News

'Pays' will reap revenue of more than $1B euros in EU by 2021

Apple Pay, Samsung Pay and Android Pay will be 'massively' adopted by the European payment market over the next few years, new research shows.

April 4, 2016

A new report from Smart Insights, "mWallets to meet European adoption," finds that the pay wallets — i.e., Apple Pay, Samsung Pay, Android Pay — will be "massively" adopted by the European payment market over the next few years, generating more than 1 billion euros ($880 million) in additional payment industry revenue by 2021.

The report analyzes in detail the evolution of the mobile payments market in Europe and the hurdles encountered in payment wallet rollouts in other markets. Providers Apple, Samsung and Google have already taken measures to adapt their offerings to the technical and business specs of European markets.

Among key findings from the report:

• in the U.S. and in South Korea, the pay wallets have experienced some initial hiccups but are now seeing growing uptake;
• European financial institutions and mobile network operators have introduced mobile payment solutions in recent years but none has achieved mass adoption;
• operational revenues among card and payment providers are trending downward due to a recently interchange cap measures;
• mobile wallet transaction volume in the EU is expected to grow at a CAGR of 62 percent from 2016 to 2021; and
• total m-wallet revenue for the payments industry is expected to see a CAGR of 50 percent during the period, surpassing 1 billion euros by 2021.

"It has been established that consumers are more confident in electronic giants than in MNOs or even in established financial institutions when it comes to satisfy their mobile payment needs," said Artur Khakimov, industry analyst for Smart Insights and author of the report. "This will help the pay wallets' adoption in the European market."