How big is the digital payments market?

How big is the digital payments market?

How big is the digital payments market?

summary of the report

The worldwide digital payments market size was assessed at US$81.03 billion in 2022 and is predicted to increase at a compound annual growth rate (CAGR) of 20.8% from 2023 to 2030. In 2022, it was projected that the value of digital payment transactions worldwide will surpass $8 trillion. One of the main reasons propelling the market's expansion is the growing inclination among consumers for real-time payments around the globe. McKinsey & Company research indicates that India had 25.6 billion real-time transactions in 2020, a 70% increase from 2019. The growing use of mobile wallets is the reason for this notable surge in real-time payment usage. nation. E-commerce service providers are shifting from conventional consumer finance and credit card solutions to customer engagement solutions that use digital payments in an effort to improve their competitive position.

Additionally, e-commerce businesses are trying to extend their offers in the digital payments space by implementing their point-of-sale systems. Retail behemoths such as Shopify and Amazon, for instance, are creating point-of-sale systems that can process transactions both online and in-store. In order to preserve their market position, banks are being encouraged by these changes to enhance their digital payment systems. Governments everywhere are extending the reach of contactless payment cards, therefore opening up new avenues for market expansion.

For example, in October 2021, the Treasury and Financial Conduct Authority (FCA) upped the contactless payments limit in the UK from USD 50.92 to USD 113.16. This restriction was earlier increased by the FCA in April 2020 from USD 33.95 to USD 50.92 when COVID-19 struck. 19 methods to prevent interaction between payment terminals and purchasers. Global adoption of 5G networks is anticipated to pick up speed, which will further propel market expansion. People may easily use mobile devices to make payments and make online purchases when they have strong network access.

Furthermore, improved 5G connection facilitates the more efficient implementation of fraud protection strategies by digital payment service providers. By 2025, the GSM Association predicts that 5G networks will reach almost one-third of the global population. In the midst of the COVID-19 epidemic, digital payment solution providers and transportation and logistics firms are collaborating to use technology to preserve social separation. For instance, mobile services integrator Drivity received funding from commercial transportation solutions vendor Eurowag in April 2021. The former firm hopes to provide its clients fleet management services for their cars via this arrangement.

Impact study of COVID-19

Positive market effects from the COVID-19 epidemic include a sharp rise in online sales and a rise in the use of online payment methods. During the epidemic, consumers all across the globe have switched from in-person to internet buying. A media entity called Digital Commerce 360 reports that third-quarter US internet sales in 2021 were around US$204.62 billion, up 6.8% over the same period in 2020. Customers' worries about being in crowded areas during the epidemic are driving up demand. Internet-based shopping.

insight into the solution

In 2022, the payment processing industry had a dominant market share, contributing about 26.0% of the total worldwide revenue. Globally, consumers' increased preference for online shopping is pushing merchants to implement payment processing solutions in order to provide them a smooth checkout procedure. In order to increase their market position, companies offering payment processing solutions concentrate on partnerships and mergers and acquisitions. For instance, PXP Financial Inc., a supplier of payment processing services, and Shift4, a provider of payment processing solutions, announced their collaboration in October 2021.

The previous corporation increased its capabilities in the US market with this alliance. Over the course of the projection period, the payment gateway sector is anticipated to develop at the quickest CAGR. Because they make payments easier, payment gateway solutions are in high demand among retailers. Payment gateways are also used for in-store transactions, enabling clients to use their cellphones and the internet to make purchases. The expansion of this market is thus driven by the growing adoption of payment gateways by in-store retail businesses.

Details of Payment Methods

In 2022, the Point of Sales sector will have a dominant market share of over 51.0% of worldwide sales. Retail establishments employ point of sale systems to handle transactions. Benefits from these systems include various payment methods, personalized customer experiences, and quicker checkout times. Globally, retailers are using cloud-based point of sale systems to boost productivity and enhance customer satisfaction.

