Digital Payment Market – Global Industry Analysis and Forecast (2022-2029)

Digital Payment Market was valued at USD 69.55 Billion in 2021, and it is expected to reach USD 285.38 Billion by 2029, exhibiting a CAGR of 19.3 % during the forecast period (2022-2029)

Digital payments are payments made through digital or online channels that do not entail the exchange of actual currency. This type of payment, also known as an electronic payment (e-payment), is the transfer of value from one payment account to another in which both the payer and the payee utilize a digital device such as a mobile phone, computer, or credit, debit, or prepaid card. A firm or an individual might be the payer and payee. This means that in order for digital payments to take place, both the payer and the payee must have a bank account, an online banking method, a device from which to make the payment, and a medium of transmission, which means they must have signed up to a payment provider or an intermediary such as a bank or a service provider. UPI, NEFT, AEPS, mobile wallets, and PoS terminals are all examples of digital payment methods. UPI is the most popular method in digital payment market, with transactions exceeding USD 1 trillion in value.

The switch to digital payments and receipts offers some obvious advantages, particularly for small enterprises. Consumers and companies are now expecting digital payments to be accessible for faster and more secure payments with no risk or fees. The payer possesses a mobile phone, which allows for further validation by fingerprint or other verification or biometric approach, so reducing risk. Going cashless has various advantages for commercial transactions as well. Cash management is no longer required, lowering the danger of theft and lowering the expense of security and storage majorly drives the growth of digital payment market. Digital payments are frequently faster transactions, resulting in shorter lines and boosting the customer's in-store experience. Thus, customer convenience drives purchases. A clear trail is accessible for easy accounting, assisting in the simplification of operations and tax compliance.
Research Methodology
The research report relies heavily on both primary and secondary data sources. The research process entails the investigation of various factors affecting the digital payment market, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast. This data is combined and added with detailed inputs and analysis, and presented in the report.

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Digital Payment Market Dynamics
Initiatives for the Promotion of Digital Payments: Countries all across the world use ICT technology to boost digital payment market. Various attempts are being undertaken by governments to automate the payment process. One of the key growth imperatives for a country's economy is digital payment. It has the potential to raise productivity and economic growth, improve transparency, increase tax revenue, extend financial inclusion, and provide end users with new economic options. The Indian government has initiated a number of measures to encourage digital payments. Digital India, the debut of the Unified Payments Interface (UPI), and the 14444-helpline number all work as accelerators in the migration to digital payments.

These activities serve to promote digitalization and raise awareness about the benefits of utilising new technology. Other nations, like Singapore and Australia, have started a variety of digital payment projects. The Monetary Authority of Singapore (MAS) has recommended consumers and companies to adopt digital financial services and ePayments, and to limit visits to Financial Institutions' premises, in response to the COVID-19 epidemic and to attain heightened safe distance measures (FIs).

Rapid Decline in Unbanked Population: A huge portion of the world's population lives in rural and isolated areas. This demographic is underserved in terms of connectivity and digital literacy. Governments, development organisations, and private-sector actors now understand the value providing financial services to a huge population living in rural and distant areas. As a result, more individuals have access to financial services. Governments make attempts to develop various projects to link these people in order to promote financial inclusion. According to the World Bank's 2018 estimate, approximately 190 million individuals in India do not have bank accounts. However, as a result of the Indian government's efforts and initiatives, the proportion of people holding bank accounts climbed from 53% in 2014 to 80% in 2017.

Furthermore, according to the Global Findex database 2018, the percentage of adults in the world with bank accounts increased from 61% in 2014 to 69% in 2018. Digital payments are important in expanding the number of individuals who have bank accounts since the payment bank feature allows people to create and operate bank accounts using mobile phones even in distant areas. The use of digital wallets is having a huge influence on financial inclusion. As a result, the decreasing number of unbanked people throughout the world creates an ideal climate for digital payment companies to expand their client base.

Evolving Cyber Attacks on Digital Payments: Cyberattacks are a significant impediment to the growth of the digital payment market. These attacks are the most serious problems that the payment sector has faced in a long time. The growing use of digital payment systems is also raising cybersecurity dangers such as cyber theft and fraud. Accepting payment technologies and integrating them into enterprises has raised worries about privacy, theft, and regulatory compliance. Businesses are being impacted by new and emerging cyber assaults that use mobile malware to sneak into payment systems and steal cardholder data. Friendly fraud, affiliate fraud, botnets, phishing, velocity attacks, and triangulation are examples of evolving scams.

