing and shoes are the top items purchased online, capturing 44% and 34% of sales, respectively. However, mobile carts are abandoned at a high rate of 80%, compared to 74% on desktops.
- Social Commerce Influence: Around 40% of social media users follow influencers, with 30% making purchases based on these endorsements. This trend underscores the rising impact of social commerce.
- US Market Outlook: Mobile commerce in the U.S. is set to climb from $360 billion in 2021 to an estimated $710 billion by 2025. In Asia Pacific, mobile devices facilitate 80% of digital sales, highlighting regional reliance on mobile technology.
- User Engagement: M-commerce General Statistics by simicart, A significant 79% of smartphone users have bought items online via their devices in the past six months. During the COVID-19 peak, 51% of Americans installed new shopping apps.
- App Usage: 21% of smartphone owners check retail apps several times a day, and 35% do so weekly. Comparatively, 49% of users utilize apps to price check.
- Device Ownership: In the U.S., 77% of adults have smartphones, and 53% own tablets, presenting a vast base for mobile commerce potential.
M-commerce Payment Market In APAC
In 2023, APAC held a dominant market position in the M-commerce Payment Market, capturing more than a 35% share and generating USD 4.2 billion in revenue. This significant market presence is driven by a combination of economic, technological, and consumer behavioral factors that make APAC a pivotal area for mobile commerce growth.
The rapid adoption of smartphones and mobile internet across the APAC region is a primary driver of its leading position. Countries like China, India, and Southeast Asia have seen a surge in smartphone penetration, supported by competitive pricing and widespread mobile network infrastructure enhancements. This widespread availability of mobile technology has made it easier for consumers to access mobile payment platforms, propelling the region to the forefront of the M-commerce expansion.
According to the GSMA’s Mobile Economy Asia Pacific 2024 report, mobile technologies and services made a substantial economic contribution in 2023, adding $880 billion to the Asia Pacific economy. This impressive figure accounted for 5.3% of the region’s GDP, underscoring the pivotal role of mobile technologies in driving economic growth. Furthermore, the sector supported around 13 million jobs, highlighting its significance as a major employment driver across diverse industries within the region
Furthermore, APAC benefits from a large, young, and tech-savvy population that is eager to embrace new technologies. Mobile payments are seen not only as a convenience but also as an integral part of how modern transactions are conducted. This demographic trend is crucial as younger consumers are more likely to use mobile devices for a variety of financial transactions, from small retail purchases to larger financial commitments.
Additionally, the supportive governmental policies promoting digital payments in several APAC countries have fostered a favorable environment for the growth of M-commerce. Governments are actively pushing initiatives to increase digital literacy and build more robust digital payment infrastructures, which in turn boosts consumer confidence in and adoption of mobile payment solutions. This strategic emphasis on digital economies is further solidifying APAC’s leadership in the M-commerce Payment Market.
Based on above report, North America is on a trajectory to significantly expand its digital landscape by 2025. The region is projected to have 328 million smartphone subscribers, demonstrating a robust engagement with mobile technology. This growth is supported by an anticipated Internet penetration rate of 80% and a mobile subscriber penetration rate of 86%.
As of 2023, about 92% of the U.S. population had access to the internet, making the country one of the largest online markets globally. While in 2022, there were around 299 million internet users, recent estimates show that this number has significantly grown to approximately 331 million by 2024.
Payment Method Analysis
In 2023, the Mobile Web Payments segment held a dominant market position within the M-commerce Payment Market, capturing more than a 38.1% share. This prominence in the market can be attributed to several pivotal factors that align well with current consumer preferences and technological advancements.
The surge in mobile web payments is primarily driven by the increasing adoption of smartphones and the proliferation of mobile internet services. Consumers are finding it increasingly convenient to make purchases directly from their mobile browsers. This ease of access, combined with the ability to shop anytime and anywhere, enhances the appeal of mobile web payments over more traditional methods.
Security improvements have also played a significant role in the growth of this segment. With more robust encryption methods and secure transaction protocols now standard, consumers feel more confident in conducting financial transactions online. The introduction of features such as two-factor authentication and biometric security measures has further reinforced this trust, making mobile web payments a preferred choice for many.
Additionally, the backing by major financial institutions and continuous technological innovations have facilitated the widespread acceptance of mobile web payments. Financial entities are increasingly supporting mobile web payment methods through partnerships with technology companies, driving both advancements and consumer trust forward.
