Europe will be home to four of the ten fastest-growing countries for mobile payment transactions by 2025, according to Juniper Research and Boku.
Russia, Germany, Portugal and Sweden are projected to grow the fastest for mobile payment transactions.
However, despite its rapid growth in mobile transactions, Europe still lags behind Africa, the Middle East and Latin America when it comes to mobile wallets.
By 2025 SadaPay (Pakistan), MercadoPay (Brazil) and PicPay (Brazil) will be the fastest growing mobile wallets in the world, according to Juniper.
Between 2020 and 2025 the number of mobile wallets transacting over $1 billion per year will increase by 27 per cent, creating a growing acceptance challenge for merchants.
The report, sanctioned by Boku, revealed that one in two people globally will use a mobile wallet by 2025.
Boku cites the reduction in the usage of cash, bank transfers and card transactions as commerce shifts online as the reason for the change.
The report has also said that a growing interest from the younger generations in opting for mobile wallets instead of opening traditional bank accounts is pushing the change.
Boku’s report claims that for merchants to grow globally, they must accept the mobile payment methods that consumers prefer in target markets, which in many cases are increasingly mobile.
The UK market is seeing contactless payments as a major driver of usage going forward and one that has been spurred on by the pandemic.
“Ecommerce payments continue to be the primary driver of digital wallet usage around the world,” Boku chief executive Jon Prideaux said.
“This is a result of outdated payment types, such as cards and cash, not being designed for ecommerce.
“Consumers are gravitating to mobile-first payment methods and “super-apps” that offer a better user experience, better security and better rewards.
“If merchants want to attract, convert, and retain mobile-first consumers, they need to accept the mobile-first payment methods they have and use.
“For European merchants with global ambitions, this requires a new strategy for payment acceptance that goes well beyond cards and into mobile-first payments.”