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The digital payment market size is estimated to grow by USD 160.94 billion at a CAGR of 21.23% between 2022 and 2027. The growth of the market depends on several factors such as the rising number of online transactions, the rising deployment in emerging economies, and the advantages of digital payments.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The advantages of digital payments is the key factor driving the growth of the market. Digital payments have revolutionized the way people and enterprises do business with each other. Payment methods present a range of benefits that will transform the way people and businesses conduct financial transactions. Convenience is one of the advantages of the digital payments market.
Additionally, many payment methods use advanced encryption and authentication technology, making them more secure than carrying cash or traditional paper-based payment methods. Digital transactions also leave a trail, helping to prevent fraud, resolve disputes, enhance accountability, and reduce the risk of financial fraud. Thus, such factors are expected to accelerate the market growth and trends during the forecast period.
The growing emergence of mobile apps for shopping transactions is the primary market trends. In the modern scenario, as smart devices continue to drive the market, more online shopping transactions are on mobile apps than on websites. To take advantage of these opportunities, the market players are switching from a website to a pure app service. Mobile payments are growing rapidly in countries such as India, with more customers and enterprises adopting digital payments during the pandemic.
Besides, many developing countries such as Indonesia and Thailand still face internet connectivity issues and customers cannot shop online, so the move to app-only services is a major global challenge for e-commerce providers. It may fail. However, new applications are emerging. For example, in January 2020, Alibaba launched Yoli, an e-commerce app in India. Therefore, such factors drive the growth of the market during the forecast period.
Privacy and concerns related to security is a challenge that affects the growth of the market. While digital payment methods have many advantages, there are also privacy and safety concerns that affect individuals and enterprises. Data breaches and hacking attacks are common in these gateways because payment systems contain sensitive financial and personal information.
Moreover, the solitariness of confidential information is being abused. They also give a peak to third-party access, as many sellers share customer information with third-party market players for marketing reasons. Additionally, criminals and hackers tend to send phishing emails, messages and fake websites. Fraud information is shared with customers. These factors are expected to impede the growth of digital payments during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The large enterprises segment is estimated to witness significant growth during the forecast period. Generating a large number of transactions is driving the acceptance of digital payments by large corporations. Key contributors to this segment are companies in the banking, securities, finance, and insurance (BSFI), information technology, and manufacturing sectors. In addition, there have been several expansions of BFSI companies.
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The large enterprises segment was the largest segment and was valued at USD 20.11 billion in 2017. Hotels, cafes, grocery stores, shopping malls, and event managing companies use digital payment gateways for fast and easy transactions. This is a key factor driving the growth of the market. Most of the market revenue is generated by large companies, who focus on technologically advanced services such as gateways and mobile wallets. Therefore, increasing demand and adoption of payment practices are expected to drive the growth of the market during the forecast period.
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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC market is expected to witness high growth due to rapid urbanization and the growing penetration of Internet assistance. The increasing acceptance of various methods such as wallets and payment gateways is driving the growth of the regional market.
Furthermore, various governments in the region are making efforts to facilitate digital payments. There are many different types and methods of digital payments. Various methods such as Unified Payments Interface (UPI) and mobile wallets have grown significantly in the region. Hence, such factors will drive the market growth during the forecast period.
The digital payments market is experiencing a transformative shift, propelled by innovations like Contactless payments and NFC technology, enabling seamless transactions via mobiles, rings, and wristbands. Despite rapid growth, challenges persist, including a lack of global standards for cross-border payments, hindering international finance and trade.
Digital payment providers strive to deliver user-friendly experiences within a framework of evolving government regulations and payment standards. Initiatives to address compliance difficulties and promote financial inclusion are underway, driving economic growth and reducing cash reliance. Enhanced security measures combat risks while fostering trust among unbanked individuals. Regional adaptations cater to local needs, fostering collaboration between private sector players, banks, and regulators to streamline processes and reduce transaction costs, ultimately promoting financial inclusion and economic prosperity.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Digital Payment Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.23% |
Market growth 2023-2027 |
USD 160.94 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.75 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, India, South Korea, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACI Worldwide Inc., Adyen NV, Apple Inc., Aurus Inc., Due Inc., Fidelity National Information Services Inc., Fiserv Inc., Global Payments Inc., Intuit Inc., JPMorgan Chase and Co., Mastercard Inc., PayPal Holdings Inc., Paysafe Ltd., PayTrace Inc., Stripe Inc., VeriFone Inc., Visa Inc., WEX Inc., Worldline SA, Fattmerchant Inc., and Square Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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