Analysis of the Digital Payment Market: Assessment of Market Size, Trends, Statistics, and Competitors
Global Digital Payment Market by Services (API, Payment Gateway, Payment Processing, Payment Security & Fraud Management, and Others), by Payment Mode (Mobile Payment, Digital Currency, Net Banking, Digital Wallets, Point of Sales, and Others), by Deployment (Cloud and On-Premise), by End Use (BSFI, Healthcare, IT & Telecom, Media & Entertainment, Retail & E-Commerce, Consumer Electronics, and Others), and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Market Size, Share, COVID-19 Impact, Regional Analysis & Forecast Till 2030
Category - ICT
Report Code - OMR-ICT-175
Format: PDF, PPT, and Excel
Digital Payment Market Overview
Money is not physically exchanged for the goods or services purchased when a digital payment is made. This transaction, which may also be called an electronic payment (e-payment), involves the exchange of monetary value between two parties through digital tools like mobile phones, computers, or credit, debit, or prepaid cards. Over $8 trillion was transacted via digital payment systems worldwide in 2022. In 2020, India processed 25.6 billion RT transactions, up 70 percent from the previous year. E-commerce service providers are shifting their focus from providing traditional credit card and consumer finance solutions to customer engagement solutions that use digital payments to boost their competitive advantages. When it comes to accepting digital payments, e-commerce businesses also make use of their POS systems. The capabilities of contactless payment cards are being expanded by governments worldwide, opening up new chances for growth in the sector. Online payment systems are as vulnerable to technological issues and outages as any other program that relies heavily on technology. Tech maintenance operations are normally planned ahead of time and carried out at night, although they might still cause some inconvenience for online users on occasion. The market for digital payment systems has grown owing to the COVID-19 epidemic. Cashless transactions and online services have helped people keep their distance from one another to stop the transmission of disease.
Digital Payment Market Growth Factors
Utilization of E-Commerce and Technology-Lead Solutions to Propel Market Growth
The proliferation of e-commerce and technology-driven initiatives is driving digital payment market developments. Samsung Pay, Google Pay, Alipay, and Apple Pay have all gained significant market share in recent years. These firms have poured resources into developing cutting-edge technology and broadening their offerings to digital payment systems. To streamline their operations and increase client engagement, Alibaba, a Chinese e-commerce business, developed Alipay to enable payment services between vendors and customers. A better 5G connection also aids in implementing fraud protection measures by digital payment service providers. The GSM Association predicts that by 2025, 5G networks will reach approximately one-third of the world's population. To preserve social distance in the face of the COVID-19 epidemic, transportation and logistics firms are forming relationships with suppliers of digital payment solutions. For instance, commercial mobility solution supplier Eurowag invested in mobile service integrator Drivitty in April 2021. The former organization hopes to expand its vehicle fleet management offerings to the latter through this collaboration. Many advantages, such as scalability and decentralization, are available through Distributed Ledger Technology (DLT). Civic, an e-KYC platform provider, is one such company that provides affordable and reliable digital identification. The development of new digital payment options has also been spurred forward by cloud computing. For instance, Paygilant is a cloud-based service that detects real-time payment fraud using a revolutionary mobile payment app. The expansion of the digital payment sector is anticipated to be fueled by all these technological developments. The proliferation of cell phones, faster internet connections, and digital interfaces have increased the need for real-time transaction systems. The digital compensation market stands to benefit from this need. Customers increasingly anticipate a simpler and more streamlined digital purchasing experience. Better usability and adaptability are driving growth in the industry throughout the world.
