The global mobile wallet services market is expected to grow at a CAGR of 42% over the next five years due to the multiple functionalities they can offer both buyers as well as suppliers.
A new report from Technavio,‘Global Mobile Wallet Services: Procurement Intelligence Report 2017-2021’ finds cost-saving opportunities can be leveraged if buyers have many transactions and would be interested in associating with suppliers for long contract terms.
Technavio procurement experts have segmented the cost saving opportunities in the mobile wallet services market into the following value-enhancement opportunities:
• Adoption of technology
• Supplier Competition
• Adoption of negotiation strategies
• Optimization of procurement practices
• Bundling of services
Adoption of technology saving aspects
Mobile payment technologies such as NFC, HCE, BLE, and QR codes are penetrating the market with technology leaders such as Apple, Google, and Samsung spearheading development.
Consumers need to perceive mobile payments as an easy and convenient mode of payment via the integration of the mobile banking and payment experiences. Consumers are comfortable making financial transactions using mobile channels developed by trusted financial institutions such as banks. Converging these two into one seamless experience is crucial to bridge the gap and push consumers into making mobile payments online or at POS.
Optimization of procurement practices saving aspects
A fast, simple, and seamless mobile payment process can enhance brand reputation and differentiation in the market. Customers consider personalized user experiences on payment interfaces, fast and efficient check-outs, and multiple payment options (debit/credit cards, internet banking) as important features in mobile wallets. According to a 2016 market study on mobile commerce, approximately two billion mobile phone/tablet users are expected to make mobile commerce transactions globally by 2017.
Bundling of services saving aspects
With the aim of developing mobile wallets for purposes beyond payments, suppliers are expanding their mobile money portfolios from basic P2P money transfers and bill payments to services. They are strategically partnering with network operators and banks to provide localized and real-time offerings such as loyalty points, discounts, and ratings and reviews across popular retail, entertainment, and hospitality businesses.
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