A new report from French consultancy Intelling suggests that while European mobile wallet revenue will surpass €1 billion by 2021, its progress to date has been underwhelming.
Smart Insights’ “mWallets to meet European adoption” studies the evolution of Europe’s contactless cards and mobile payments industries.
Even though most financial institutions and mobile operators have introduced mobile wallets, none have yet to become popular with consumers, the authors state.
The experience gleaned from those early efforts caused operators like Apple Pay, Samsung Pay, Android Pay and Google Wallet to adjust their vision for mobile payment organization.
The new strategy comes with lower per unit revenue expectations but the expected 50 percent compound annual growth rate over the next five years will push European revenues to the €1 billion mark in 2021.
The major operators hope to use strategies which have been successful elsewhere to produce similar results in Europe. Tread carefully, the report’s author suggests.
“Although we see a growing adoption of tech giants’ mWallet initiatives in their home markets, companies like Apple, Google and Samsung have to adapt their mWallet business models to the specifics of the European market,” Artur Khakimov said. “Indeed, the report shows these tech companies have already set up necessary modifications ahead of the European launch.”
The fact big names are investing in the same is proof mobile wallets have legs, Smart Insights CEO Thierry Spanjard said.
“Even in a time of increased competition and more challenging markets, the entrance of the electronics giants Apple, Samsung and Google on the European market is bound to demonstrate its efficiency and profitability.”