Gen-Z and Younger Population’s Inclination Towards Digital Payments to Augment Demand
Non-cash payment options are quickly gaining popularity among consumers because of the ease and convenience they provide compared to traditional bank transfers. As a result, asset-light alternatives like QR codes and cheaper terminals are predicted to increase rapidly over the next several years. For example, according to the most recent statistics from FIS PACE, 32% of mobile wallet users worldwide have three or more mobile wallets like Google Pay, Apple Pay, and others preloaded on their smartphones. The survey also found that digital wallet usage is on the rise among millennials and generation Z. It is anticipated that future developments in digital wallet technology would make it possible for these wallets to store and facilitate substantial financial transactions, as well as provide seamless and on-demand access to alternative digital assets like bitcoin. A growing trend in the industry is the provision of incentives for using digital payment methods. Many businesses, including banks, invest heavily in loyalty programs that reward customers using digital payment methods. If you pay for your Amazon order via net banking or a certain credit card, you'll receive a substantial reduction in the final price. The trend will most likely result in substantial market potential and fierce rivalry among the major players in the digital payment business. Millennials' widespread embrace of digital payment methods is largely responsible for this upward tendency. Naturally, members of Generation Z are more likely to use digital services. Among young people, online banking has become the standard. Generation Z increasingly demands a tailor-made, adaptable, and highly relevant customer service experience. Another important driver in the expansion of businesses is the rising need for better user experiences. Providing a superior customer experience is becoming increasingly competitive as payment options develop. Providers can communicate with their clientele by using these tools. This is one of the most promising areas of the rapidly growing online payment market.
Digital Payment Industry Segmentation
Services
• API
• Payment Gateway
• Payment Processing
• Payment Security & Fraud Management
• Others
Payment Mode
• Mobile Payment
o Proximity
o Remote
• Digital Currency
• Net Banking
• Digital Wallets
• Point of Sales
o Credit Cards
o Debit Cards
o Others
• Others
Deployment
• Cloud
• On-Premise
End Use
• BSFI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-Commerce
• Consumer Electronics
• Others
Digital Payment Market Regional Segmentation
North America
o U.S.
o Canada
o Mexico
Europe
o Germany
o U.K.
o France
o Spain
o Italy
o Rest of Europe (RoE)
Asia Pacific (APAC)
o Japan
o China
o India
o South Korea
o Rest of APAC
Latin America
o Argentina
o Brazil
o Rest of Latin America
Middle East & Africa
o South Africa
o UAE
o Saudi Arabia
o Rest of MEA
Services Insight
Payment Processing Domain to Capture Largest Market Share Owing to the Rising Popularity of Online Shopping
The market can be split into API, payment gateway, payment processing, payment security & fraud management, and others based on services.
In 2022, the payment processing industry captured the dominant share of worldwide revenue. As the popularity of online shopping continues to rise worldwide, merchants are pressured to provide secure payment processing methods. Mergers, acquisitions, and strategic alliances are key strategies for growth among providers of payment processing systems. For instance, PXP Financial Inc., a payment processing service provider, and Shift4, a payment processing solution provider, announced their alliance in October 2021.
Over the projected period, the payment gateway industry is expected to expand faster than any other. Merchants are constantly on the lookout for new and improved payment gateway solutions. In addition, clients may pay using their cell phones or the internet via payment gateways installed within the store. As a result, the expansion of this market is driven by the increasing use of payment gateways by brick-and-mortar stores.
Mode of Payment Insight
Point-of-Sale Segment to Emerge as Leaderboard Due to Rising Utilization within the Retail Space
Based on the mode of payment, the global market can be differentiated into mobile payment, digital currency, net banking, digital wallets, point of sales, and others.
The point-of-sale systems will account for the largest market share during the forecast period. Retail establishments typically utilize point-of-sale systems to manage customer purchases. Quicker checkout, a more personal shopping experience, and more flexible payment methods are just some of these systems' advantages. Retailers worldwide increasingly use cloud-based point-of-sale systems to boost productivity and customer satisfaction.
Over the projection period, the net banking market is anticipated to expand rapidly. The segment's expansion may largely be attributed to the convenience, time savings, and accountability of internet banking. Because of this, the number of people using online banking has increased in many nations. About 80% of U.S. internet users accessed their financial accounts online in 2020, according to data given by eMarketer.
Regional Insights
North America to Produce Largest Market Hold Owing to Supportive Infrastructure
Based on geographical location, the global market can be aggregated across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.
