The growth of mobile phone users, mobile and smartphone penetration coupled with decreasing prices of handsets has made this channel the number one focus area for every organization. The convenience that mobile provides in terms of payments is one of the major interest areas that any commerce/transaction application is looking to build up.
The below table provides you with a consolidated view of the global mobile payment markets and their major drivers as predicted by various research houses.
Although various forecasts predict different numbers as the total market size, they all point to a common factor that mobile payments are poised to witness a growth of over 30% annually in the coming five years.
Some of the common factors that are going to propel this growth are P2P payments, mobile commerce, proximity payments, wallets and government services that are going mobile.
While these factors are fairly known, one has to keep in mind that proximity payments (or NFC payments)—which were launched in 2010-11—gathered a lot of attention but failed to take off until 2014 when Apple launched its Apple Pay NFC-enabled services. The launch of Apple Pay is seen as a major boost to NFC Payments and a host of other players have started to build their offerings (Ex.: Samsung Pay, Android Pay, etc.). There has also been a growth in the shipments of POS devices which are enabled to handle proximity payments, thus providing the infrastructure for handling NFC payments. These factors are considered to be boosting the proximity payments market and ultimately, the overall mobile payments space.