Mobile wallet transactions number in the European Union will experience a CAGR of 61.8% over 2016-2021, ensuring the revenue for the payments industry will pass the €1 billion bar by 2021, according to a newly published market research by Intelling.
Focusing on the ‘Pay’ mobile wallets, Apple Pay, Samsung Pay, Android Pay, Google Wallet, …, Smart Insights analyzes the evolution of the contactless cards and mobile payments market in the region. The report finds that, so far, financial institutions and mobile network operators have all plunged into mobile payments by introducing mobile wallets as a payment tool. However, none of them has actually met a wide consumer adoption.
According to key findings in the report, following years of largely unsuccessful pilots and commercial launches in Europe, tech giants have come with their own strategy and vision of how mobile payments should be organized. The ‘Pay’ companies have moved further, skimming the cream from already mostly implemented and ready contactless payments infrastructure. As they are steadily following their mWallet market vision and implementing their mPayments strategy in the US, tech giants’ mWallets will likely be effective in Europe as well.
Thierry Spanjaard, CEO of Smart Insights explains: “Even in a time of increased competition and more challenging markets, the entrance of the electronics giants Apple Samsung and Google on the European market is bound to demonstrate its efficiency and profitability.”
“Although we see a growing adoption of tech giants’ mWallet initiatives in their home markets, companies like Apple, Google and Samsung have to adapt their mWallet business models to the specifics of the European market,” continues Artur Khakimov, industry analyst for Smart Insights and author of the report.
“Indeed, the report shows these tech companies have already set up necessary modifications ahead of the European launch.”