Digital Payment Market Insights:
Digital Payment Market was worth USD 88.8 Billion in 2021, and the market is anticipated to register a growth of USD 379.1 Billion by 2030 at a CAGR of 17.5% during the forecast period (2022-2030).
Digital payments are electronic payment methods as it involves banking cards, USSD, AEPS, UPI, Mobile wallets, Point of Sale, etc. In this case, the payer and the payee use the digital method to either send or receive the money. This type of payment is known as electronic payment. The digital payment is called a cashless transaction performed through different digital channels. This method allows transactions digitally or via online modes without the physical exchange of money. Moreover, these payment methods have multiple advantages such as simplicity and convenience, improved access to financial resources, economic advancement, security, and efficient tracking. Digital payment is widely used in various industries due to its safety and convenience. Additionally, the growing preference for digital payments over cash is changing the way people handle money, which is having a major impact on businesses.
According to consulting firm PwC, the global scale of cashless payments will grow by above 80% between 2020 and 2025, from approximately 1 trillion transactions in 2020 to nearly 1.9 trillion by 2025. Several smartwatch vendors are introducing improved smartwatches capable of contactless payments. According to his RBI report dated 25 August 2020, the volume of digital payments and remittances increased by 44% to reach INR 343,455 crore from 2019 to 2020. This shows how fast the digital payments industry is growing. Technological advances in the digital payments industry in North America are expected to create lucrative growth opportunities for the market. The platform allows you to combine credit and debit cards to split payments for online purchases without interest or additional costs.
Market Dynamics:
Driver:
- The rising proliferation of smartphones results in increasing online transactions.
- Increased efforts to implement Unified Payment Interface (UPI) coupled with increasing digitization, especially in the Asia-Pacific region, are propelling the market growth.
- The growing awareness about these interfaces’ safety and security along with rising urbanization and industrialization is driving the market growth.
- A rise in the number of e-commerce channels such as Amazon, changing customer fashion tastes and preferences, and increasing westernization will have a positive impact on the market growth rate.
- Widespread adoption of 4G and 5G internet services will increase the scope for growth and expansion globally.
Restraint:
- There are problems associated with cross-border payments such as high costs, security issues, low transactions, and lack of transparency.
- Lack of education and awareness among the people about digital payment coupled with weak banking infrastructure in some regions restraints the scope of market growth.
- A combination of lack of expertise and low experience levels hinders market growth rates.
Opportunity:
The rise of online and real-time payment approaches during the epidemic has increased the use of digital payment methods. Also, many companies and businesses are rapidly moving to non-cash transaction methods like MPOS Transactions. The rules and regulations accompanying the partnerships offered by the government around the world are expected to provide lucrative growth opportunities for the digital payment market.
UPI payments in India present several opportunities for the growth of the global digital payments market. For example, according to the National Payments Corporation of India (NPCI), UPI’s payments reached a monthly record of INR 2.3 billion in transactions in January 2021 which is worth USD 4.3 Billion.
COVID-19 Impact:
The digital payments market has been severely impacted in different regions of the world due to the COVID-19 pandemic. Key impacts of COVID-19 on the growth of the digital payments market are factors such as poor supply chains, slower device manufacturing speeds, lower discretionary spending, and economic slowdown. Moreover, the early impact of the pandemic in China was enormous. However, it has been noted that the situation in the country has stabilized and as a result, the overall impact of COVID-19 on the digital payments market has been moderate. Post-COVID-19 will continue to benefit the digital payment market expansion and accelerate the market growth rate. During the pandemic phase, contactless payment systems, especially e-wallets, are gaining popularity. Manufacturing industries were severely impacted, while the digital payments market surged in bill payments customer-to-business (C2B) payments, and peer-to-peer (P2P) transfers, during the epidemic period. Meanwhile, the COVID-19 pandemic is forcing governments, educators, businesses, and citizens to adapt to the “new normal” to conduct their day-to-day activities. For example, the pandemic is driving digital transformation in various regions in areas such as e-government, e-commerce, and remittances.
Digital Payment Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 379.1 Billion |
| CAGR (2022-2030) | 17.5% |
| By Mode of Payment | Payment Cards, Digital Wallets, Point of Sale, Unified Payments Interface (UPI) Service, Mobile Payment, and Online Payment. |
| By Deployment | On-Premises, Cloud |
| By Enterprise Size | Large Enterprises, Small & Medium Enterprises (SMEs). |
| By End-Use | BFSI, Healthcare, IT & Telecom, Media & Entertainment, Retail & E-commerce, Transportation, others |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa |
| Key Players | Wordplay Inc. (Fidelity National Information Services), PayPal Holdings Inc., MasterCard Incorporated (MasterCard), Stripe Inc., Alphabet Inc., Fiserv Inc., Visa Inc., Alipay.com Co. Ltd, Amazon Payments Inc. (Amazon.com Inc.), Paytm (One97 Communications limited), Apple Inc. and Mobiamo Inc. |
Market Segmentation:
By Mode of Payment:
The mode of payment segment is divided into payment cards, digital wallets, point of sale, unified payments interface (UPI) service, mobile payment, and online payment. Based on the mode of payment, the digital wallet segment holds the largest market, registering a CAGR growth of 27.0%, and is anticipated to hold revenue of USD 30.2 Billion during the forecast period. This is due to the increasing adoption of IoT devices.
