SEATTLE–Business is percolating at Starbucks, at least when it comes to the company’s mobile payments app, which now has some 31.2 million users.
And Starbucks is hardly alone. Data released by MoneyTransfers.com indicates 25.7% of people worldwide use mobile payments, with this number expected to reach a share of 33.4% by 2024. In 2021, the global mobile payment market was worth $53 billion and at a CAGR of 35.5%, eventually reaching $607.9 billion by the end of 2030, according to the analysis.
‘No Signs of Slowing’
“The market is showing no signs of slowing,” the report said. “The growth of mobile payments arises from the declining use of cash, which will fall to just 12.7% of payments by 2024. The demise of cash payments became apparent during the pandemic period as a result of individuals' desire to avoid physical contact as much as possible. The pandemic period thus saw an increase in mobile payments of 64.4%.
“However, it’s interesting to see just how significantly mobile payments increased in comparison to credit and debit cards,” the report continued. “The share of payments via mobiles was twice that via credit cards and triple that of debit card transactions. Continuous growth is anticipated for the mobile payments market, with users in the U.S. expected to spend on average $4,064.3 per year by 2025.”
Monopolies Emerge
According to the analysis, the mobile payments market already has clear monopolies with China-based Alipay and WeChat Pay holding the largest mobile payment market share, with 650 million and 550 million users, respectively. The remainder of the top five companies in the sector are U.S.-based Apple Pay (507 million users), Google Pay (421 million), and PayPal (377 million).
“However, Apple Pay held the number one spot in both the UK and US,” the report explained. “In the UK, 68% of mobile payment users cite using Apple Pay within the last year to complete transactions. In the US 43.9 million Americans use Apple Pay and this number is only expected to rise by an additional 14.4 million by 2025.
Non-Financial Companies
“However, not all key players within the mobile payments market are traditionally in the finance industry, and Starbucks is exemplary of this, with the company boasting 31.2 million users of its mobile payment app - making it the second most popular in the U.S. following Apple Pay,” the analysis continued. “This demonstrates that companies should not be dubious about entering the market based on the current competition as the market allows for companies to cater the service to their own brand rather than vice versa.”
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