The global payment industry has gone through a massive change over the past decade, with more and more people utilising the benefits of innovative financial technologies.
The global shift towards a cashless society produced a massive space for mobile wallets as a new, safer, and more convenient way of making payments. With the coronavirus outbreak, electronic payments became even more appealing as people started questioning the safety of using banknotes for fear of transmitting the virus.
According to data gathered by Finanso.se, the European mobile wallet market is set to reach $48.1 bn transaction value this year, growing by 37.3% year-on-year. The strong upward trend is expected to continue in the following years, with the market reaching $111.4 bn value by 2023.
Market value jumped 175% in three years
Mobile wallets eliminated the need for carrying money while reducing the chances of theft or losing currency. These conveniences had been driving the impressive growth of the European market, in both business and consumer segment.
In 2017, the European mobile wallets market was worth $17.4bn, revealed the Statista survey. Over the next twelve months, the transaction value increased by nearly 45% and reached $25bn. The strong rising trend continued in 2019, with the value jumping to over $35bn. Statistics show transaction value in the European mobile wallets market increased by 175% in the last three years.
Recent years have also witnessed a surge in the number of mobile wallet users across Europe. In 2017, nearly 34.5m Europeans had been using this contactless payment method. This number grew by more than 50% in the last three years, reaching 51.7m in 2020. Statistics show the upward trend is set to continue in the following years, with the number of users jumping over 63m by 2023.
The average transaction value per user in the European mobile wallets market amounts to $931 in 2020. By the end of 2023, this amount is expected to increase by 90% and reach $1,768.
Analysed by geography, the United Kingdom represents the leading European mobile wallet market expected to reach $14.9bn transaction value in 2020. With over $4bn worth mobile wallet transactions this year, Russia ranked as the second-largest market in Europe. Spain, Sweden, and France follow with $2.6bn, $2.5bn and $2.3bn worth transactions, respectively.