Digital payment services are predicted to grow fastest in Asia-Pacific, particularly India, and Japan. Mobile payments and digital wallets are expected to be more widely used in APAC than other areas. Due to their massive populations, India and China have excellent prospects for growing the digital payment business. Since demonetization in 2016, mobile payments and digital wallets have become the norm in India. Revenue from the digital payment business is projected to increase in the next years due to government efforts in India, such as Digital India. Over half of all e-commerce in China is predicted to come from sales made through e-commerce behemoth Alibaba Ltd. This service allows users to split the cost of online transactions amongst many cards, including credit and debit, without incurring additional fees. The platform's design lowers users' per-card costs, protects their financial anonymity, and boosts their credit ratings.
The market share held by North America will be considerable. The United States and Canada are part of this area. The continued popularity of digital wallets and mobile payments among U.S. customers is the primary factor driving the market's expansion in North America. For example, a recent poll found that over 80% of Americans regularly utilize digital payment methods such as an app or browser-based internet purchases, P2P payments, and mobile phone checkout at brick-and-mortar establishments. Opportunities for expansion in the North American digital payment sector are anticipated to be very profitable, thanks to recent technological developments.
Europe's mobile and banking sectors are well established. Most Europeans already have bank accounts, making the region a prime market for expanding digital wallets until at least 2026. NFC is predicted to increase the market size in Europe, particularly in the UK and Germany. Several firms, including Telefonica and Vodafone, are investing in NFC services via mobile and cards.
Digital Payments Industry Analysis
There is a great deal of diversity among the many players in the industry. Market participants are concentrating on methods like partnerships, joint ventures, product innovation, R&D, and regional growth to fortify their standings in the industry. Retailers prefer on-premise digital payment systems because they provide higher security, increasing consumer satisfaction. Established companies are working to improve their product lines to maintain a competitive edge in the market.
The prediction for the digital payment industry also notes that the participants are investing heavily in tailoring their goods to the market's needs. These developments are carried out with the existing payment devices in mind, keeping the provider's cost of adoption low.
Digital Payment Market Recent Developments
• In June 2022, to help small company owners, Verizon may collaborate with First National Bank of Omaha (FNBO) and Mastercard to provide a credit card. Companies with an active online account and less than 100 lines are eligible for the Verizon Business Mastercard. Every purchase made with a credit card will earn reward points.
• In May 2022, to facilitate the transition to digital payment options for small businesses, Visa teamed up with Fundbox, a working capital platform. The initial step is the Pathward N.A.-issued Fundbox Flex Visa Debit Card rollout.
• In March 2022, Tink, an open banking platform that facilitates the development of financial products and services by fintech, merchants, and financial institutions, was acquired by Visa. Tink worked with more than 3,400 banks and financial institutions across Europe, and their clients numbered millions.
Global Digital Payment Market Prominent Players
• Visa Inc. (U.S.)
• Alipay.com Co Ltd (China)
• Amazon.com Inc. (U.S.)
• Alphabet Inc. (U.S.)
• Samsung Electronics Co. Ltd. (South Korea)
• PayPal Holdings Inc. (U.S.)
• Global Payments Inc. (U.S.)
• Wirecard (Germany)
• Authorize.net (U.S.)
• ACI Worldwide, Inc. (U.S.)
• Paytm (India)
• ACI Worldwide, Inc. (Australia)
• Alphabet Inc. (U.S.)
Frequently Asked Questions (FAQs)
At what rate will the Digital Payment Market Expand?
According to Objective Market Research, the market for digital payments would expand at a CAGR of 20.4% over the forecast period.
What are the factors driving the global Digital Payment Market?
The global digital payment market will grow rapidly during the forecast period due to increasing e-commerce shopping, better connectivity services, intense competition among prominent players, and increasing consumer preference.
Which segment accounted for the largest Digital Payment Market share by Mode of Payment?
The point-of-sale segment is expected to dominate the market. Typically, retail establishments use point-of-sale systems to track consumer purchases as they offer quicker checkout and a convenient experience.
