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APAC mobile wallets market to garner substantial returns from India, rising trend of cashless transactions to impel the industry share

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The Asia Pacific mobile wallet market is poised to garner commendable gains in the coming years primarily driven by  the rising penetration of smartphones and growing number of internet users in the region. According to Ericsson, there are presently over 2.6 billion smartphone users worldwide, and by 2020 the number is estimated to grow to 6.1 billion users, driven by substantial growth in less mature markets.

India Mobile Wallet Market Share, By Type, 2017
India Mobile Wallet Market Share, By Type, 2017

Ericsson further predicts that emerging markets, including the Asia Pacific, will account for 80 percent of overall new subscriptions in the coming years. However, the emergence of smartphones has dramatically changed the way people use internet, making it a one-stop solution for all the needs, including financial transactions. Somewhere around four years back, Ericsson also claimed that mobile data usage would observe tenfold growth by 2020, and Asia Pacific would contribute to around 45% of that growth. It does not come as a surprise therefore, that APAC mobile wallets industry share is on a steady rise of late.

In addition to rising internet and smartphone penetration, increasing awareness of mobile payments has also resulted in more and more Asian nations shifting from cash payments to cashless transactions for an array of services. The all-in-one payment experience provided by mobile wallets has redefined the way customers carry-out their everyday payment activities. Online as well as offline promotion of mobile wallets has significantly contributed to the growing popularity of mobile wallets which has encouraged more websites to accept them as a form of payment, thereby expanding the APAC mobile wallets market size.

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One of the major reasons for the upsurge in the popularity of mobile wallets is acceptance and usage by the region’s youth population. Countries like India are considered to be a key battleground for digital payment providers owing to its massive population, comprising of young and tech-savvy individuals with smartphones and high-speed internet connectivity. According to the YouGov-Bernstein Proprietary survey, mobile wallets have displayed high acceptance among the urban youth with 89% claiming to use mobile wallets of some form or the other. Considering, the increasing adoption for digital services by tech-savvy youth across the region, the Asia Pacific mobile wallet market is forecast to observe lucrative growth over the coming years.

Apart from the abovementioned factors, some government initiatives and reforms have also had a significant impact on the remuneration graph of the mobile wallet industry over the last few years. A classic example for the same includes India’s demonetization of INR 500 and INR 1000 notes, which amplified the adoption of cashless payments by leaps and bounds in the nation. Post demonetization, India saw rapid adoption of mobile wallet apps like Paytm, PhonePe, Mobikwik, and Freecharge. Moreover, in November 2017, India witnessed 105 million UPI-based transactions, which then grew to 482 million in 2018 as against 0.2 million in 2016. Driven by supportive government initiatives and industry reforms, the India mobile wallet market is estimated to grow at a CAGR of around 30% over 2018-2024, according to a research report by Global Market Insights, Inc.

The Asia Pacific is one of the foremost marketplaces for e-commerce globally and is highly anticipated to lead the way in the global transition to mobile commerce. According to payment processing company Worldpay, mobile is the fastest growing sales channel in China reaching a compound annual growth rate of 12%, while in Hong Kong mobile commerce is poised to become the most popular shopping channel in the coming months with it accounting for more than 50% of all online sales. The exponential growth in mobile shopping will have a definite impact on the Asia Pacific mobile wallet market, as more and more customers seek quick payments options without having to enter credit card information.

Powered by an array of factors such as affordable smartphones, emerging middle-class, high network speeds, and decline in mobile data costs the Asia Pacific has established itself as a mobile-first region. Considering the increasing popularity of mobile wallets, market players are also integrating newer features and services for mobile payments, which indicates mobile wallets would continue to become more ubiquitous in the Asia Pacific marketplace. In terms of industry growth, the APAC mobile wallets market is estimated to surpass $140 billion by 2024.

Author NameKrithika Krishnan

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Outlining mobile wallet market trends from a regional perspective: global industry set to surpass a valuation of $250 billion by 2024

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The worldwide mobile wallet market has positioned itself to be an extremely lucrative consumer-driven vertical, propelled by the attractive discount & cashback offers facilitated by service providers. Indeed, mobile wallet providers across the world have been impressively successful in attracting and retaining customers, growing their respective user-base at an exponential rate in the process, by simply offering their consumers frequent & appealing cashback offers and discounts. The entire cycle of discounts and cashbacks has proven to be extremely beneficial for both customers, who can obtain a plethora of products & services at a reduced rate, and mobile wallet service providers, who are able to be the recipients of profitable business from their patrons.

U.S. Mobile Wallet Market Revenue, By Type, 2017 & 2024
U.S. Mobile Wallet Market Revenue, By Type, 2017 & 2024

While these frequent cashback offers may seem to be counterproductive for the growth of the mobile wallet industry, it actually reduces the cost of customer acquisitions by allowing companies to lower the amount they spend on marketing their respective products & services to the customers.

Unveiling APAC mobile wallet industry trends

Across the Asia Pacific, where the penetration of smartphones is supposedly the highest, consistent efforts taken by the regional governments towards realizing the goal of being cashless have benefited the mobile wallet market in a profound manner. The dense concentration of smartphone users and the government efforts toward establishing a cashless economy is so extensive that in 2017, APAC was known to have captured a sizable proportion of the global mobile wallet industry share.

