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BizReport : Trends & Ideas archives : May 22, 2017

EU mobile payments market to triple by 2021

Growing retailer and consumer interest in mobile payments will lead to the European mobile payments marketing tripling over the next five years, according to the latest data from Forrester Research.

by Helen Leggatt

Over the next five years the European mobile payments market will almost triple, rising from 2015's total of $58 billion to $165 billion by 2021.

Mobile in-person payments as well as remote payments, such as via an app, will drive growth, says Forrester in its latest report. Mobile in-person will lead growth, increasing almost fivefold between last year and 2021, accounting for nearly 16% of all mobile payments.

Meanwhile, remote mobile payments will increase more slowly across Europe, but will remain the largest segment of the market by a sizable margin. The value of remote mobile transactions is projected to climb at a CAGR of 20% and make up two­-thirds of mobile payments by 2021. Payment buttons placed in apps and within mobile websites will claim a growing share of these remote sales.

Increased consumer awareness has, and will continue, to boost growth. The launch of mobile payment platforms throughout Europe, such as Wa! (BNP Paribas) in France, as well as the market entry of giants such as Apple and Google, have provided far more opportunities for consumers to recognize and use mobile payments.

Earlier this year, a survey by NTT DATA Consulting and Ingenico ePayments found that 43% of businesses with revenue growth of 11% each year have an app that allows purchases and payments.

According to Peter Olynick, retail banking senior practice lead for NTT DATA Consulting, the findings highlight the need for companies to embrace innovations in payment methods.

"Companies should be working to provide a frictionless payment experience by bringing consumers innovative new products and processes," said Olynick. "Their efforts will help improve customer satisfaction, facilitate cross-border commerce and allow for a more efficient shopping experience."

Tags: Europe, mobile apps, mobile payments, payment technology

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