Factsheet
Digital Adoption of Mobile Payments
Factsheet
Global and local findings to help you build your mobile payment strategy
The growth in mobile phone penetration, digital wallet offerings, and QR code payment adoption means that mobile payments are more popular than ever. This provides opportunities for both banks and retailers to create consumer offerings with technology that gives their customers the most convenient payment journey.
Significant growth is expected in Digital Payments worldwide, as more consumers are embracing the technology.
$7.36 trillion
$15 trillion
12.4% compound annual growth rate from 2022-2027.
2 out of 3 adults
make or receive digital payments.
With the growing functionality of smartphones, and increased affordability in developed countries, mobile payments are increasing rapidly on the global level.
$1.97 trillion
1 billion
25.7%
of people worldwide use mobile payments.
64.4%
increase in usage during the global pandemic.
32%
of all transactions in the UK (2021) were mobile payments.
43.2%
of US smartphone owners use mobile payments.
Prominent growth rates in the adoption of mobile payments are seen in emerging economies and developing countries.
33%
of adults have a mobile money account (10% global average).
Smartphone penetration
Ease of use
Financial inclusion features offered by the technology
15%
of adults used their mobile money account to save.
75%
of mobile account owners made or received at least one payment that was not person-to-person (2021).
Data costs in South Africa are notoriously expensive when compared to other emerging markets, being about six times higher. However, due to the necessity of cross-border remittances, the adoption of mobile money remains high.
Digital wallets offer the simplicity that consumers are searching for in today’s rapidly-evolving market. The trust and ease of use associated with the inclusion of biometrics further increases the attraction of digital wallets.
26 billion
49 billion
1.PayPal
2.Alipay
3.WeChat Pay
4.Apple Pay
5.Google Pay
Leading challengers include Amazon Pay, MTN Mobile Money, Orange Money, Samsung Pay.
The increase in the contactless payment limit makes it even easier for consumers to tap to pay, reducing friction at checkout.
With major banks and retailers offering QR code payment options, the rise in adoption comes as no surprise. Strategies for winning offerings will now include providing stand-out consumer experiences and functionality.
412%
Increase in local Masterpass transactions between March 2020 and February 2021.
6,825,842
Dynamic QR codes generated in 2022 globally, a 433% increase.
4 million /month
In 2019, merchants said that by accepting QR payments revenue typically increased by 10%.
$3 trillion
a 25% increase from $2.4 tn in 2022.
1.Alipay
2.PayPal
3.WeChat Pay
5.Google Pay
4.UnionPay International
Globally, close to 1 in 3 mobile phone users will be using QR code payment services by 2025.
With cash still king in South African townships, once some of the barriers to adoption have been addressed significant opportunities exist to grow digital payment services in this market.
Familiarity and convenience of physical cards
Trust
Transparency of cash (no hidden fees)
Understanding the technology
17%
of consumers do not have a mobile phone that supports mobile payments.
95%
of internet users in the country use WhatsApp - providing a growing payment alternative for telcos.
Disclaimer: Produced by Electrum Payments (Pty) Ltd - November 2022. Source references are available on request. The information and opinions expressed in this report have been compiled from sources believed to be reliable, but, neither Electrum, its contractors, nor its employees makes any representations as to its accuracy and completeness.
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