Mobile payments are becoming increasingly common across most markets thanks to their convenience and ease of use compared to traditional fiat currencies, Euromonitor International senior research analyst Marite Garcia-Araujo says. With millions of consumers worldwide onboarding onto online payment platforms in recent years, mobile payments may even be a legitimate threat to conventional physical currencies in the near future.
As a result of the recent influx of users, the nascent mobile money industry’s value keeps rising and is expected to reach further heights as more people adopt virtual payments. The sector’s growth was driven by the convenience offered by payment services coupled with industry-wide innovation, wider financial inclusion, and greater acceptance by merchants, Garcia-Araujo notes.
Additionally, the proliferation of smartphones in Asia and the West has made virtual payments within easy reach for hundreds of millions of people, giving the nascent sector significant potential for growth. Smartphones coupled with digital wallets now serve as payment tools that allow people to use Tap-to-Pay features both in-store and online.
Garcia-Araujo says industry players are now focusing on their efforts on improving virtual payment solutions and their infrastructure amidst expectations of robust growth as the virtual payment ecosystem becomes increasingly tied to mobile. The sector’s incredible convenience will be largely responsible for its expected growth, particularly in markets where both online merchants and physical shops incorporate virtual payments into their platforms.
Younger consumers are especially taken with mobile money, Garcia-Araujo notes, but older consumers are also adopting the technology in great numbers due to the technology’s convenience and ease of use. Mobile money use among this cohort exploded during the coronavirus pandemic as it allowed older individuals, many of them with compromised immunities, to make purchases without the risk of coronavirus infection.
The technology has remained popular among both young and old users years after the pandemic passed and lockdown orders were lifted. Euromonitor International data shows virtual payment transactions across 47 markets increased by 12% year-over-year in 2024 to reach $8.146 trillion. Garcia-Araujo states that the appearance of low-cost smartphone brands has increased consumer access to affordable mobile phones that are tailored to suit varying consumer needs, coupled with higher household internet access, was largely responsible for this growth.
87% of households globally owned smartphones and 71% had access to broadband internet in 2023, allowing them to use mobile money services with ease. The financial technology sector’s continued strong performance has also boosted financial inclusion in most markets by enabling the development of user-friendly and easily accessible apps and tools that can help improve financial literacy and user experience.
Enterprises like FingerMotion Inc. (NASDAQ: FNGR) that focus on providing services within the mobile payment space have plenty of opportunities to tap into this rapidly expanding market as more sections of the population opt for virtual payment when buying goods and services.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
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