What’s Driving the Future of the Mobile Payments Market?

October 7, 2016         By: Steven Anderson

Less than three months remain until the close of 2016, and a new report from Euromonitor International is providing some prime food for thought.

Its newest study took a look at the mobile payments market so far, and what’s likely to shape that market in the next several months to come, and beyond.

One big point is that China will be an increasingly large market for mobile payments. China alone represented 58 percent of mobile commerce in the 46 separate markets that Euromonitor studied, and is expected to reach $559.6 million annually this year alone.

That’s staggering when you think about it; 45 markets together made up just 42 percent of the market.

However, another key trend is the “mobile-first” mindset that’s spreading throughout the United States and United Kingdom. We recently saw how contactless payments are gaining in a big way in the UK, though the US is still often seen lagging behind.

An increasing market for services is likewise raising mobile payment growth all around. With mobile payments users more likely to use mobile payments for tickets, or downloads, or food service delivery, increasingly popular services mean more opportunities to use mobile payments.

What’s more, younger generations are increasingly turning to mobile payments, and as younger generations—who are approaching their prime earning and spending years—put a service to use, so too does its importance upgrade. Millennials are heavily into mobile payments, and while there are signs that Generation Z, immediately following the millennials, isn’t quite so interested, there’s still plenty of interest.

Naturally, many other factors will play a role in the growth of mobile payments, but all these combine to suggest a very big market ahead. As millennials and Gen Z kids grow into their peak spending, as the Chinese market swells, as the markets where more people are likely to use mobile payments grow as well, the end result should be a much larger market for mobile payments than we even have right now.

The conditions will be excellent in months to come for mobile payments, but the tools will have to be ready to go as well. Continuous development will be necessary to make the best in mobile payment systems, but it’s clear the market is ready for these to be on hand.