The mobile wallet market is about to get big, huge even. According to a new report published by Transparency Market Research, the global mobile wallet market will reach $1,602.4 billion by 2018. In EMEA it will grow at a CAGR of 30.7 percent from 2012 to 2018 and EMEA will be the largest mobile wallet market in the world by 2018.
EMEA accounted for about 40 percent of the global mobile wallet share in 2011, but the Asia Pacific region is expected to see the fastest growth over the next five years.
The staggering figures sound optimistic to say the least, but Transparency Market Research is basing them on a few emerging trends that hold a lot of promise. The outfit found that affordable NFC enabled phones and POS (point of sale) systems will be the main drivers of growth over the next few years.
Retail is currently the biggest application for mobile wallet services and the trend is set to continue, due to ease of payment using smartphones and initiatives to introduce new POS terminals in convenience stores. Vending machines are also a potent market. Mobile network operators are expected to play a pivotal role in future mobile wallet adoption.
Unsurprisingly, the key players in the market will be Visa, MasterCard, American Express, PayPal, Google and others from the list of usual suspects.
However, it won’t be just smooth sailing. Quite a few consumers still don’t know how mobile wallets actually work and we’re pretty sure that many aren’t even aware of their existence. Security and privacy remain sources of concern, too.