What region holds the major share in the global market scape?
Mobile payments and digital wallets are anticipated to be utilized more frequently in APAC than other regions. Due to their enormous populations, India and China have tremendous growth potential for the digital payment industry.
Which are the dominating players in the market during the forecast period?
Some dominant in the global digital payment market is Visa Inc. (U.S.), Alipay.com Co Ltd (China), Amazon.com Inc. (U.S.), Alphabet Inc. (U.S.), Samsung Electronics Co. Ltd. (South Korea), PayPal Holdings Inc. (U.S.), and Global Payments Inc. (U.S.), among others.
*Our reports are available on a region/wise and chapter/wise basis as well. For any additional personalization contact our sales representative directly at sales@objectivemarketresearch.com
Table of Content
1. Introduction
1.1 Market Definition
1.2 Objective of the Study
1.3 Market Scope
1.4 Years Considered in the Study
1.4.1 Historic Year: 2019-2021
1.4.2 Base Year: 2022
1.4.3 Forecast Period: 2023-2030
1.5 Currency Used in the Study
1.6 Boundaries for the Study
1.7 Collaborators/Stakeholders/Benefactors
2. Research Methodology
2.1 Research Outline
2.2 Data Collection Methods
2.3 Data Sources
2.3.1 Secondary Sources
2.3.1.1 Paid Sources
2.3.1.2 Unpaid Sources
2.3.2 Primary Sources
2.4 Market Estimation Methodology
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Data Triangulation
2.6 Assumptions of the Study
2.7 Limitations of the Study
3. Executive Summary
3.1 Market Outlook
3.2 Analysts Perspective
4. Market Overview
4.1 Market Dynamics
4.1.1 Drivers
4.1.1.1. Expanding E-Commerce
4.1.1.2. Adoption of AI and ML for Smart Services
4.1.2. Restrain
4.1.2.1. Vulnerabilities in Security
4.1.3. Opportunities
4.1.3.1. Rising Inclination of Gen Z and Younger Population for Fast Transactions
4.1.4. Impact of Market Dynamics
4.2. Impact of COVID-19 pandemic
4.3. Value Chain Analysis
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitution
4.4.4. Threat of New Entrants
4.4.5. Competitive Rivalry
5. Global Digital Payment Analysis & Forecast, Market by Services from 2019-2030 (in USD million)
5.1. API
5.2. Payment Gateway
5.3. Payment Processing
5.4. Payment Security & Fraud Management
5.5. Others
6. Global Digital Payment Market Analysis & Forecast, by Payment Mode from 2019-2030 (in USD million)
6.1. Mobile Payment
6.1.1. Proximity
6.1.2. Remote
6.2. Digital Currency
6.3. Net Banking
6.4. Digital Wallets
6.5. Point of Sales
6.5.1. Credit Cards
6.5.2. Debit Cards
6.5.3. Others
6.6 Others
7. Global Digital Payment Market Analysis & Forecast, by Deployment from 2019-2030 (in USD million)
7.1. Cloud
7.2. On-Premise
8. Global Digital Payment Market Analysis & Forecast, by End User from 2019-2030 (in USD million)
8.1. BSFI
8.2. Healthcare
8.3. IT & Telecom
8.4. Media & Entertainment
8.5. Retail & E-Commerce
8.6. Consumer Electronics
8.7. Others
9. Global Digital Payment Market Analysis & Forecast, by Region from 2019-2030 (in USD million)
9.1. North America
9.1.1. North America Digital Payment Market Analysis & Forecast, By Country
9.1.1.1. U.S.
9.1.1.2. Canada
9.1.1.3. Mexico
9.1.2. North America Digital Payment Market Analysis & Forecast, By Services
9.1.3. North America Digital Payment Market Analysis & Forecast, By Payment Mode
