Mobile Commerce Predicted to Grow by 250% Over 5 Years
Euromonitor defines m-commerce as consumer payments through their mobile device, either through an app or at a POS (point of sale) terminal. Both the shift of retail to online channels and the greater POS acceptance have driven substantial consumer adoption and contribute to significant forecast growth of total value. Infact, m-commerce value is projected to increase by 250% over the next five years, increasing from USD1.9 trillion in 2018 to USD 4.3 trillion by 2023.
Growth is being driven by consumer adoption in the US and China, which combined are projected to account for 75% of m-commerce growth. Widespread adoption of smartphones as well as the capabilities of the devices has changed the way consumers research, shop and purchase products. The conversion of retail has enabled non-traditional technology companies access to the payment landscape.
Despite investment in proximity payments, the growth of m-commerce is expected to primarily be on remote channels. However, as a share of total m-commerce, proximity payments are expected to increase from 17% in 2018 to 28% by 2023.
Currently the majority of m-commerce remains tied to a financial card that is loaded to a digital wallet or entered manually into merchants’ websites. This could change if a digital platform is able to provide an incentive for consumers to link a financial account.
Download our Global Consumer Finance Landscape white paper to learn more about trends disrupting the way consumers pay for goods and services. Use it to identify markets offering opportunities for traditional card and electronic payment companies as well as mobile network operators and fintech companies.