Digital Payments Global Market Report 2022

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 is expected to grow from $83.27 billion in 2021 to $96.19 billion in 2022 at a compound annual growth rate (CAGR) of 15.5%. The market is expected to grow to $170.95 billion in 2026 at a compound annual growth rate (CAGR) of 15.5%.

The digital payments market consists of all the transactions that take place across the digital media along with the product and services associated.Digital payments is a payment mode that uses digital mediums 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.

The main types of digital payments are the point of sale, and online sale.Online sales refer to the sales of products and payments online.

The various deployments are cloud and on-premise. The services are used in retail, banking and financial service, telecommunication, government, transportation, other digital payments.

Asia Pacific was the largest region in the digital payments market in 2021.Western Europe was the second largest region in the digital payments market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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 innovator such as square and PayPal are using automation for decreasing the onboarding time to a few minutes.Digital payments are very easy to use compared to the 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, a population of about 23 million, nearly 10 million are mobile payments 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 digitalization of payments has led to security breaches incurring losses to the merchants and customers as well.

According to the American Express digital payments survey in 2019, 8 of 10 respondents have said they experienced some type of fraud in their business. The threat of security thereby hinders the digital payments market.

Contactless payments technology is soaring up in the digital payments market.Many users are increasingly opting for contactless payments technology such as mobile wallets, contactless cards, and others as there 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. Black Friday sales of 2019 had an 82% rise in the purchase made with mobile wallets.

In July 2019 Fidelity National Information Services, Inc., a US-based international company that provides financial services technology, and outsourcing services have acquired world pay for an amount of $43 Billion. This acquisition enhances the global technology position of FIS and also increases the company’s growth opportunities. It helps the FIS to serve its customers with new technology. World pay is a UK-based technology provider and payment processing company.

The countries covered in the digital payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.