9.1.4. North America Digital Payment Market Analysis & Forecast, By Deployment
9.1.5. North America Digital Payment Market Analysis & Forecast, By End User
9.2. Europe
9.2.1. Europe Digital Payment Market Analysis & Forecast, By Country
9.2.1.1. Germany
9.2.1.2. UK
9.2.1.3. France
9.2.1.4. Spain
9.2.1.5. Italy
9.2.1.6. Rest of Europe (RoE)
9.2.2. Europe Digital Payment Market Analysis & Forecast, By Services
9.2.3. Europe Digital Payment Market Analysis & Forecast, By Payment Mode
9.2.4. Europe Digital Payment Market Analysis & Forecast, By Deployment
9.2.5. Europe Digital Payment Market Analysis & Forecast, By End User
9.3. Asia-Pacific (APAC)
9.3.1. Asia-Pacific Digital Payment Market Analysis & Forecast, By Country
9.3.1.1. Japan
9.3.1.2. China
9.3.1.3. India
9.3.1.4. South Korea
9.3.1.5. Rest of the APAC
9.3.2. Asia-Pacific Digital Payment Market Analysis & Forecast, By Services
9.3.3. Asia-Pacific Digital Payment Market Analysis & Forecast, By Payment Mode
9.3.4. Asia-Pacific Digital Payment Market Analysis & Forecast, By Deployment
9.3.5. Asia-Pacific Digital Payment Market Analysis & Forecast, By End User
9.4. Latin America
9.4.1. Latin America Digital Payment Market Analysis & Forecast, By Country/Region
9.4.1.1. Argentina
9.4.1.2. Brazil
9.4.1.3. Rest of Latin America
9.4.2. Latin America Digital Payment Market Analysis & Forecast, By Services
9.4.3. Latin America Digital Payment Market Analysis & Forecast, By Payment Mode
9.4.4. Latin America Digital Payment Market Analysis & Forecast, By Deployment
9.4.5. Latin America Digital Payment Market Analysis & Forecast, By End User
9.5. Middle East & Africa
9.5.1. Middle East & Africa Digital Payment Market Analysis & Forecast, By Country/Region
9.5.1.1. South Africa
9.5.1.2. UAE
9.5.1.3. Saudi Arabia
9.5.1.4. Rest of Middle East & Africa
9.5.2. Middle East & Africa Digital Payment Market Analysis & Forecast, By Services
9.5.3. Middle East & Africa Digital Payment Market Analysis & Forecast, By Payment Mode
9.5.4. Middle East & Africa Digital Payment Market Analysis & Forecast, By Deployment
9.5.5. Middle East & Africa Digital Payment Market Analysis & Forecast, By End User
10. Competitive Landscape
10.1. Market Share Analysis (2022)
10.2. Market Positioning of Top Players (2022)
10.3. Key Developments & Growth Strategies (2020-2022)
10.3.1. Product Launches
10.3.2. Merges, Collaborations & Agreements
10.3.3. Expansion
10.4. SWOT Analysis
11. Company Profiles (Business Overview, Products Offered, Financial Details*, Recent Developments)
11.1. Visa Inc. (U.S.)
11.1.1. Company Snapshot
11.1.2. Business Overview
11.1.3. Financial Data
11.1.4. Key Products Offered
11.1.5. Recent Developments
11.2. Alipay.com Co Ltd (China)
11.3. Amazon.com Inc. (U.S.)
11.4. Alphabet Inc. (U.S.)
11.5. Samsung Electronics Co. Ltd. (South Korea)
11.6. PayPal Holdings Inc. (U.S.)
11.7. Global Payments Inc. (U.S.)
11.8. Wirecard (Germany)
11.9. Authorize.net (U.S.)
11.10. ACI Worldwide, Inc. (U.S.)
11.11. Paytm (India)
11.12. ACI Worldwide, Inc. (Australia)
11.13. Alphabet Inc. (U.S.)
11.14. Others
12. Appendix
12.1. Currency Exchange Rate to USD
12.2. Abbreviations
* Financial details captured might be subjected to information available and not be given for privately-held companies or for companies that do not report it in the public domain