1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
Digital Payments Market - Growth, Trends, Forecasts (2020 - 2025)

Digital Payments Market - Growth, Trends, Forecasts (2020 - 2025)

  • May 2020
  • 269 pages
  • ID: 5903691
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

- The transaction value of global mobile payments market was USD 3714.5 billion in 2019, and it is expected to reach a value of USD 12,407.5 billion by 2025, registering a CAGR of 23.8% over the forecast period 2020 - 2025. The global landscape of payments and transactions is changing rapidly, owing to the growing enterprises and consumer propensity toward digital transformation and proliferation of smartphones. The technological advancements in the space of smartphones, digital payment cards, and POS at retail terminals are fuelling the market growth.
- Government initiatives across the globe are helping enhance the global digital payment space; the emphasis on moving towards a cashless economy is driving favorable regulations; also, the digital payment ecosystem helps governments curb tax frauds and maintain money trails. ?
- For example, Italy has one of the lowest rates of credit cards used in the European region and has the highest VAT frauds in the region. To curb this, the government has set aside USD 3 billion for the next fiscal year to finance the bonuses to be offered as an incentive to those who use electronic payment services over cash.
- The global demand for smartphones is increasing significantly and with technological advancements such as 5G are expected to further augment the global smartphone numbers. According to Ericsson, in 2019, the global smartphone subscriptions stood at 5.6 billion and are expected to reach 7.4 billion by 2025 or 84% of all the subscriptions.? This is another major driving force for the market.
- Cross-border payments are usually slow and expensive to perform, but such payments play a vital role in global trade. The typical national banking infrastructure cannot handle cross-border payments, thus resulting in independent and non-uniform development in software platforms and technologies complicating such payments.

Key Market Trends
BFSI Segment to Dominate the Market

- Robust growth in the digital banking has made it imperative for banks to transform their existing operations into an omni-channel approach, involving web, mobile, or physical branch. Thus, banks are offering various forms of digital experiences such as online banking, digital banking, internet banking. mobile banking, and neo banking. ?
- As per Fujitsu’s Digital Transformation for Banking Services Report 2018, the motivation for digital transformation in BFSI industry is improvement of efficiency for the banking entity (31%), followed by growth generation (30%).?
- Online banking is being practiced by almost all banks to reduce the hassle of customers who want to visit the physical bank branch. Some banks even allow the customers to deposit cheque by simply taking a picture of it. As per Pepper’s change in Banking Report 2019, the easy and efficiency of performing transactions was the maximum reason why customers choose online banks. ?
- In emerging markets, such as China and India, the penetration of mobile banking is stronger as compared to developed markets. This is because population in these countries are price sensitive and mobile banking offers cash back, vouchers, and coupons that can be redeemed on future transactions?

India to Account for the Most Significant Share in Asia-Pacific

- Digital payments are a relatively new trend in India. However, it is growing at a fast pace due to favorable regulatory environment, infrastructure upgrades, high smartphone penetration, and subsidized data plans. ?
- The reason for high smartphone adoption is the launch of affordable phones by Chinese brands that offer flagship-grade features and capabilities. These brands’ target market is rural India, also, who are looking to upgrade their feature phones. Thus more Indians are relying on apps for facilities, such as grocery or fuel management. This is an enabler for mobile payments. ?
- Demonetization was a massive currency culling exercise taken up by the government in November 2016, which made 86% of the currency in circulation invalid. The step was taken to fight against black money, terror financing, and counterfeit currency. This was a major driving force for the adoption of digital payments. ?
- The Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society. Ministry of Electronics & Information Technology (MeitY) is working on strengthening of Digital Payment infrastructure and creating awareness through promotions of digital payments. ?

Competitive Landscape
The market is moderately concentrated. The competitive rivalry in the market studied is moderate, as a good number of players prevail. Despite the existence of several companies in the market studied, firms are required to keep innovating their products, in order to gain a sustainable competitive edge over their rivals and provide product differentiation.

- April 2020 - Amazon India plans to give zero-interest credit to customers to buy products on its platform or pay bills, partnering with lenders, like Capital Float and Karur Vysya Bank, for the initiative. The service will allow consumers to purchase essentials on Amazon’s platform.
- April 2020 - Paytm Payments Bank partnered with Mastercard to issue virtual and physical debit cards. The deal will see the bank’s beta customers issued with cards in an initial rollout, followed by its entire user base in short order.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.

ref:plp2020

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on