Over the course of the projection period, the net banking sector is anticipated to increase at a substantial pace. superiorThe advantages of online banking, such as its ability to save time, facilitate banking, and monitor activities, are some of the main reasons propelling this market's expansion. As a consequence, the number of people using online banking is rising in many different nations around the globe. In 2020, around 80% of US internet users accessed their bank accounts online, according eMarketer research.

deployment knowledge

In 2022, the on-premise sector had a dominant market share of over 64.0% of the worldwide revenue. Organizations may simply manage applications and systems with complete control thanks to on-premise digital payment implementation, which is readily handled by the organization's IT department. One of the main reasons pushing the need for on-premise solutions among enterprises is the rising incidence of financial thefts during the COVID-19 epidemic. The amount of worldwide payments fraud climbed from US$9.84 billion in 2011 to US$32.39 billion in 2020, according to statistics from merchant services provider Merchant Savvy. This amount is expected to grow by 25% by 2027 to US$40.62 billion.

Over the course of the projection period, the cloud sector is anticipated to develop at the greatest CAGR. One of the main reasons propelling the expansion of this industry is the increased number of unmanned retail establishments in conjunction with the ongoing deployment of smart city initiatives. The development of this market is also anticipated to pick up speed due to payment businesses' attempts to incorporate artificial intelligence capabilities into their systems. For instance, the financial services corporation MasterCard and the AI-powered payments startup Prewise announced in October 2021 that they were integrating the payments platform MasterCard Cross-Border Services into Prewise's InstantPay platform. Companies will be able to instantly pay their suppliers anywhere in the globe thanks to this partnership.

Enterprise Dimensions: An Analysis

In 2022, the market was led by the big enterprise size segment, which generated over 59.0% of worldwide revenue. In order to allow their consumers to make purchases while keeping social distance, large retail businesses are putting more and more pressure on digital payment systems. Retailers employ digital payment options including e-wallets, point of sale systems, and smart banking cards to shorten checkout lines. Retailers are likewise concentrating on offering clients cutting-edge payment options at the same time. For instance, online consumers may now purchase now and pay later thanks to a collaboration between financial services company Klarna and payments solutions provider Afterpay, which was announced in October 2020.

Over the course of the projection period, the small and medium-sized business category is anticipated to increase at the quickest rate. Paper-based billing systems are costly, prone to mistakes, and inefficient, which is why small and medium-sized businesses are switching to digital invoicing. Payment solution providers are concentrating on forming alliances with small and medium-sized businesses to aid in their transition to digitalization. For instance, payments technology firm BlueSnap purchased Armatic, a supplier of invoicing automation systems, in October 2019. BlueSnap improved its digital payment options with this purchase.

Final-Use Knowledge

In 2022, the market was led by the banking, financial services, and insurance (BFSI) sector, which generated over 23.0% of worldwide revenue. Banks are being encouraged to implement digital payment solutions by the rising demand for digital remittances for both local and international transactions. In order to compete with companies that provide digital payment solutions, such as Google, Amazon, and Facebook, banks are also improving their services. For instance, Bank of America launched a digital debit card in June 2019 to provide its clients more ease.

Over the course of the projection period, the retail and e-commerce industry is anticipated to develop at the quickest rate. One of the main reasons fueling this segment's rise is consumers' growing reliance on mobile-based payment solutions for retail transactions. The market is expanding due in part to the growing number of unmanned retail locations throughout the world. The unmanned retail market in China is expected to generate US$503.25 million by 2020, according to a report by financial services company Televisery.

local knowledge

In 2022, North America had the greatest revenue share of nearly 34.0% and dominated the worldwide market. Technology advancements and the growing use of smart parking meters are beneficial to the regional industry. For instance, parking solutions supplier ParkMobile and convenience services provider EasyPark announced their collaboration in July 2020. The old business offered contactless payments throughout Vancouver thanks to this collaboration. In addition, there is a growing need for digital payment solutions in the US due to the rise of unmanned storefronts.

