Smartphones, digital payment cards and point-of-sale terminals are expected to drive the growth of the value of the global mobile payments market from $3.71trn in 2019 to $12.4trn by 2025.
That growth represents an expected compound annual growth rate of 23.8% in the next five years.
ResearchAndMarkets.com makes the estimation in a new report, adding that – aside from the previously mentioned technological developments – government initiatives are also driving the growth of the market.
It’s easy to see why governments are eager to ramp up their regulations to support cashless options as it can help governments curb tax frauds and maintain money trails.
The researchers uses Italy as an example of this. The nation’s citizens are among the least likely in Europe to use credit cards, but at the same time it also has one of the highest rates VAT frauds in the region. To curb this, the government has set aside $3bn for the next fiscal year to finance the bonuses to be offered as an incentive to those who use electronic payment services over cash.
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