Transaction Type Segment Analysis
In 2023, the M-Retailing segment held a dominant market position within the M-commerce Payment Market, capturing more than a 45.9% share. This segment’s leadership is supported by several compelling factors that align with broader trends in consumer behavior and technological advancements.
A significant driver for M-Retailing’s dominance is the continuous rise in mobile device usage. As smartphones become more integral to daily life, consumers are increasingly turning to their mobile devices for shopping due to the sheer convenience it offers. This trend is supported by improvements in mobile technology that make browsing, selecting, and purchasing products seamlessly possible on mobile platforms.
Another critical factor is the enhanced security measures now standard in mobile transactions. Advances such as end-to-end encryption and secure sockets layer (SSL) technology provide consumers with the confidence to make purchases without worrying about the safety of their personal and financial information. This security assurance has been pivotal in persuading more consumers to embrace M-Retailing.
Furthermore, the development and refinement of user-friendly mobile shopping applications and websites have significantly contributed to the growth of M-Retailing. Retailers have focused on optimizing the mobile shopping experience, ensuring that it is as intuitive and engaging as the desktop shopping experience.
This focus on user experience, coupled with personalized marketing strategies that target mobile users, has effectively expanded the reach and attractiveness of M-Retailing, solidifying its position as the leading segment in the M-commerce Payment Market.
Key Market Segments
By Payment Method
- Mobile Web Payments
- SMS/Direct Carrier Billing
- Near-Field Communication
- Other Payment Methods
By Transaction Type
- M-Billing
- M-Retailing
- M-Ticketing
- Other Transaction Types
Key Regions and Countries
- North America
- US
- Canada
- Europe
- Germany
- France
- The UK
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Singapore
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
Drivers
Increasing demand for convenience and accessibility
The increasing demand for convenience and accessibility is a primary driver for the global m-commerce payment market. consumers today prioritize seamless shopping experiences that allow them to make purchases quickly and effortlessly, mobile devices provide the perfect platform for this need, enabling transactions at any time and from any location.
Furthermore, mobile apps and wallets have simplified the payment process, reducing the friction often associated with traditional shopping methods. Features such as one-click payments and saved payment information enhance user satisfaction by streamlining checkout processes.
As a result, retailers are increasingly optimizing their platforms for mobile use, recognizing that a convenient shopping experience directly correlates with increased sales and customer loyalty. This ongoing trend underscores the importance of accessibility in driving the growth of m-commerce payments.
Restraint
Security concern
Security concerns significantly restrain the global m-commerce payment market as consumers often worry about the safety of their financial information. High-profile data breaches and fraud cases have heightened awareness, leading to reluctance to adopt mobile payment solutions. this skepticism can slow the growth of m-commerce; as potential users hesitate to engage in transactions without assurance of security.
Moreover, the complexity of securing mobile payment platforms can challenge businesses. retailers must invest in advanced security technologies, such as encryption and biometric authentication, to build consumer trust. Failure to address these concerns effectively can result in a loss of sales and a damaged reputation.
Additionally, regulatory compliance surrounding data protection intensifies the security landscape. Companies must navigate varying regulations across different regions, which can complicate the implementation of secure payment systems and deter market expansion.
Opportunities
Innovative payment solutions
Innovative payment solutions represent a significant opportunity for the global m-commerce payment market, driven by technological advancements and evolving consumer preferences, Digital wallets, such as Apple Pay and Google Wallet, enable seamless transactions, allowing users to make purchases with just a tap. This convenience enhances the shopping experience and encourages consumers to adopt mobile payment methods.
Moreover, the rise of cryptocurrencies offers a new dimension to m-commerce, appealing to tech-savvy customers seeking alternative payment options. As businesses integrate cryptocurrency payment solutions, they can attract a broader customer base, particularly among younger demographics.
Advancements in biometric authentication and AI-driven fraud detection enhance security, fostering consumer trust in mobile transactions, as security concerns diminish, more consumers are likely to embrace innovative payment solutions, further propelling the growth of the m-commerce payment market.
Challenges
Shift in consumer preferences and behavior
Shifting consumer behavior and preferences pose significant challenges for the global m-commerce payment market. As consumers increasingly demand personalized and seamless shopping experiences, retailers must continually adapt their payment solutions to meet these evolving expectations, failure to do so can lead to customer dissatisfaction and loss of sales opportunities.
Moreover, the rise of alternative payment methods such as cryptocurrencies and buy now pay later options, reflects changing consumer preferences, businesses must navigate this landscape by integrating diverse payment options while ensuring security and ease of use, which can strain resources and complicate operations.
