Analysis of the Size and Share of the Payments Industry: Growth Trends and Outlook (2024-2029)

Analysis of the Size and Share of the Payments Industry: Growth Trends and Outlook (2024-2029)

Analysis of the Size and Share of the Payments Industry: Growth Trends and Outlook (2024-2029)

The research, which is broken down by payment methods (point of sale (card payments, digital wallets, cash), online sales (card payments, digital wallets), and end-user industries (retail, entertainment), covers the worldwide payment systems industry. Has been completed (hospitality, health care).

Analysis of the Payment Market

The size of the payments industry is projected to be US$2.85 trillion in 2024 and is anticipated to expand at a compound annual growth rate (CAGR) of 10.88% to reach US$4.78 trillion by 2029. Growing e-commerce, rising internet penetration, growing digitization, and the quick uptake of mobile payments are some of the major reasons propelling the market's expansion.

Digital payments are quickly replacing cash payments in the global payment system. Cashless transactions are becoming more common, which is fostering the expansion of digital economies and innovating payment infrastructure. Around the globe, contactless payments are steadily taking over as the preferred mode of payment in many nations. Near-field communication (NFC), rapid response (QR) codes, and face recognition are examples of contactless payment technologies at point of sale (POS) that are revolutionizing global payments. Consumers are growing more comfortable seeing the world via a digital lens following two years of altering working and buying habits online, according to Global Payments. According to statistics, over 50% of the company's customers see themselves as being more digital; 39% of them say they shop on a smartphone either weekly or daily, and 23% say they purchase online at least once a day.

Moreover, the global payments industry is expanding due to elements including rising internet and smartphone usage, government financial inclusion programs that encourage individuals in poorer nations to create bank accounts for the first time, and

Globally, advances in payment technology are still being made. In many parts of the world, particularly China and India, real-time payments are typical. For example, in February 2023, India's Unified Payments Interface, or UPI, and Singapore's PayNow were formally connected, providing 'real-time payments linkage'. As a result, cross-border person-to-person (P2P) payment services were introduced for the first time in Singapore. Similar to this, ACI Worldwide stated in January 2023 that ACI Instant Pay will be launched and made accessible in the United States. enables U.S. businesses to rapidly take payments from online, mobile, and in-store customers, allowing both local and pan-regional real-time plans to reach billions of people globally.

Additionally, since these methods are so simple to use, digital and mobile payment applications are expanding quickly in many nations. QR codes, Apple Pay, Google Pay, and other digital payment software options are constantly expanding. The global expansion of e-commerce has contributed to the proliferation of digital payments.

Although there are advantages to digital payment systems, there are also privacy and security threats that might hurt customers, businesses, markets, and countries while impeding progress. Payment systems need to be completely reinvented with unbreakable encryption, open standards, and privacy protection in mind. Strong market regulation and data privacy rules are also necessary.

The global pandemic of COVID-19 has brought to light significant shifts in payment practices worldwide, including a decrease in cash transactions, a shift from in-person to online shopping, a rise in the usage of quick payments, and an increase in the use of digital payments. Payments companies now have more opportunity to develop contactless and digital payment solutions because to the reforms made at COVID-19.

Trends in the Payment Market

Because of the expanding retail industry, global payments are becoming more popular.

Retail is the umbrella term for any businesses that offer products and services to customers. The retail sector saw significant transformation, particularly during the pandemic, as it quickly embraced digital products and changed to meet the demands of a changing consumer base that still has a strong need for physical stores. Customers now like to have the ease of utilizing contemporary technology together with the advantages of conventional purchasing habits. As a result, they may shop in a physical store or online using a tablet or smartphone. Can't. ,

In order for merchants to stay competitive, customers must have a simple, seamless experience. The National Retail Federation projects that annual retail sales in 2022 will reach US$4.9 trillion, an increase of 7% over 2021. Prior to the pandemic, the average yearly growth rate for retail sales was 3.6%. This growth rate is higher.

Customers may pay for things at your retail store in a variety of methods. For seamless payment checkout solutions, several payment solution provider businesses collaborate with e-commerce behemoths. In addition, a number of the biggest online retailers have already introduced digital wallets like Alipay and Amazon Pay in an effort to increase their market share. Additionally, this causes the global e-commerce industry to expand.

The majority of global e-commerce behemoths use another widely utilized payment option in online retail: Jo's purchase now, pay later services. Furthermore, real-time payment options like "buy now, pay later" are becoming prevalent at checkout counters worldwide. It is anticipated that BNLP will account for a significant portion of global payments as alliances between BNLP businesses, banks, and digital wallets flourish.

