Global spend via mobile wallets is expected to rise by nearly 32% this year to US$1.35 trillion. That is according to a new study from Juniper Research. The study, Mobile Wallets: Service Provider Analysis, Market Opportunities & Forecasts, found that spend is currently concentrated in the Far East and China, due primarily to the success of Alipay and WeChat. However, it claimed that moves by PayPal and Apple to offer wallets which can be used both instore and online means that wallets will increasingly become the default payment mechanism in other markets. The research, which forms the most comprehensive report on the wallet industry available in the market, highlighted PayPal’s decision to introduce an HCE (Host Card Emulation) NFC solution to enable POS payments as a key disruptive moment in the wallet wars. According to the research, this – allied to the burgeoning success of its social payments subsidiary Venmo – places PayPal in pole position to capitalise on the increased demand for mobile wallets. Indeed, the company classified PayPal as the “Established Leader” within its Mobile Wallets Leaderboard, which provides a comparative assessment of wallet providers including Alipay, Apple, Mastercard, Paytm, Samsung and WeChat. Additionally, the research argued that the implementation of the PSD2 (Payment Services Directive 2) legislation should spur further competition within the European wallet space, with existing players poised to introduce additional services to complement their payment offerings. However, it warned that outside emerging markets, remaining mobile network operator wallet ventures were unlikely to gain traction. According to research author Dr Windsor Holden, “Network operators remain wedded to offline payments based on an NFC SIM card, at a time when more agile competitors are deploying integrated HCE wallets that also enable online usage.” The complimentary whitepaper, ‘War of the Wallets’, is available to download from the Juniper website together with further details of the full research and the attendant Interactive Forecast Excel (IFxl). Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow
Global mobile wallet spending will rise by nearly 32% in 2016 to $1.35tn, according to a study by Juniper Research. Currently, spending is concentrated in the far east and China with Alipay and WeChat, but, as PayPal and Apple services become more widespread, wallets are expected to become the default payment mechanism in other markets. The report also found that global payments volume grew at an annual rate of 11% from 2012 to 2014, reaching $16.5bn (£11.3bn). The implementation of the Payment Services Directive 2 legislation in Europe will also spur growth.