Mobile Money Market: A Snapshot

The mobile money market is a vast fragmented landscape with several regional, and international players playing a key role in shaping its growth. The rising advancements in technology, and lack of uniform standards in the industry continues to drive growth for new players in payment modes, and provides a wide array of opportunities in a wide range of payment options. Despite its fragmented nature, some key players in the mobile money market including: Bango.net Limited, Boku, Inc., Dwolla, Inc., Fortumo OÜ, Judo Payments, Paypal, Inc. (PayPal Holdings, Inc.), Square, Inc., Stripe, and WePay, Inc. continue to engage in innovation and acquisitions to drive growth. The rising opportunities in established sectors like hospitality and tourism, BFSI, Telecommunication, and media and entertainment presents lucrative opportunities for growth for new entrants. Barriers to entry, and potential risks to disruptions remain really high in the market.

According to TMR experts, the mobile money market will register significant growth during 2016-2024, rising at 22% CAGR. The market reached a valuation of US$17.25 bn in 2016, and its growth remains one of the most promising for new entrants.

SMS Payment Remains Most Promising Segment in Growth

The global money market report will feature various segments including SMS payment, NFC, mobile billing, USSD, among others. Among these, the SMS segment is expected to witness largest expansion due to growing preference of millenials to prefer non-human interaction over direct human ones. The trend is apparent in various other industries including customer service, where non-human help modules like IVR, online troubleshooting forms, and chatbots continue to replace human interactions. The SMS service is also expected to make major headways as it remains most cost-effective, and reliable over availing third-party platforms for businesses. The growth of SMS segments will drive incredible growth for mobile money market in near future.

Payment and Money Transfer to Remain in Dominant Position

Payments and money transfer made serious gateway in the market as online transfers provided a convenient option for people to interconnect, and reduce dependence on physical means of banking. The segment remains promising, however airtime transfers, and top-ups are expected to top the charts during the forecast period as growth for these is witnessing growth at the highest CAGR. Among end-sectors, the healthcare sector is expected to lead growth, however, hospitality, and BFSI, and energy also show promising prospects in near future. Increasing initiatives by governments around the world to digitalize energy consumption to drive energy efficiency, and increased use of sustainable energy promises new opportunities for growth for players in the mobile money market. Recently, UK ordered digitalization of all existing meters in the country, which is expected to up digital linking with mobile wallets in near future.

Asia Pacific and North America to Dominate Growth in Mobile Money Market

Segments like SMS payments are already witnessing a major growth in regions like Asia Pacific. The trend is extremely popular, and continues to make huge headways for enterprises. Additionally, the segment is also expected to witness major growth in North America region. The larges-scale commercial operation in the US, and promising penetration of platforms like PayPal prohibits growth of the growth new channels in North America. However, thanks to large demand in banking, telecommunication, and especially healthcare, the market will witness dominant emergence of North America region during the forecast period.