While cash continues to be the bedrock of consumer transactions in the EU-7, mobile payments will almost triple over the next five years (a compound annual growth rate [CAGR] of almost 23%), vaulting from $52 billion at the end of 2015 to $148 billion by 2021. This is according to new Forrester data, per our recent Mobile Payments Forecast, 2016 to 2021, which advises that this growth is due to increasing consumer awareness and growing retailer interest in mobile payments, providing a positive backdrop for mobile payment growth.
Forrester’s research defines mobile payments as comprising of the following three types: mobile in-person payments; mobile remote payments, such as purchasing via an app when the consumer isn’t physically present with the seller; and person-to-person or peer-to-peer (P2P) payments. Other key findings of this new forecast include:
- Mobile in-person payments will grow the fastest. The proliferation of mobile devices capable of in-person mobile payments, coupled with the popularity of contactless payments and the number of mobile payment launches, will drive greater interest and traction. This will increase almost fivefold between 2016 and 2021, from $4.6 billion in 2016 to $22.8 billion in 2021, accounting for nearly 16% of all mobile payments in the EU-7.
- Mobile remote payments remains the largest segment. Mobile remote payments will see healthy growth over the next five years and will continue to remain the largest mobile payments segment by some margin. It is expected to grow at a healthy CAGR of 20%, and will account for two-thirds of mobile payments at the end of 2021. In-app and in-browser payment buttons will account for an increasing proportion of this.
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