For instance, Ahold Delhaize, a supermarket located in the Netherlands, announced the launch of its cashier-less shop in OPP in November 2019. Over the course of the projected year, Ahold Delhaize is anticipated to enjoy substantial growth. European banks are making an effort to start a European payments program that would provide uniform payment options for consumers and businesses across the area. Over the course of the projection period, new growth prospects for the market are anticipated as a result of these activities. The regional market is expanding thanks in part to the digital campaign the Italian government undertook to promote electronic payments across the nation.

Large corporations and market share data

The market's competitive environment is very fragmented. To improve their position in the market, market participants concentrate on tactics including alliances, joint ventures, product innovation, R&D, and regional growth. Because on-premises digital payment systems provide security-related advantages including enhanced security and higher customer satisfaction, merchants use them. In order to stay competitive and better satisfy the evolving demands of customers, market competitors are concentrating on improving their product offerings.

For instance, in October 2020, Alliant Payments said that XRP, an independent digital asset that is open-source, has been introduced to its platform via the CryptoBucks mobile app, which is powered by Alliant Payments. Mobile applications for iOS and Android will support XPR. The Cryptobucks app now supports XRP, enabling businesses to take payments online and in-person for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Several prominent entities in the worldwide digital payments industry include:

Coordinated Payments

Aurus Inc.

Adyen

Financial Software & Systems Pvt. Ltd.

Holdings PayPal Inc.

Private Limited Novatti Group

Worldwide ACI, Inc.

Global Payments Inc.

wirecard

Authorize.net

All System Services, Inc.

Report sections

The research contains analysis of the most recent market trends in each sub-segment from 2017 to 2030, as well as revenue growth forecasts at the national, regional, and worldwide levels. Grand View Research has divided the worldwide digital payments market research into segments according to end use, deployment, enterprise size, payment mechanism, solution, and region for the purposes of this study:

Solutions Outlook (Billion USD in Revenue from 2017 to 2030)

interface for application programs

gateway for payments

payment procedure

Security of Payments and Fraud Handling

management of transaction risk

Other

Outlook for Payment Types (Revenue, USD billion, 2017–2030)

Credit card

virtual money

electronic wallet

online banking

point of sale

Other

Deployment Outlook (Billion USD in Revenue from 2017 to 2030)

Cloud

Based on

Outlook for Enterprise Size (Revenue, USD billion, 2017–2030)

big businesses

small and medium-sized businesses

End-use Outlook (Billion USD in Revenue from 2017 to 2030)

BFSI

Medical care

Telecom and IT

Entertainment & Media

Shops and Online Shopping

conveyance

Other

Regional Outlook (Billion USD in Revenue, 2017–2030)

North America

We.

Canada

Europe

Germany

U.K.

Asia-Pacific

China

India

Japan

South America

Brazil

Africa and the Middle East

FAQs pertaining to this report

What is the market size for digital payments?

b. The size of the worldwide digital payments industry is anticipated to grow from US$81.03 billion in 2022 to US$96.07 billion in 2023.

How is the market for digital payments expanding?

B. From 2023 to 2030, the worldwide digital payments industry is projected to expand at a compound annual growth rate of 20.8%, reaching a value of US$361.30 billion.

In the market for digital payments, which industry has the most share?

B. With a 34.90% market share in digital payments in 2022, North America will lead the world. This is because there are several vendors of digital payment solutions in the area. Other factors propelling the market include the growth of the digital economy in North America and the industry's development in mobile commerce.

Who are the leading companies in the market for digital payments?

B. Total System Services, Inc.; Wirecard AG; Novelty Group Limited; PayPal Holdings Inc.; ACI Worldwide Inc.; and Adyen N.V. are a few of the major companies involved in the digital payments industry.

What are the commercial forces behind digital payments?

B. Growing government measures to support digital payments and rising smartphone penetration are the main drivers of the digital payments market's development.