According to the latest data from FIS PACE, 32% of mobile wallet users worldwide have downloaded multiple mobile wallets such as Google Pay, Apple Pay, etc. on their smartphones. The survey also showed that millennials and Gen Z are increasingly using digital wallets. In addition, technological advancements in digital wallets are expected to enable them to store and facilitate large-scale payment transactions along with seamless, on-demand access to alternative digital assets such as cryptocurrencies.
According to the World Payments Report, the volume of cashless transactions worldwide has grown at a double-digit rate over the years, accounting for almost 8.6% of all cashless transactions. Digital wallet providers such as Google Alibaba Group offer value-added features and a superior customer experience.
By Deployment
The deployment segment is divided into on-premises and cloud. The on-premises delivery segment dominated the market in 2021. On-premises delivery of digital payment solutions secures transactions. As a result, various organizations prefer on-premises digital payment solutions. Furthermore, the cloud segment is anticipated to increase market growth over the forecast period. Cloud-based e-commerce applications offer the potential to expand services and customer experience. This has directly increased the number of digital payments. Additionally, cloud computing offers better performance than on-premises systems. Because providers have access to fast servers and data centers with more powerful computers than most companies would afford. Cloud technologies include built-in AWS, IBM Cloud, Microsoft Azure, VMware, Google Cloud, and more security. In addition, cloud service providers used by digital payment systems have sophisticated monitoring systems that constantly monitor payment system usage and take preventive action when necessary. Additionally, it helps you scale your infrastructure dynamically.
By Enterprise Size
The enterprise size segment is separated into large enterprises and small & medium enterprises (SMEs). The large enterprise segment conquered the market in 2021 and is anticipated to increase the market growth over the forecast period. Many large businesses have adopted digital payment solutions to efficiently manage payment transactions, improve transaction transparency, and improve the customer experience by reducing the time required to complete payments.
By End-Use
The end-user segment is separated into BFSI, healthcare, IT & telecom, media & entertainment, retail & E-commerce, transportation, and others. Depending upon the end user, the Banking, Financial Services, and Insurance (BFSI) segment is the leading player and is expected to have the biggest impact on the digital payment market. In recent years, insurance companies, financial services companies, and brokerage firms have undergone major changes in the way they pay and receive funds. Hence, increasing demand for digital payments for domestic and cross-border transactions is primarily driving the growth of the BFSI segment. Moreover, this BFSI sector has observed an increase in consumer preference for digital payments due to growing internet use and rapid smartphone adoption. Meanwhile, banks are expanding their offerings related to digital payments to compete with other solution providers such as Google, Facebook, and Amazon.
However, the retail and e-commerce segment is expected to register the highest growth rate during the forecast period owing to a significant increase in the use of mobile payment solutions among consumers for retail payments. In addition, the current trend toward unstaffed convenience stores is expected to create lucrative growth opportunities for this segment. For example, LG Electronics in December 2021, extended its unstaffed retail stores by introducing 30 unstaffed stores up and running by June 2022 to meet the demand for contactless shopping.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America. North America region dominated the market with the largest sales share in 2021 and is anticipated to increase the market growth during the forecast period. This is due to the presence of key players in the region like Visa, PayPal Holdings, Inc., and MasterCard along with the presence of the advanced infrastructure in the region. The digital payment market growth in this region particularly in the United States and Canada is mainly due to the continued adoption of digital wallets and mobile payments by US consumers. For example, a recent survey found that more than four in five Americans use some form of digital payment.
Asia Pacific is set to grow at the highest growth rate during the forecast period as it presents promising potential. This is due to his new UPI platform and the increase in smartphone users. This region includes China, India, Japan, South Korea, and others. Furthermore, the remarkable growth of China’s digital payments sector is also driving growth in the Asia-Pacific region. More than 90% of his Chinese urban consumers use his Alipay or WeChat Pay, which are two leading digital payment methods in the country. Moreover, according to the data collation portal Statista.19, India showed a sharp increase from 44 billion in 2021 to about 70 billion digital payment transactions in 2022 which is the highest in the world.
Digital Payment Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), Mode of Payment innovation, various business strategies, and Deployment launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
- Wordplay Inc. (Fidelity National Information Services)
- PayPal Holdings Inc.
- MasterCard Incorporated (MasterCard)
- Stripe Inc.
- Alphabet Inc.
- Fiserv Inc.
- Visa Inc.
- com Co. Ltd
- Amazon Payments Inc. (Amazon.com Inc.)
- Paytm (One97 Communications limited)
- Apple Inc.
- Mobiamo Inc.
Recent Developments:
- In June 2022, a UK-based firm named Trust Payments signed a contract with an American multinational company named Fiserv, Inc. Further, the contract named Trust Payments is anticipated to deliver its customers with on-demand payment abilities through receiving Aqaas (-as-a-service) abilities from Fiserv.
- Mahapatra Chairman NPCI announced the launch of three major products to revolutionize digital payments at the Global Fintech Fest in Mumbai, India in 2022. These three launches are, UPI LITE, UPI’s RuPay credit card, and Bharat BillPay cross-border bill payment.
Table of Content
To check our Table of Contents, please mail us at: [email protected]
Research Methodology
The Market Research Community offers numerous solutions and its full addition in the research methods to be skilled at each step. We use wide-ranging resources to produce the best outcome for our customers. The achievement of a research development is completely reliant on the research methods implemented by the company. We always faithful to our clients to find opportunities by examining the global market and offering economic insights.Market Research Community are proud of our widespread coverage that encompasses the understanding of numerous major industry domains. Company offers consistency in our research report, we also offers on the part of the analysis of forecast across a range of coverage geographies and coverage. The research teams carry out primary and secondary research to carry out and design the data collection methods.