2023 Mobile Payment Statistics: Important Key Facts

Introduction

The use of mobile payments is rapidly growing due to the increasing popularity of smartphones and contactless services. It has become one of the preferred methods of payment for users, with numerous benefits. The COVID-19 pandemic has further accelerated the adoption of mobile payments as people seek safer, cashless transactions while adhering to social distancing guidelines.

Before the pandemic, billions of users worldwide already utilized mobile payments as an alternative to cash for their transactions. However, during the pandemic, many individuals turned to mobile payments as the safest option for conducting commerce.

Mobile payments offer a faster, easier and more convenient way to make payments anytime and anywhere. Additionally, the charm of rewards and discount offers associated with mobile payments attracts users even more. According to recent statistics by eMarketer, mobile payments in physical stores grew by 29% in the United States last year. In 2020, businesses that accepted Apple Pay experienced a $6 trillion increase in transactions compared to the previous year.

Mobile Payment Industry’s Growth Between 2020 and 2025

Mobile payments have revolutionized the way users conduct transactions by providing an alternative to conventional payment methods. With the advent of centralized systems, individuals can now utilize mobile payment apps for making payments and remittance services. This advancement has effectively bridged the gap between banks and the underbanked population, enabling greater financial inclusion worldwide.

Mobile payment apps such as Samsung Pay, Apple Pay, AliPay and PayPal have gained significant attraction and are being rapidly adopted by stores and businesses worldwide. These apps allow users to conveniently make payments, further fueling the growth of mobile payments. This technology has been steadily evolving for several years, driven by changing lifestyles and the increasing prominence of online retailing. Its continued growth is a testament to its convenience and effectiveness in meeting the evolving needs of consumers.

Mobile Payment Market Share Statistics

The mobile payment market has witnessed significant growth and is expected to continue its upward trajectory based on several statistics and trends:

  • By 2020, in-store mobile payments were estimated to hit $503 billion, demonstrating an impressive compound annual growth rate (CAGR) of 80% from 2015 to 2020.
  • By the end of 2020, approximately 150 million people, accounting for around 56% of the US consumer population, were using mobile payments for in-store transactions.
  • It is estimated that by 2023, around 1.31 billion individuals worldwide will utilize mobile payment systems for cashless transactions, as per eMarketer.
  • Alipay has emerged as the world’s largest mobile payment platform, boasting a user base of over 1.2 billion.
  • The global mobile payment market size is predicted to reach 3 trillion by 2024.
  • From 2020 to 2025, mobile payment usage is expected to continue its robust growth with a compound annual growth rate (CAGR) of 26.93%, surpassing traditional cash and card payments.
  • Apple Pay has surpassed Starbucks to become the top mobile payment app in the US market.
  • Between 2020 and 2025, mobile payment usage is projected to grow by 26.63%, outpacing cash and card payments.
  • The business-to-business (B2B) segment is anticipated to experience the highest CAGR from 2021 to 2028, driven by the increasing use of smartphones for personal payments.
  • The e-commerce and retail segment is expected to be a rapidly expanding area, owing to the growing partnerships between retailers and mobile payment providers.

Global Use Of Mobile Payment

The global use of mobile payments is influenced by several key factors and statistics:

  • The mobile payment market in China is significantly larger compared to the United States, approximately six times larger.
  • According to a business intelligence report, the projected value of in-store mobile payments in the US is expected to reach $128 billion by 2021.
  • The revenue generated from mobile point of sale (mPOS) worldwide is forecasted to reach $50 billion in 2021, a substantial increase from $6.6 billion in 2016.
  • In the United States, the majority of mobile payment users are over the age of 30, with an average annual income of $70,000. These users tend to spend approximately twice as much on retail compared to non-mobile payment users.
  • Discounts and reward offer play a significant role in motivating mobile payment usage, with 70% of millennials recognizing them as influential factors.
  • People commonly make mobile payments either through a web browser on their mobile devices or by using downloaded mobile payment apps.
  • According to NFC World’s news, 39% of US consumers indicate that they use mobile payments more frequently when multiple apps and stores accommodate this payment method for transactions.

Mobile Payment Methods

Mobile payments have evolved over the years, starting with pioneers like Coca-Cola in 1997 and now encompassing a range of integrated mobile payment options such as Apple Pay, Venmo, Samsung Pay, AfterPay, Cash App, Zelle and Google Pay. These mobile payment apps offer users a secure and convenient way to make cashless transactions, providing benefits such as touchless payments and faster checkout processes.

Mobile Payment Growth

The COVID-19 pandemic has significantly influenced the adoption of mobile payments. The number of people using mobile eWallets for payments increased from 900 million to 1.48 billion during the pandemic. Reports indicate that in 2021, approximately 25.7% of point-of-sale (POS) payments were made using mobile wallets, and this figure is projected to rise to 33.4% within the next three years. Mobile payments also accounted for 44.5% of all eCommerce transactions, surpassing debit card payments by twofold. The market value of mobile payments is expected to reach $12.6 trillion by 2027.

Mobile Wallet Statistics

Mobile wallets, such as Apple Pay and Samsung Pay, store users’ financial information similar to a physical wallet. Statistics show that 5% of online transactions were made using mobile wallet payments and millennials are more likely to use mobile wallets for purchases compared to baby boomers and seniors. The mobile wallet market is expected to reach $80 billion by 2026 and 66% of individuals confirm that mobile wallets are more convenient than other payment methods. Additionally, studies reveal that men tend to spend more money using mobile wallets compared to women.

QR Codes Statistics

QR code payments have gained popularity, particularly in Asia. The adoption of QR code technology in the United States has also increased, with a growth of 11% since the start of the pandemic. QR code payments are preferred by 5% of users when cash is unavailable, and it is estimated that QR code transactions will reach $2.27 trillion worldwide by 2025. In 2020 alone, 1.5 billion people used QR codes for payment.

Cryptocurrency Statistics

Cryptocurrency, such as Bitcoin, has gained significant value and acceptance. Over 75 million people currently own a crypto wallet, and more than 25,000 crypto ATMs are available in 74 countries worldwide. Around 44% of gift cards and prepaid cards accept cryptocurrency, and BitPay is the most commonly used payment service provider for crypto transactions. Over 15,000 businesses globally accept Bitcoin as payment.

Apple Pay Statistics

Apple Pay has experienced substantial growth and dominance in the mobile payment industry. In 2019, over 10 billion Apple Pay transactions were conducted, and the platform held a 92% share of all debit/credit and wallet transactions in 2020. Apple Pay is supported by 5,480 banks and approximately 900,000 apps use Apple Pay for selling goods and services. Apple Pay is accepted in 60 countries worldwide.

Mobile Payment Security Statistics

Security concerns remain a significant factor for consumers when it comes to e-payments. Approximately 40% of US consumers do not use mobile payments due to security concerns, and 70% of US consumers consider security a major concern. However, companies offering mobile payment services are actively working to enhance security measures. Mobile payment fraud accounts for 27% of online sales fraud, with account takeover fraud being the primary reason for financial losses in mobile payment channels.

Conclusion

In conclusion, the mobile payment industry has experienced tremendous growth and shows no signs of slowing down. The COVID-19 pandemic has acted as a catalyst, accelerating the adoption of mobile payments as consumers seek safe and contactless transaction options. Mobile payment apps such as Samsung Pay, Apple Pay, AliPay, and PayPal have gained widespread popularity, offering users a convenient and secure way to make payments.

Photo By: Freepik

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