Unbanked Mobile Payment Market Will Reach $493B by 2027

The “Mobile Payments Market by Technology (SMS, Beacon, NFC), Location (Proximity and Remote), Device (Smartphone, Wearable, Implantable, others), User Type (Banked, Unbanked, and Underbanked) and Solutions 2022 – 2027” report has been added to ResearchAndMarkets.com’s offering. 

This report evaluates leading mobile payment companies, strategies, and provides a market outlook with forecasts for 2022 to 2027. This includes analysis by technology, payment location, device type, payment type, and industry vertical.

The report also assesses the mobile payments market for “unbanked” or “underbanked”, which is the norm for many in developing countries as well as those between the lower middle class and the poverty segment in developed countries.

Select Report Findings

  • Underbanked segment is a key segment for developed countries 
  • Unbanked segment is the primary market in developing countries 
  • Global unbanked mobile payment market will reach $493B by 2027 
  • Majority of mobile payments by volume and value occurs in Asia-Pacific
  • Next-gen payment technologies will be omnipresent by device and apps 
  • Implantable tech used for personal security will be leveraged for payments

The amount of mobile/wireless commerce has grown dramatically in recent years as evidenced by nearly 20% of all payments in the United States involving some form of contactless system. However, the USA pales in comparison to some other countries, such as India, where the wireless payments industry is experiencing exponential growth, albeit 4 out of 5 transactions represent low-value consumer-to-consumer mobile payments.

The use of a mobile phone and other untethered devices to conduct commerce is a natural extension of the online commerce evolution. A vast majority of these transactions rely upon some form of account settlement that usually involves credit or debit cards, checking/ACH, or bank money transfer. However, other options are emerging with the evolution of distributed finance solutions.

Mobile payment systems have typically relied upon the use of an account system, which requires funding that can come from many different sources including a bank account, credit/debit card system, or a mobile wallet, which may be funded by various means. We also see merchant subsidization as a means of funding mobile wallets, particularly for the unbanked segment.

Mobile payments are experiencing rapid growth as consumers use wireless devices as part of modern dynamic lifestyles. Many merchants increasingly support and encourage mobile payments because they are quick, easy, and linked to existing, well-known financial processing systems. The use of mobile payments represents an alternative to cash, cards, and even funds within the banking system. This is especially the case in developing countries where current banking services cannot reach and/or have limited access.

The unbanked population refers to the section of the population that doesn’t have any relationship with normal banking services; they don’t have savings or checking accounts. The main reason for the existence of the unbanked population is low income. Underbanked population refers to the section of the population that have a banking relationship (checking or saving account), but use an alternative method of financial interaction rather than payments through their banking accounts.

Economic challenges are persistent in developing countries with great variation between different countries. In India for example, the unbanked population resides mostly in rural areas, spread over a wide area in a number of villages. This unbanked population is often poor, and hence the transactions performed through mobile banking solutions tend to be low value, as compared to metropolitan areas.

In terms of payment models, the bank-centric method in which traditional financial institutions are relied upon for clearing and settlement, is rapidly being replaced by various third-parties in a more decentralized model that at times may involve settlement by non-financial service providers, or on a peer basis, and/or a collaborative model. The latter model consists of collaboration among banks, mobile operators and other stakeholders in the mobile payments value chain, including a potential trusted third party that manages the deployment of mobile applications.

While technologies used for mobile payments vary considerably, all provide solutions that provide ease of use for both remote transactions (e.g. not at the point of sale) as well as contactless payments for proximity-based payments. One such technology used for localized mobile payments is a Radio Frequency Identification (RFID) approach referred to as Near Field Communications (NFC).

NFC payment solutions enable commerce worldwide. Consumers don’t have to carry a wallet, cash, credit cards, or debit cards, and they don’t need a mail routing box to receive plastic cards and bills. Increasingly, mobile phones include built-in NFC technology to interact with other mobile phones with NFC technology in addition to retail point-of-sale terminals, digital signage and vending machines that dispense tickets, mobile devices, soft drinks, sunscreen, and toys. NFC is a successful technology for high-speed high-volume applications that is well-suited to consumer payments, especially micro-payments. 

