Factors Likely to Drive Global Mobile Wallet Market Expansion
2 Min Read By Saloni Walimbe
With increasing restrictions on public movement and offline retail operations, the growing demand for online shopping amid the COVID-19 pandemic is propelling global mobile wallet industry growth. The growing preference for contactless payment methods over the traditional payment systems to curb the virus spread is supporting the adoption of digital wallet payment systems. It has been estimated that credit-card giant, Mastercard observed a 40 percent jump in contactless payments, comprising tap-to-pay and mobile pay in the first quarter of 2020 as a large number of shoppers feared germs on cash and credit cards.
As per a recent report by Global Market Insights, mobile wallet market size is projected to exceed USD 700 billion by 2027.
Surging Deployment in the Restaurant Industry
Mobile wallets are expected to record a strong footprint in restaurants on account of the ongoing concerns over sanitation as well as minimizing contact between customers and staffers. This payment method makes it easy for customers to pay for their meals instantly while helping the restaurants attract a larger audience and build a strong loyalty base. For instance, Starbucks has been profoundly using mobile payment solutions to reinforce its public image and create high industry standards in customer services.
The increasing adoption of existing mobile payment methods, including Apple Pay, and Google Pay, among others, has limited the hassle for hotels and restaurants to develop their apps. Rising advancements in mobile app development technologies will also boost the preference for mobile-payment solutions.
According to the 2021 State of the Restaurant Industry Report released by the National Restaurant Association, some 40 percent of restaurant operators across six dining models (family dining, quick service, casual dining, fast casual, fine dining, and coffee and snack) mentioned that they added a contactless or mobile payment option.
Mobile wallet providers offer attractive discounts and cashback to encourage maximum transaction through this digital payment system. They also provide customers the facility to save and store discount coupons and loyalty gift cards for future transactions.
Sometimes, these coupons and discounts are provided with unique codes and QRs that can be availed on specific purchases or offers. Across the hospitality and restaurant sectors, mobile wallets are increasingly adopted to offer enhanced customer convenience and comfort. Nowadays, digital wallet providers are also engaging customers with several point-based Q&A sessions, quizzes, and loyalty programs, which can be redeemed while using mobile wallets.