A new Smart Insights Report by French consultancy Intelling suggests ways to adapt Pay Wallets for the European market.
The report begins with a history of mobile payments in Europe before describing problems Pay Wallets have experienced when introduced in other regions.
Different areas saw different patterns. While both the United States and South Korea saw early troubles, they are now experiencing solid adoption rates, a situation Europe has yet to realize.
A recently introduced interchange cap regulation has resulted in lower revenue operations for both the card and payment industries but better days may be coming. Mobile wallet transactions in the EU are predicted to grow by 61.8 percent over the next five years while revenue should see a 50 percent bump in the same frame.
“The European payment market is characterized by efficiency, fragmentation and lower operating revenue,” Smart Insights CEO Thierry Spaniard explained. “Attracted by the European market size and dynamism, the Pay Wallet vendors are taking these constraints into account on their path to European market conquest.”