According to the Central Statistics Office (CSO), the yearly loss from cyber assaults would reach USD six trillion by 2021, up from USD three trillion in 2015. Furthermore, according to the Association for Financial Professionals (AFP) Payments Fraud and Control Survey Report of 2020, more than 81% of firms global faced cyber assaults in 2019. As a result, the increased incidence of cyber assaults is projected to delay the adoption of digital payment systems. Furthermore, according to the 2018 AFP Payments Fraud and Control Survey Report, more than 86% of firms faced cyberattacks. As a result, the growing number of cyber assaults is projected to hinder the adoption of digital payment systems and services.



Lack of Global Standards for Cross-Border Payments: Year on year (YoY), cross-border commerce has increased as more companies purchase products and services from across the world. However, digital payment suppliers are unable to leverage on this potential due to a lack of global payment systems that provide simplicity of use, a lack of global standards, and varying government restrictions in various nations. Payment rules and data storage requirements varies by country. These rules and restrictions make cross-border payments inefficient. Furthermore, the domestic payment infrastructure is not suited for cross-border transactions.

Several countries have built both high- and low-value payment systems based on proprietary communication and security standards throughout the previous few decades. However, as payment systems evolve independently, there is a greater demand for standardisation and automation across inter-bank and intra-bank networks between nations. This has a negative impact on banks and businesses, and it frequently necessitates direct intervention to collect and restore data. Intra-bank transactions allow major banks with subsidiaries and branches to transfer funds to destination nations. Beneficiaries are either immediately credited in their foreign operation account, or payments are delivered to their bank via bilateral transfers or national clearing and settlement procedures.
Digital Payment Market Segment Analysis
Based on solution, in 2021, the payment processing segment dominated the digital payment market, accounting for about 25.0 % of global revenue. Retailers are adopting payment processing solutions to provide customers with flawless checkout experiences as their preference for online shopping grows around the world. Fortifying their market presence, players providing payment processing solutions are working on mergers and acquisitions as well as collaborations. PayU, for example, purchased Red Dot Payment, a payment solution provider, in July 2019 to extend its position in Singapore.

Based on mode of payment, in 2021, the point-of-sale segment dominated the digital payment market, accounting for more than 52.0 % of global revenue. The systems used by retail businesses to conduct transactions are known as point of sales. Fast checkout choices, a tailored customer experience, and different payment options are all advantages of using a point of sale. Several merchants and restaurants use the point-of-sale payment method to improve their customers' payment experiences. For example, Grubhub, an online food ordering service, announced a partnership with ParTech Inc., a developer of point-of-sale systems, in January 2020, to integrate point-of-sale technologies into its food ordering process.

Over the forecast period, the net banking segment is expected to grow at the fastest rate. Net banking's advantages, such as increased time efficiency, simplicity of banking, and activity tracking, are among the primary factors driving the segment's rise. In recent days, internet banking customers have increased in a number of countries throughout the world. One of the factors fueling the segment's growth is rising internet penetration. According to eMarketer, in 2020, nearly 80% of internet users in the United States will be able to access their bank accounts digitally.

Based on deployment, in 2021, the on-premise segment dominated the market, accounting for about 65.0 % of global revenue. Digital payment solutions that are deployed on-premise give businesses complete control over their apps and systems, which can be easily controlled by their IT team. Organizations also utilize on-premise digital payment solutions to protect their apps and systems from harmful threats. Microsoft, for example, announced a partnership with ACI Global in November 2019. ACI World wide’s on-premises customers benefited from the collaboration, which included lower long-term capital expenditure and greater security.

Based on enterprise size, in 2021, the big enterprises segment led the digital payment market, accounting for over 60.0 % of global revenue. Large retail businesses have a lot of foot traffic, which necessitates the use of digital payment systems for quick checkouts. Customers can enjoy a more convenient checkout process with digital payment systems that support a variety of digital payment methods such as smart banking cards, point of sale, and e-wallets. At the same time, businesses are working on providing customers with innovative payment options. For example, in October 2020, Klarna announced a partnership with after pay to offer online clients Buy Now Pay Later services.

Based on end-user, in 2021, the BFSI sector dominated the market, accounting for more than 23.0 % of global revenue. Over the forecast period, an increase in remittances to low- and middle-income nations is likely to be one of the primary factors driving new market growth prospects. In order to compete with digital payment solution providers such as Google, Amazon, and Facebook, banks are also enhancing their capabilities. In June 2019, Bank of America, for example, launched a digital debit card to make life easier for its clients.
Digital Payment Market Regional Insights
North America dominated the global market in 2021, accounting for more than 34.0% of total sales. Factors such as increased deployment and technological advancements in smart parking metres boost the regional market. For example, ParkMobile, a parking solution provider, established a cooperation with EasyPark, a facilities service provider, in July 2020. The previous firm facilitated contactless payments across Vancouver as a result of this collaboration. Furthermore, the growing number of unmanned establishments in the United States is increasing demand for digital payment solutions.

