Major players in the digital payments market are Alipay, Amazon Pay, Apple Pay, Tencent, Google Pay, First Data, Paypal, Fiserv, Visa Inc., and MasterCard.
The global digital payments market will grow from $96.19 billion in 2022 to $111.11 billion in 2023 at a compound annual growth rate (CAGR) of 15.5%. 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, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The digital payments market is expected to grow to $197.87 billion in 2027 at a CAGR of 15.5%.
The digital payments market consists of revenues earned by entities that are engaged in facilitating payment transfers through digital medium such as the internet, cell phones and automated devices.The payments industry consists of establishments primarily engaged in processing money transfers and payments between various accounts.
This includes all institutions involved in payment processing such as banks, non-banking financial institutions, and others.Revenue generated from the payments market includes all the processing and services fees levied by the banks and financial institutions for payment processing.
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.
Digital payments are a payment mode that uses digital medium such as the internet, cell phones and automated devices to send and receive money. It needs both payer and payee to use the digital means to send and receive money, it is not mandatory in some situations for the payee to use a digital medium to receive money.
Asia Pacific was the largest region in the digital payments market in 2022.Western Europe was the second largest region in the digital payments market.
The regions covered in the digital payments report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of digital payments are point of sale and online sales.Online sales refer to the sales of products and payments made online.
The various deployments are cloud-based and on-premise. The services are used in retail, banking and financial services, telecommunications, government, transportation, and other digital payments.
Quick onboarding and ease of use are expected to drive the digital payments market.Individuals require flexibility, transparency, and friction-free onboarding.
They are more attracted to such methods which are frictionless, and as a result, software innovators such as Square and PayPal are using automation to decrease the onboarding time to a few minutes.Digital payments are very easy to use compared to conventional methods as they only require a bank account or phone number and a smartphone with an internet facility.
For instance, according to new data compiled by Taiwan’s government, out of a population of about 23 million, nearly 10 million are mobile payment users. The ease of adoption increases the number of users, thereby contributing to the growth of the market.
A breach in security is expected to hinder the digital payments market globally.The increase in the digitalization of payments has led to security breaches, incurring losses to merchants and customers as well.
According to the 2022 AFP® Payments Fraud and Control Survey, 71% of the respondent organizations were victims of payment fraud or attempt. The threat of security thereby hinders the digital payment market.
Contactless payment technology is soaring in the digital payments market.Many users are increasingly opting for contactless payment technologies such as mobile wallets, contactless cards, and others as they are more secure and convenient to use.
Contactless payment technology uses radio frequency identification (RFID) or near-field communication (NFC) for the transmission of amounts among users. Mobile payments transaction volume reached $1.7 billion in 2021 whicvh was a 27% increase as compared to 2020.
In August 2022, Razorpay, a Bengaluru-based fintech startup, acquired 80% stake in Ezetap for an undisclosed amount.The acquisition would strengthen the digital payments infrastructure of Razorpay and help it better serve the customers.
Ezetap is a Bengaluru-based digital payments startup.
The countries covered in the digital payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The digital payments research report is one of a series of new reports that provides digital payments statistics, including digital payments industry global market size, regional shares, competitors with digital payments share, detailed digital payments segments, market trends and opportunities, and any further data you may need to thrive in the digital payments industry. This digital 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.