Global e-commerce sales were greatly influenced by the COVID-19 outbreak. As physical stores closed for the night, customers resorted to online shopping to make their purchases. The epidemic hastened the transition to internet purchasing with the help of electronic payment methods. In addition, m-commerce will keep growing in acceptance over the next several years. People may now purchase on their phones more easily because to technological innovations like social shopping, 5G wireless, and branded shopping applications.

The Asia-Pacific area is anticipated to expand at a notable CAGR.

Due to government efforts towards digitization, the increasing acceptance of e-commerce, and the sustained high growth rates of China's and India's economies, Asia-Pacific has emerged as the most significant and fastest-growing payments market area in recent years. Trade within the region.

Furthermore, a number of fintech businesses have launched their digital wallets in the Asia Pacific payments area, benefiting from a plethora of fintech activity aimed at digitalizing small merchants and boosting overall company efficiency.

More payments income is generated in China than in any other major region worldwide, and it enjoys a substantial market share in the Asia Pacific area. Furthermore, significant industry participants like UnionPay and Alipay are extending their offerings around the area by using cutting-edge payment methods.

In addition, the expansion of real-time payments in the Asia Pacific area is ascribed to its development. In the Indian payments market, the real-time payment system is a major source of income. The growth of purchase now, pay later services also drives the Asia Pacific payments sector. Bilateral cross-border payments activity has also grown quickly as a result of easier access to real-time payment rails. This market has a lot of opportunity for value-added services, especially in the corridors that connect Singapore, Indonesia, and Thailand.

Cash use decreased as a result of the COVID-19 epidemic, especially in areas like Indonesia and Thailand, which opened up new prospects for digital income. The vast majority switched over to card- and digital wallet-based methods for good.

Overview of the Payments Industry

With so many participants, the payments sector seems to be fractured in terms of competition. These major organizations compete in the industry by acquiring smaller companies and by providing cutting-edge digital payment solutions. PayPal Holdings Inc., UnionPay International, MasterCard Inc., and Visa Inc. are some of the major companies in the worldwide payments business. Are included.

To capitalize on the expanding momentum in the credit card industry, TD Bank introduced a new range of credit card products in May 2023. The business also unveiled TD FlexPay, which is regarded as TD's most flexible credit card to date and comes with payment flexibility and alluring balance transfer offers. The latter is a no-interest credit card that levies a flat monthly fee, a groundbreaking idea in the US market.

The world's first debit card with NFT avatar customisation was unveiled in September 2022 by Hi, a cryptocurrency and fiat banking app backed by Mastercard. When a cardholder meets the requirements, they may add an NFT avatar to the front of their card, which they can then use to make purchases at more than 90 million MasterCard-accepting establishments throughout the globe. There were six different Hi Debit Card variations, each offering a different set of perks based on membership level.

To accelerate the adoption of digital payment solutions in the Middle East as well as North Africa (MENA), Mastercard as well as  Saudi Arabian e-commerce payment service provider Hyperpay formed a strategic agreement in May 2022. The collaboration wants to assist governments, SMEs, and companies in making the switch from cash to digital payments. Furthermore, MasterCard led a $40 million fundraising round for Hyperpay as part of the agreement.

News about the Payment Market

March 2023: The US Federal Reserve plans to introduce its digital payments system this year, aiming to build a state-of-the-art system that is accessible, versatile, and adaptable. The program's objectives are that the system should enable faster and less expensive processing of bill payments, money transfers, government payouts and disbursements, and other consumer operations.

January 2023: To encourage RuPay debit cards and low-value BHIM UPI transactions, the Indian Union Cabinet allocated a budget of Rs 2,600 crore. Banks will get cash incentives under the initiative to encourage Point of Sale (POS) and online purchases made using RuPay and UPI during the current fiscal year.

