Albany, NY -- (SBWIRE) -- 02/09/2017 -- The growing demand for easy monetary transactions has helped the global mobile wallet market gain momentum over the last couple of years. The need to improve the security features of current transaction and payment techniques has triggered the deployment of near-field communication technology as a potential replacement for them.

The primary drivers in the global mobile wallet market include the rising penetration of tablets and smartphones and the rising use of mobile internet. The proliferating use of smartphone applications is further expected to drive the global market for mobile wallet. Benefits of using mobile wallet, such as enhanced brand recall value, easy payment modes offered to clients, and flexibility in terms of time and location, are further anticipated to boost the market.

The growing popularity of near-field communication technology among consumers across the globe and the expansion of the online shopping forum are expected to bode well for the mobile wallet market. However, concerns related to security breach and data vandalism are likely to act as deterrents in the growth of the market.

The global mobile wallet market is estimated to witness strong growth over the forecast period. In 2015, the market stood at US$675.0 bn and is projected to be worth US$1,602.4 bn by the end of 2018.

Retail Segment to Surge Ahead in terms of Adoption of Mobile Wallet

The retail segment is expected to emerge dominant among all the prime application segments including financial institutions, MNOs, payment network, customers, and intermediaries.

It is expected that the retail segment will account for a share of 46.6% by 2018, closely followed by the vending machines segment. The growth of the retail segment can be attributed to the rising number of retail stores across the globe and the demand for convenient transactions.

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In terms of consumer type, card users are estimated to rake in a large share of the pie and rise to a valuation of US$793.2 bn by the end of the forecast period. Value-added benefits given to card holders by banks is anticipated to be one of the prime factors aiding the growth of this segment.

Developing Regions to Open New Horizons for Market Growth

In developed regions such as Western Europe and North America, the presence of traditional banking channels and the prevalence of mobile phones is almost equivalent. The penetration of smartphones in North America is above 50% and is projected to rise at a significant rate in the Asia Pacific region. However, the use of mobile phones for banking is comparatively higher than traditional banking methods in developing regions.

The development of mobile banking is essential in these regions as extensive branch networks might not be an economically feasible option here. Mobile wallets enable consumers to efficiently manage their bank accounts virtually and avail services at affordable rates.