Additionally, the demand for enhanced security and privacy protection has intensified as consumers become more aware of data breaches and fraud. This necessitates ongoing investment in robust security measures, further complicating the payment landscape for m-commerce providers.
Growth Factors
The global m-commerce payment market is primarily driven by the increasing adoption of smartphones and mobile devices. As mobile internet access becomes more widespread, consumers are more inclined to use their devices for shopping and payments, creating a significant demand for m-commerce solutions.
Additionally, the rise of mobile wallets and payment applications enhances the convenience and speed of transactions. Features like one-click payments and secure biometric authentication encourage more users to adopt mobile payment methods, fostering a seamless shopping experience.
Furthermore, advancements in technology, such as contactless payments and near field communication are reshaping consumer behaviour. As these innovations gain traction, they not only streamline payment processes but also build trust among users, further propelling the growth of the m-commerce payment market.
Latest Trends
The global m-commerce payment market is witnessing a surge in contactless payment adoption, fueled by the growing demand for convenience and safety. Consumers prefer tap-to-pay solutions that expedite transactions, particularly in response to health concerns.
Additionally, the integration of digital wallets and mobile banking apps is enhancing user experience, offering seamless payment processes. These platforms increasingly support various payment methods, including cryptocurrencies, appealing to tech-savvy consumers.
Moreover, advancements in security technologies, such as biometric authentication, are bolstering consumer confidence in mobile payments. This trend is essential for encouraging wider adoption and ensuring the future growth of m-commerce payments.
Key Players Analysis
One of the prominent players in the market is Amazon that leverages its vast logistics network and customer centric approach. It has a robust product range, advanced algorithms for personalized recommendations, and a strong mobile app experience.
Another significant player in the market is Alibaba Group that operates multiple platforms, including Taobao and Tmall, catering to diverse consumer needs. It has an extensive reach in China and South east Asia, has a strong payment ecosystem with Alipay and effective use of data analytics for consumer engagement.
Top Key Players in the Market
- Apple Inc.
- Google LLC
- Samsung Electronics Co., Ltd.
- Amazon.com, Inc.
- PayPal Holdings, Inc.
- Mastercard Inc.
- Visa Inc.
- Block, Inc.
- Stripe, Inc.
- Adyen
- Other Key Players
Recent Developments
- In July 2024, Open Payment Technologies Ltd., a prominent provider of advanced FinTech solutions, launched a digital wallet application, Kuady. The launch of Kuady is designed to advance financial inclusion and revolutionize the management of finances for merchants and users.
- In April 2024, Mastercard launched a mobile virtual card application that effortlessly integrates virtual commercial cards into digital wallets. This innovative application aims to provide financial institutions greater flexibility in delivering sustainable and secure contactless payment solutions, meeting companies’ growing expectations.
Report Scope
Report Features Description Market Value (2023) USD 12 Bn Forecast Revenue (2033) USD 95.9 Bn CAGR (2024-2033) 19.1% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Payment Method (Mobile Web Payments, SMS/Direct Carrier Billing, Near-Field Communication, Other Payment Methods), By Transaction Type (M-Billing, M-Retailing, M-Ticketing, Other Transaction Types) Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA Competitive Landscape Apple Inc., Google LLC, Samsung Electronics Co., Ltd., Amazon.com, Inc., PayPal Holdings, Inc., Mastercard Inc., Visa Inc., Block, Inc., Stripe, Inc., Adyen, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) 
- Apple Inc. Company Profile
- Google LLC
- Samsung Electronics Co., Ltd.
- Amazon.com, Inc. Company Profile
- PayPal Holdings, Inc.
- Mastercard Inc.
- Visa Inc.
- Block, Inc.
- Stripe, Inc.
- Adyen
- Other Key Players
- settingsSettings
Our Clients
- 130651
- Oct. 2024
| Single User $6,000 $3,999 USD / per unit save 24% | Multi User $8,000 $5,999 USD / per unit save 28% | Corporate User $10,000 $6,999 USD / per unit save 32% | |
|---|---|---|---|
| e-Access | |||
| Report Library Access | |||
| Data Set (Excel) | |||
| Company Profile Library Access | |||
| Interactive Dashboard | |||
| Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
| Accessibility | 1 User | 2-5 User | Unlimited |
| Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
| Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
| Buy Now ($ 3,999) | Buy Now ($ 5,999) | Buy Now ($ 6,999) |
