The mobile commerce solution market enables consumers to securely purchase goods and services directly from a mobile handset or tablet. It offers various advantages such as convenience, flexibility, and enhanced customer experience. With rising smartphone penetration globally, the demand for contactless payment solutions is increasing significantly. Mobile commerce allows users to make payments by tapping or waving their smartphones near a payment terminal, eliminating the need for cash, cards, or checks. This introduces swift, safe, and easy payment experiences for consumers.
The Global Mobile Commerce Solution Market is estimated to be valued at US$ 534.06 Bn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the mobile commerce solution market are Alibaba Group Holding Ltd., Ericsson (Telefonaktiebolaget LM Ericsson), Gemalto (Thales Group), Google LLC, IBM Corporation, Mastercard, Oxygen8, PayPal Holdings Inc., Salesforce, Inc., SAMSUNG, Softcard, SAP SE, Visa Inc., Mopay, and Office Depot Inc. These players are focusing on developing innovative products and solutions to meet the growing demand from end-use industries.
The rising adoption of smartphones and growing internet penetration are providing ample opportunities for players in the market. Also, the increasing collaboration between payment processors, telecom companies, and handset manufacturers is expected to drive the adoption of Mobile Commerce Solution Market Share.
Geographically, the market is dominating by North America owing to advanced infrastructure and early adoption of new technologies. However, Asia Pacific is expected to witness the highest growth due to rising internet and smartphone users in developing countries such as China and India. Furthermore, growing e-commerce sales and improving payment gateway infrastructure will support the regional expansion of the mobile commerce solution market.
Market Drivers
Increasing Demand for Contactless Payment: With the rise in public awareness about hygienic payment options, the demand for contactless payment through mobile devices is growing significantly. Mobile commerce allows users to tap or wave their phones to make swift payments without touching physical terminals during the COVID-19 pandemic. This is a major factor contributing to the growth of the market.
PEST Analysis
Political: Mobile commerce solutions adoption is influenced by data privacy and cybersecurity regulations across different countries and regions. Rules around digital payments and online transactions also impact the market growth.
Economic: Rising internet and smartphone penetration worldwide along with increasing consumer preference for contactless digital payments are driving the demand for mobile commerce platforms from various industries.
Social: Younger demographic cohorts are highly technology-savvy and prefer using their mobile devices for shopping, banking, and other financial services. Their growing spending power contributes to the social acceptance of mobile commerce.
Technological: Advancements in near-field communication (NFC) technology, artificial intelligence, augmented reality, and 5G network rollout are enhancing the overall user experience of mobile shopping and payments. Technologies like digital wallets and mobile point-of-sale (mPOS) terminals are facilitating seamless mobile transactions.
In terms of value, the mobile commerce solution market is highly concentrated in Asia Pacific region due to high smartphone adoption and growing internet usage in countries like China, India, and Southeast Asian nations. North America is another lucrative geographical region owing to established digital payment infrastructure and presence of leading technology companies offering mobile commerce platforms in the US and Canada.
Africa region is projected to experience the fastest growth during the forecast period driven by increasing penetration of low-cost Android smartphones and rising awareness about contactless digital payment options in Nigeria, South Africa, Kenya etc. Lack of traditional banking infrastructure in rural areas complements the adoption of mobile financial services in Africa.
High spending on digital transformation initiatives across small and medium businesses bolsters the demand for mobile commerce platforms that allow easy online selling and inventory management. Mobile-based social shopping is gaining traction in South America especially in Brazil and Argentina due to strong e-commerce growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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