Proximity mobile payment is also called NFC mobile payment. NFC payment refers to consumers who use NFC technology (Near Field Communication) to complete payment through mobile phones and other handheld devices when purchasing goods or services. Payment processing performed on-site and offline without using a cellular network but using NFC radio frequency channels to achieve social communication with tools such as POS cash registers or vending machines. It is a short-range high-frequency wireless communication technology that allows non-contact point-to-point data transmission between electronic devices to exchange data.
The global proximity mobile payment market has the potential to grow with USD 700.4 billion, with historical CAGR in the forecast period from 2020-2027. The factors that are driving the market demand of global proximity mobile payment are emerging use of smartphones, rising short-range wireless communication technology, simple operation, and higher security features are propelling its market demand.
With the popularity of smartphones and the increasingly perfect electronic money payment system, mobile payment of small amounts of electronic money has become a vital payment method for people. Combining the characteristics of NFC communication technology, a mobile payment system based on NFC proposed. As a small-amount electronic money transaction method, the system is simple to operate and has higher security. It is suitable for daily payment in shopping malls, restaurants, and other service places, which will significantly facilitate people’s lives.
As consumers use wireless devices as part of modern dynamic lifestyles, mobile payments are experiencing rapid growth. Many merchants are increasingly supporting and encouraging mobile payments because they are fast, easy, and associated with existing well-known financial processing systems. The use of mobile payments is an alternative to cash, cards, and even funds in the banking system. It is especially true in developing countries where current banking services cannot reach and have limited access.
In terms of payment models, traditional third parties quickly replaced the bank-centric approach. In this model, conventional financial institutions begin to clear and settle. This model is more decentralized and may sometimes involve settlement through non-financial services Providers, or on a peer-to-peer basis, and collaboration models. The latter model consists of a collaboration between banks, mobile operators, and other stakeholders in the mobile payment value chain, including potential trusted third parties that manage the deployment of mobile applications.
Furthermore, the technologies used for mobile payments vary widely. Still, all technologies provide easy-to-use solutions that can use for both foreign transactions and contactless payment based on proximity Pay.
Additionally, the expansion of mobile payment overseas business mainly relies on cooperation with companies in shopping, attractions, and other scenarios to provide the underlying payment technology and smart ecological solutions. Mobile payment improves convenience for users to complete payment and optimizes cash register efficiency for merchants. At present, the mobile payment industry is highly concentrated. In the future, more biometrics will apply to mobile payments, and users will pay more attention to the security of personal information.
The proximity mobile market used to create a payment platform for operators directly and realize the transfer of various transaction information on this platform. It seems that users are more accustomed to the operation mode of e-commerce, and there is a market for payment only when there is a demand for transactions.
The use of a mobile wallet can be used as a bank card to realize POS card swiping, as a bus card to recharge, pay, check balance, and can also use as a merchant’s membership card. The NFC technology binding achieves all this with the SIM card, which will not consume mobile data and is safe and guaranteed.
Based on technology, the global proximity mobile payment market classified Barcodes, Near Field Communication. The barcodes segment will dominate the largest market share in the worldwide proximity mobile payment market. It mainly owes bar code payment interconnection provides convenience for merchants and customers, it also helps to reduce risks, maintain good market order, accelerate the unification of payment standards, and create a fairer competitive environment. Moreover, barcodes also mitigate related threats and help the bar code payment market to develop in a more secure, standardized, and efficient direction.
Based on application, the global proximity mobile payment market segmented into Hospitality and Tourism, IT and Telecommunications, Aviation, Retail, Media and Entertainment, BFSI, Healthcare. The retail segment is dominating the market demand of the global proximity mobile payment market. It owes to the adoption of smartphones and with the gradual improvement of NFC technology. It is a breakthrough for mobile operators to seek business development. NFC technology has established as the standard configuration of 4G mobile phones. Therefore, they can have a personalized “mobile wallet” immediately. Thus, improving customer experience allows the retail segment to attract more customers.
Based on geography, the global proximity mobile payment market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America region is dominating the market share of the global proximity mobile payment market. It is mainly owing to the adoption of smartphones, and the emerging use of proximity mobile payment use in the region is bolstering its market share. Moreover, proximity mobile payment is a safe, secure, and widespread technology that helps in excepting by the users.
Companies such as ACI Worldwide Inc., Starbucks Corporation, Visa Inc., FIS Global., Apple Inc., Samsung Electronics Co. Ltd., Square Inc., PayPal Holdings Inc., Alphabet Inc., Mastercard Incorporated, Vodafone Group Plc., CVS Health Group, and others are key players in the global proximity mobile payment market.
By Product Type
Mobile proximity payments are mobile payments where communication between the payer and recipient devices occurs by proximity technology with both existing at the exact location.
The global Proximity Mobile Payment market is projected to reach USD 700.4 Billion by 2027.
By region, the Global Proximity Mobile Payment Market segmented to North America, Europe, Asia Pacific, South America, and Middle East & Africa.
North America region has the highest expansion rate in the Global Proximity Mobile Payment Market due to smartphones and the emerging use of proximity mobile payment use in the area.
The Global Proximity Mobile Payment market is to grow at a compound annual growth rate of 46.3% for the forecast period of 2021 to 2027.
Increased use of smartphones, rising short-range wireless communication technology, higher security, and simple operation are driving the overall growth of the Global Proximity Mobile Payment Market.