For example, in November 2019, Ahold Delhaize, a Dutch supermarket chain, announced the establishment of a cashier-less shop in the United States. Europe is expected to increase significantly throughout the forecast period. Banks in Europe are working to develop a European payment initiative that will provide a single payments system for retailers and customers throughout the area. Over the forecast period, such initiatives are likely to generate new development prospects for the market. Furthermore, the Italian government's digital drive to expand electronic payments in the country is fueling regional market growth.

Digital wallets are the most popular payment option for both e-commerce and point-of-sale (POS) payments in the Asia-Pacific area. During the forecast period, digital wallet payments are expected to account for three-quarters of e-commerce payment methods and more than half of POS payments in the Asia-Pacific area. Currently, the transaction value of e-commerce payments exceeds that of POS payments; however, this difference is expected to narrow in the future years. Furthermore, digital remittances are a tiny but substantial portion of digital payments since many Asian customers value the ability to send money to family and friends. During the forecast period, the Asia-Pacific area is predicted to develop at a rapid pace. In terms of digital payment usage rate, user demographics, and preferred payment methods, the Asia-Pacific region contains diverse markets. China has the most digital payment users and the greatest mobile proximity payment penetration rate.



China has gathered over 3,000 billion US dollars in digital payment transactions in the last year. In comparison to the rest of the region, China had the greatest use of digital wallets for both e-commerce and POS payments. The following countries had t6he largest digital payment markets in the Asia-Pacific region: Japan, South Korea, and India. Credit cards were the most popular payment method for both e-commerce and POS purchases in Japan and South Korea. While cash was the most commonly used payment method for POS transactions in India, digital wallets were the most commonly used payment method for e-commerce. In compared to the region's growing economies, more mature markets such as South Korea, Japan, and New Zealand had a larger proportion of their elder population adopting digital payments.
Report Scope:
The Digital Payment Market research report covers product classification, product Battery, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The report discusses the global market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and restraints on market demand during the forecast period. The research also outlines market potential on a global scale. The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of main Digital Payment Market firms in terms of production bases and technologies. The more precise study also contains the primary market and consumer Battery sectors, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an industry chain relationship analysis. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and Battery.
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Global Digital Payment Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 69.55 Bn.


Forecast Period 2022 to 2029 CAGR:
19.3%
Market Size in 2029:
US $ 285.38 Bn.


 Segments Covered:
by Technology
• BEV
• PHEV
• HEV


by Product
• Hatchback
• Sedan
• SUV
• Others


by Battery
• LFP
• Li-NMC
• Others


by Battery Capacity
• >201 Ah
• <201 Ah


by End-User
• Shared mobility providers
• Government organizations
• Personal users
• Others.



Digital Payment Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Digital Payment Market Key Players
• Total System Services, Inc.
• Wirecard AG
• Novetti Group Limited
• PayPal Holdings Inc.
• ACI Worldwide Inc.
• Adyen N.V.
• Aurus
• Aliant Payments
• Alipay
• Apple Pay
• Dwolla
• FattMerchant
• FIS
• Fiserv
• Global Payments
• Intuit
• JPMorgan Chase
• Mastercard
• PayPal
• Paysafe
• PayTrace
• PayU
• Spreedly
• Square
• Stripe
• Visa
• WEX
• Worldline
• 2Checkout
Frequently Asked Questions:
1. Which region has the largest share in Global Digital Payment Market?
Ans: North America region holds the highest share in 2021.

2. What is the growth rate of Global Digital Payment Market?
Ans: The Global Digital Payment Market is growing at a CAGR of 19.3 % during forecasting period 2022-2029.

3. What segments are covered in Global Digital Payment market?
Ans: Global Digital Payment Market is segmented into solution, mode of payment, deployment, enterprise size, end-user and region.

4. Who are the key players in Global Digital Payment market?
Ans: The important key players in the Global Digital Payment Market are – Total System Services, Inc.;, Wirecard AG;, Novetti Group Limited;, PayPal Holdings Inc.;, ACI Worldwide Inc.;, Adyen N.V., Aurus, Aliant Payments, Alipay, Apple Pay, Dwolla, FattMerchant, FIS, Fiserv, Global Payments.

5.What is the study period of this market?
Ans: The Global Digital Payment Market is studied from 2021 to 2029.