Table of Contents for the Payment Market Report

.customize-toc li { display: block; margin:7px 0; } .customze-toc > ol > li > p { background-color: #f5f5f5; padding: 5px 5px 5px 15px;} .customize-toc > ol > li {margin-bottom: 15px;} 1. Introduction1.1 Study assumptions and market definitions1.2 Scope of the study2. Research Methodology3. Executive Summary4. The market insights, market overview, industry stakeholder analysis, industry attraction, Porter's Five Forces analysis, supplier bargaining power, buyer/consumer bargaining power, threat of new entrants, threat of substitute products, intensity of competitive rivalry, evolution of the global payments landscape, growth of cashless transactions, and COVID-19's impact on the global payments market are all included in this report. The market is expected to grow due to the following factors: 5.1.1 E-commerce, which is supported by the rise of M-commerce; 5.1.2 Major retailers and government-enabled programs are encouraging the market to become more digital; 5.1.3 Real-time payment growth across countries; 5.2.2 Market Challenges; 5.2.1 Challenges Relating to Privacy and Security of Digital Payments; 5.3.1 Moving Towards a Cashless Society; 5.3.2 Promoting Innovation by New Entrants to Drive Higher Adoption; 5. 4 Key rules and standards in the digital payments sector etc.5.7 Analysis of the rising focus on customer satisfaction and convergence of global trends5.8 Analysis of cash displacement and increase of contactless payment modes6. Market Segmentation6.1 Modes of Payment6.1.1 Point of Sale6.1.1.1 Card Payments (includes debit cards, credit cards, bank financing prepaid cards)6.1.1.2 Digital Wallets (includes mobile wallets)6.1.1.3 Cash6. 1.1.4 Other Points of Sale 6.1.2 Online Sales 6.1.2 Card Payments (Debit, Credit, and Bank Financing Prepaid Cards) 6.1.2 Digital Wallets (Mobile Wallets) 6.2.2 Other Online Sales (Cash On Delivery, Banks Included) Transfer, and Buy Now, Pay Later 6.2 By End-User Industry 6.2.1 Retail 6.2.2 Entertainment 6.2.3 Healthcare 6.2.4 Hospitality 6.2.5 Other End-User Industries 6.3 By Geography 6. 3.1 North America6.3.2 Europe6.3.3 Asia-Pacific6 .3.4 Latin America6.3.5 Middle East and Africa7. Competitive Landscape7.1 Company Profile7.1.1 Mastercard Inc.7.1.2 Visa Inc.7.1.3 Alipay (Alibaba Group)7.1.4 UnionPay International7.1.5 PayPal Holdings, Inc.7.1.6 Google Pay (Google LLC)7.1.7 Apple Pay (Apple Inc.)7.1.8 Amazon Pay (Amazon.com, Inc.)7.1.9 American Express Company7.1.10 Adyen*List is not exhaustive 8. Analysis of Investments 9. prospects for the future market

Division of Payment Industry

Online payments for products and services, such as those made on e-commerce websites and for travel and lodging, are referred to as e-commerce payments. The market's purview excludes automobiles, real estate, mortgage payments, credit card bills, utility bill payments (including water, heating, and electricity), and online stock and bond transactions. In the case of point-of-sale, all transactions taking place at the actual point of sale are within the purview of the market. This covers conventional in-store purchases and all face-to-face transactions regardless of the location of the transaction. In both situations, cash is also taken into account (cash-on-delivery for e-commerce purchases). In order to support estimates of the worldwide market and growth rates for the anticipated time, the research monitors key market data, underlying growth drivers, and significant industry vendors. The report examines COVID-19's overall effects on the international payments environment.

The global payments market is segmented on the basis of payment methods (Point of Sale (Card Payments (Debit Cards, Credit Cards, Bank Financing Cards), Digital Wallets (Mobile Wallets), Other Payment Methods (Cash on Delivery, Bank Transfer, Buy Now) Pay Later)), (Online Sales (Card Payments (Debit Card, Credit Card, Bank Financing Card), Digital Wallet (Mobile Wallet), Other Online Sales (Cash on Delivery, Bank Transfer, Now buy pay later)), end-user industries (retail, entertainment, healthcare, hospitality) and geographies (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market value in USD is shown for each of the aforementioned Size and anticipated volumes.

FAQ for Payment Market Research

How large is the world market for payments?

The size of the global payments industry is projected to be US$2.85 trillion in 2024 and US$4.78 trillion by 2029, growing at a compound annual growth rate of 10.88%.

How big is the global payments market at the moment?

By 2024, the size of the global payments industry is projected to be US$2.85 trillion.

Which companies dominate the Glo Child Payments market?

The main players in the worldwide payments industry are Mastercard Inc., Visa Inc., PayPal Holdings, Inc., Alipay (Alibaba Group), and UnionPay International.

The region from which the fastest-growing global payments market is emerging?

Throughout the projection period, Asia-Pacific is anticipated to expand at the highest CAGR (2024-2029).

Which area of the global payments market has the most share?

Asia-Pacific will have the biggest market share for payments worldwide in 2024.

What was the size of the global payments market in 2023, and which years is it covering?

The size of the global payments market was projected to reach US$2.57 trillion in 2023. The market size of the global payments market in the past for the years 2019, 2020, 2021, 2022, and 2023 is included in the research. The research also projects the worldwide payments market size for the years: 2024, 2025, 2026, 2027, 2028 and 2029.