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The number of mobile wallets in use in Asia-Pacific is projected to exceed half a billion by 2025

The latest publication from Hamburg-based desk research company yStats.com titled “Global Digital Payment Forecasts 2022-2025” shares insights into the digital payment market development, latest trends, and global forecasts, including the effects of the COVID-19 pandemic. The publication reveals that nearly a quarter of the population in the UK will use proximity mobile payments by 2025.

Global cashless transaction volume is forecasted to exceed one and a half trillion by 2025

The global digital payment industry was dramatically affected by the health crisis COVID-19 in 2020 and this resulted in major shifts in the development of the market. Although non-cash transactions were already commonly used in many regions before 2020, the adoption rate of such payments accelerated significantly and is projected to increase. Global cashless transactions are projected to grow at about 18% CAGR between 2020 and 2025 and exceed a one and a half trillion mark in volume. The region with the highest numbers is expected to be Asia-Pacific. This area already had a mature non-cash payment market in 2020, however, during the next 5 years, the figures are projected to progressively increase. The region following Asia-Pacific is poised to be Europe and then North America in 2025.

Asia-Pacific is forecasted to remain the biggest regional market for mobile wallet payments in the world

Although before the COVID-19 pandemic, mobile payment usage was extensive in some regions, the health crisis accelerated the trend globally in 2020. This is due to the accelerated security and cross-channel payment features of mobile contactless payments. In 2021, the leading country in the share of proximity mobile payment users is expected to be China, making up 87.3% of smartphone users, distantly followed by South Korea and the United States In China, the share of proximity mobile payment users in the entire population is projected to exceed 67% by 2025. Furthermore, in several regions, mobile wallets have been a crucial way to make payments, as authorities in some markets intend to reduce the usage of cash. In Asia-Pacific, for example, the number of mobile wallets in use is projected to more than double from 2021 to 2025. Although the Asia-Pacific is predicted to be the dominant region in the usage of the mobile wallet, other regions are also forecasted to experience acceleration, such as Latin America, Europe, Africa and the Middle East. Latin America is forecasted to follow the APAC region in the number of mobile wallets in use, reaching over 600 million by 2025. Even in the emerging markets, where mobile wallets were not commonly adopted in 2020, the forecasts for 2025 show the increased adoption rate. For instance, in Singapore, the penetration rate of mobile wallet payments is projected to surge from about a third to almost 100%, the same goes for Brazil and Mexico.