According to a report by Disruptive Asia, the most common denominator behind the market’s unprecedented growth in APAC is the sheer penetration the smartphone industry in the region is witnessing. Mobile wallet service providers have been able to capitalize on this lucrative opportunity by developing cost-effective & ubiquitous smartphone application-based as well as online solutions for customers across the region. In fact, according to a 2018 report by Merchant Machine, Asia’s home-grown mobile payment platforms, WeChat Pay & Alipay were able to effectively grow their user base to 600 million & 400 million respectively, significantly outperforming industry veteran PayPal which had over 210 million users that year.

While the region’s mobile payments market is being led by the countries such as South Korea, Japan, Singapore, Australia and China, the country with the largest mobile wallet user base is China, with more than 45% of the nation having used this payment service in 2018 for their daily transactions. Augmented by the extensive popularity of this payment method, APAC mobile wallet market is set to depict an unprecedented growth rate over 2018-2024.

Unveiling Europe mobile wallet market trends

The mobile banking sector in Europe has been evolving at a commendable pace over the previous five years. This trend could be attributed to the increasing prominence of a plethora of international as well as domestic entities competing with each other through their mobile wallet services in an attempt to capture a profitable chunk of the global industry. Moreover, the collaborative efforts of the region’s technology-oriented enterprises and the banking establishments have also been acknowledged as a factor that is responsible for expediting the Europe mobile wallet market growth.

Meanwhile, the European Commission has been working diligently to develop an integrated & efficient payment services market across the European Union. The EU has adopted a new payment services directive in January 2018 to make internet payment services safer & easier to use and also to promote innovative internet & mobile payment services that would prove extremely beneficial for the Europe mobile wallet industry. Owing to these conducive factors, the Europe mobile wallet market is slated to grow at an impressive CAGR of more than 15% over 2018-2024.

These regional trends quite clearly indicate that the global mobile wallet market is anticipated to attract numerous investors in the upcoming years. In fact, a research report from Global Market Insights, Inc., projects that the overall mobile wallet market size will be surpassing the renumeration mark of $250 billion by 2024.

Author Name : Akshay Kedari

APAC barge transportation market to acquire substantial returns by 2024, rising demand for petroleum products in the region to drive the industry expansion

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Barge transportation market has indeed gained a velocity in the past few years, and is in the midst of experiencing a profound commercialization portfolio, primarily driven by the escalating crude petrochemical shipments across the world. In this regard, it is important to note that U.S. and Japan are the two major economies where crude oil demand is significantly high, which quite aptly translates the profitability quotient of the barge transportation market in these regions. In fact, Asia Pacific is forecast to procure a significant portion of the overall industry, with a massive revenue collection by the end of 2024. However, North America is also slated to emerge as a crucial regional barge transportation market, on account of the rising shale oil production.

U.S. Barge Transportation Market, By Product, 2013-2024, (USD Million)

U.S. Barge Transportation Market, By Product, 2013-2024, (USD Million)

Global barge transportation industry, estimated by Global Market Insights, Inc., is claimed to surpass USD 170 billion by the end of 2024. Growing investments in fleet modernization and increment in the barge number has substantially driven the market dynamics over the years.  For instance, Kirby Corporation, one of the renowned barge transportation market giants, had spent almost USD 135 million in 2014 for the construction of 66 new island barges. Mergers and acquisitions is another strategy that the industry participants are readily adopting to consolidate their business position in the competitive space.

The yesteryear acquisition of SEACOR Holdings’ inland fleet by Kirby Corporation from subsidiaries of SEACOR at approximately USD 88 million bears a testimony to the aforementioned fact. Reportedly, the asset purchase will include 13 inland towboats, 27 inland 30,000-barrel tank barges, and one towboat which is presently under construction. Under the agreement, Kirby would transfer SEACOR Holdings the ownership of Florida based ship docking tugboat. On the other hand, SEACOR, through SCF Waxler Marine LLC, would transport petrochemicals, black oil, and refined petroleum products on Gulf Intracoastal Waterway and Mississippi River System. Analysts claim this move by Kirby Corporations to be highly strategic, projecting the company to score a competitive advantage in the global barge transportation industry.

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Some of the other biggies involved in barge transportation market include American Commercial Barge Line, Campbell Transportation, Blessey Marine Services, Canal Barge, PTC Logistics, and Heartland Barge.  The overall industry is restrained by some of the crucial factors such as huge initial cost associated with fleet construction, limitations of international water ways, and climatic conditions. However, leading companies are continuously focusing on overcoming these challenges as much as possible by incorporating technology in the business module. For instance, GPS integration has helped the operators get a clear picture of the climatic conditions and the delivery time.

Outlining Asia Pacific barge transportation industry trends over 2018-2024

Asia Pacific is one of the most lucrative regional markets for barge transportation industry. Indeed, APAC barge transportation industry held USD 34 billion in 2017, accounting for the highest revenue of the market share, primarily driven by the rising foreign exchange and trade activities. Furthermore, the growing number of oil imports from the Middle East and North America will add to the industry growth.

Another factor that will add to the growth of the APAC barge transportation industry is the availability of huge waterways in addition to the escalating vessel freight traffic, especially alongside the coastal areas. As per estimates, Asia Pacific barge transportation market shipments will be 5.5 billion tons by 2024.

Powered by a plethora of unprecedented technological advancements and the escalating demand for petrochemical and agricultural shipments, barge transportation market is expected to chart an appreciable growth in the coming years. Global Market Insights, Inc., anticipates the overall barge transportation market size to register a CAGR of 5% over 2018-2024.

Author Name : Saipriya Iyer