The North America mobile wallet market is set to grow from its current market value of more than $23bn to over $80bn by 2026; as reported in the latest study by Graphical Research.
Rapid proliferation of smartphones and increasing internet penetration will help drive the North America mobile wallet market over the forecast time period. Additionally, increasing inclination of consumers towards digital payment methods will greatly stimulate mobile wallet market in the region.
In fact, more and more consumers in the United States are using mobile banking to manage their account information and to make their transactions.
Numerous financial establishments across the North America are focusing on enhancing their customer experience, while providing a personalized experience to their users. Customers from North America are considered the heaviest digital payment channels users in the world.
Subsequently, banks are developing basic economical services for users using branchless banking, which is enabled by point-of-sale as well as seamless mobile payment-based technologies.
Based on type, the closed mobile wallets segment will witness a CAGR of more than 20% over the forecast time period. Due to the growing prominence of numerous data security problems, associated with mobile wallets provided by third-party vendors, device manufacturers and e-commerce players are rolling out their own closed mobile wallets.
Moreover, a majority of mobile wallet participants do not have a risk mitigation plan, nor a comprehensive cyber insurance policy. This in turn makes them highly susceptible to financial losses in the event of cyber-attacks. This in turn has encouraged consumers to shift towards closed mobile wallets that have the security infrastructure needed to protect them from the increasing number of cyber threats.
With respect to technology, the digital-only segment is likely to witness a respectable CAGR of over 20% through the forecast time period. This anticipated growth is ascribed to the rising adoption and acceptance of mobile payment methods to enable transactions from far off places. These growth trends are further encouraging numerous firms to invest heavily in the development of digital-only-based mobile wallets.
These wallets store the information of the cardholder in the mobile by storing relevant debit & credit card credentials and reward point info. Moreover, technological advancements have further enabled the providers of mobile wallet to incorporate biometric technology into the mobile wallets, making them more convenient and safer.
On the regional front, the mobile wallet industry in Canada is expected to grow at a CAGR of more than 20% by the end of the analysis timeline. Financial organizations across the country are offering an extensive range of products and services along with numerous ways to avail these services. Subsequently, the consumers in Canada are also adopting several digital banking channels.
In fact, it is estimated that nearly 68% or two-thirds of the people in the country conduct most of their banking digitally, using mobile and online banking. Branch as well as ATM banking are becoming less popular over the years in the region. Whereas mobile payments continue to grow increasingly and are becoming as one of the most valued methods of performing an extensive variety of banking transactions.
Prominent players in the North America mobile wallet market are Google LLC, Due Inc., Wells Fargo & Company, Mastercard Incorporated, Amazon.com, First Data Corporation, J.P. Morgan Chase & Co., AT&T Inc., Visa Inc, American Express Company, PayPal Holdings, Inc., and Apple Inc. among many others.
Key market players in the North America mobile wallet market are forming new partnerships with numerous merchants in order to surge the use of mobile wallet offerings. Subsequently, device manufacturers as well as banking organizations like Apple and Chase Pay are offering new growth offers to boost the usage of their mobile wallets among merchants and numerous ecommerce channels.