Key Topics Covered

1. Executive Summary

2. Introduction
2.1 Mobile Payment Overview
2.2 Mobile Payment Industry Roadmap

3. Mobile Payment Technologies and Solutions
3.1 Mobile Payment Models
3.1.1 Remote Payment Model Short Message Service Mobile Web Payments Direct Mobile Billing Unstructured Supplementary Service Data
3.1.2 Proximity Payment Considerations QR Codes Near Field Communications Beacon Technologies Biometrics Micro Currency Payments
3.2 Cloud-based Payments vs. NFC Payments
3.3 Customer Loyalty and Mobile Payments
3.4 Virtual Cart and Sensor Fusion
3.4.1 Computer Vision
3.4.2 Artificial Intelligence
3.5 More on Contactless Payment Solutions
3.5.1 Bluetooth Low Energy
3.5.2 Body Sensor Networks
3.5.3 Host Card Emulation Cloud Software
3.6 Implantable Payments
3.6.1 Smart Chips
3.6.2 Digital Tattoo
3.6.3 Implantable Smartphones and Holograms
3.7 Biometric Technology and Artificial Intelligence
3.8 Mobile Wallets in Payment Systems
3.8.1 Card Containers
3.8.2 Digital Bank Accounts
3.8.3 Mobile Payment Products
3.8.4 Micro-Currency Converters
3.8.5 True Mobile Wallets
3.9 Next Generation Payments
3.9.1 Wearable and Implantable Payments
3.9.2 Holographic Payments
3.10 E-Payment Processes
3.10.1 Payment Gateway
3.10.2 Payment Service Providers
3.11 Regulatory Framework
3.11.1 ISO/IEC 10536-1
3.11.2 ISO/IEC 14443-4
3.11.3 ISO/IEC 15693
3.12 Mobile Payment Market Drivers
3.12.1 Transition to Cashless Society
3.12.2 Serving the Unbanked and Underbanked
3.12.3 Persistent Use of Smartphone and Mobile Commerce
3.12.4 Hassle Free Low-Value Transaction Support
3.12.5 Rise of Proximity Payments
3.13 Deployment and Operational Considerations
3.13.1 Emerging Payment Channels
3.13.2 Security Challenges
3.13.3 IoT Adoption and Artificial Intelligence
3.13.4 User Data Breaches
3.13.5 Low vs. High-Value Transaction Interface
3.13.6 Peer-to-Peer (P2P) Payment
3.13.7 Alternative Currencies

4. Mobile Payments Ecosystem
4.1 Mobile Payment Applications
4.2 Mobile Payments Value Chain
4.2.1 Payment and Processing Application Providers
4.2.2 Bank and Smart Card Providers
4.2.3 Payment Network Providers
4.2.4 Infrastructure and Security Solution Providers
4.2.5 Merchant and Consumers
4.3 Mobile Payment Technology Solutions
4.3.1 Payment Processing Solutions
4.3.2 Cloud Application Solutions
4.3.3 Mobility Management Solutions
4.3.4 Data and Analytics Solutions
4.3.5 Security Solutions
4.4 Mobile Payment User Interfaces
4.5 Mobile Payment Ecosystem Development
4.5.1 Historical Development
4.5.2 PoS Terminal Evolution
4.5.3 Merchant Customer Exchanges
4.5.4 Major Vendor Options Apple Pay Google Pay PayPal
4.5.5 Government and Regional Initiatives SJ Rail Offers Implantable Microchip Epicentre to Inject Microchip to its Employees SingTel with NETS to Open NFC Store MasterCard opens Innovation Labs MasterCard Partnership with AvidXchange SoFi and JetBlue Offer Student Loans Payment Solution Gemalto Cloud-Based Access Management Service Expensify and Bill.com Revamp Software SoFi on Launching Industrial Bank Lendio Partnership with Comcast Business 32M Partnership with BioHax Three Square Market Microchip Employees

