Major companies in the lending and payments market include China Construction Bank, Agricultural Bank Of China, JPMorgan Chase & Co., Bank of China, Industrial and Commercial Bank of China, Bank of America Corporation, Banco Santander, Citi Group, Wells Fargo & Company, and State Bank of India
The global lending and payments market grew from $8721.16 billion in 2022 to $9585.48 billion in 2023 at a compound annual growth rate (CAGR) of 9.9%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The lending and payments market is expected to grow to $13415.12 billion in 2027 at a CAGR of 8.8%.
The lending and payments include revenue by entities by providing secured or unsecured loans to borrowing entities, payment and money transfer services.The lending and payments industry is categorized on the basis of the business model of the firms present in the industry.
Some firms offering lending services may offer other services, financial or otherwise.Revenues from lending and payments services include interest on loans, margins or commissions charged on transactions, and not the loan or repayment values themselves.
The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
Lending is the act of allowing a person or organisation to use a sum of money in exchange for an agreement to repay it later, typically with interest. Payment instruments are systems that enable funds held in accounts at credit, payment or similar institutions to be transferred to a payee on receipt of a payment order.
Western Europe was the largest region in the lending and payments market in 2022.Asia-Pacific was the second largest region in the lending and payments market.
The regions covered in the lending and payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The main types of lending and payments are lending, cards, and payments.Cards and payments refer to the payment process through different types of cards.
The various lending channels are offline, online channels that are used by B2B and B2C end-users.
Artificial Intelligence is gaining prominence in the payments sector due to its various applications allowing businesses to synthesize data to improve customer experience.Artificial intelligence refers to the development of computer systems that can perform tasks using human intelligence.
Payment companies can improve their operational efficiency through AI, such as reducing processing times, error-free insights, and increasing automation.Many banking and non-banking institutions are using AI applications to monitor payment transactions from the point of payment message to the payment gateway.
For example, AI-enabled application chatbots are being adopted by payment firms as they can understand customer language and respond to customer queries on a real-time basis.AI machine learning is significantly used to improve fraud detection and reduce false transactions.
For instance, according to the latest Economist Intelligence Unit adoption study, 54% of financial services organizations adopted AI for payments for strengthening customer relationships.
Alternative lending is gaining traction as it gives loans to individuals and businesses who cannot access loans through traditional banking platforms.Alternative lending is becoming popular mainly because offering commercial loans to small businesses is deemed unprofitable by traditional banks.
Alternative lenders rely on advanced technologies such as big data to obtain data-driven insights, which can be used to quicken the overall lending process.This allows alternative lenders to earn profits on loans that are conventionally considered unprofitable by traditional lenders.
Examples of alternative lenders include Lending Club and OnDeck.
The countries covered in the lending and payments market are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The lending and payments research report is one of a series of new reports that provides lending and payments statistics, including lending and payments industry global market size, regional shares, competitors with lending and payments share, detailed lending and payments segments, market trends and opportunities, and any further data you may need to thrive in the lending and payments industry. This lending and payments research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.