5. Mobile Payment Company Analysis
5.1 Amazon.com Inc.
5.2 Google Inc.
5.3 Apple Inc.
5.4 M-Pesa
5.5 PayPal Holdings Inc.
5.6 Paypoint
5.7 Visa Inc.
5.8 Citigroup Inc.
5.9 Bank of America Corporation
5.10 American Express Company
5.11 Blackhawk Network
5.12 Euronet Worldwide
5.13 Evertec
5.14 Bitcoin (currency and exchanges)
5.15 Movencorp Inc.
5.16 MasterCard Incorporated
5.17 MoneyGram
5.18 MeaWallet
5.19 Verizon Wireless
5.20 AT&T Inc.
5.21 NTT DoCoMo Inc.
5.22 NXP Semiconductors
5.23 Qualcomm Incorporated
5.24 TNS Inc.
5.25 Gemalto N.V.
5.26 Samsung Electronics Co. Ltd.
5.27 Microsoft Corporation
5.28 Paytm
5.29 Alibaba Group Holding Limited
5.30 Fleetcor Technologies
5.31 First Data
5.32 SafeCharge
5.33 Global Payments
5.34 Total System Services
5.35 Western Union
5.36 Wex
5.37 Square Inc.
5.38 Stripe
5.39 Adyen
5.40 Fortumo
5.41 Orange SA
5.42 Vodacom Group Limited
5.43 Bharti Airtel Limited
5.44 MTN Group Limited
5.45 Tencent Holdings Limited
5.46 Facebook

6. Global Mobile Payments Market Analysis and Forecasts 2022-2027
6.1 Mobile Payment Transactions vs. Value 2022-2027
6.2 Mobile Payment Transactions by Type 2022-2027
6.3 Mobile Money and Banking Transaction Volume by Payment Mode 2022-2027
6.4 Mobile Payment Transaction by Industry Vertical 2022-2027
6.5 Remote vs. Proximity Mobile Payment Transactions 2022-2027
6.5.1 Remote Mobile Payment Transactions by Type 2022-2027
6.5.2 Proximity Mobile Payment Transactions by Type 2022-2027
6.6 Merchant vs. Peer-to-Peer Mobile Payment Transactions 2022-2027
6.7 Macro vs. Micro Mobile Payment Transactions 2022-2027
6.8 Mobile Banking vs. Mobile Wallet Payment Transactions 2022-2027
6.9 Cloud vs. Non-Cloud Mobile Payment Transactions 2022-2027
6.10 Mobile Payment Transactions by Traditional vs. Digital Currency 2022-2027
6.11 Mobile Payment Transactions by Digital Currency Type 2022-2027

7. Regional Mobile Payment Market Analysis and Forecasts 2022-2027
7.1 Mobile Payment Transaction Volume by Region 2022-2027
7.2 North America Mobile Payment Transaction Volume 2022-2027
7.3 Latin America Mobile Payment Transaction Volume 2022-2027
7.4 Europe Mobile Payment Transaction Volume 2022-2027
7.5 APAC Mobile Payment Transaction Volume 2022-2027
7.6 MEA Mobile Payment Transaction Volume 2022-2027

8. Additional Mobile Payments Market Analysis and Forecasts 2022-2027
8.1 Mobile Payment Solutions vs. Services 2022-2027
8.2 Mobile Payment Technology Solution Market by Segment 2022-2027
8.3 Mobile Payment Technology Service Market by Category 2022-2027
8.4 Mobile Payment Security Solution Market by Category 2022-2027
8.5 Mobile Payment Solution Providers 2022-2027
8.6 Mobile Payment by Service Providers 2022-2027
8.7 Mobile Payments by Device Type 2022-2027
8.7.1 Mobile Payments by Wearable Technology Type 2022-2027
8.7.2 Mobile Payments by Implantable Type 2022-2027
8.8 Remote vs. Proximity Payments Technology Spend 2022-2027
8.8.1 Remote Mobile Payments Technology Spend by Type 2022-2027
8.8.2 Proximity Mobile Payments Technology Spend by Type 2022-2027
8.9 Mobile Payments for the Banked, Unbanked, and Underbanked
8.9.1 Banked vs. Unbanked Users Mobile Payments by Transactions 2022-2027
8.9.2 Banked vs. Unbanked Users Mobile Payments by Value 2022-2027

9. Conclusions and Recommendations

For more information about this report visit https://www.researchandmarkets.com/r/ur4kqo

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