San Francisco, 28 February 2024: The Report Digital Payment Market Size, Share & Trends Analysis Report By Solution, By Mode Of Payment (Bank Cards, Digital Currencies, Digital Wallets), By Deployment, By Enterprise Size, By End-use, By Region, And Segment Forecasts, 2024 - 2030

The global digital payment market size is anticipated to reach USD 361.30 billion by 2030, expanding at a CAGR of 21.1% during the forecast period, according to a new report published by Grand View Research, Inc. The market’s growth can be attributed to the increasing number of non-cash transactions, alongside technological advancements within the fintech sector. Numerous fintech firms and banks are striving to enhance their digital services in order to align with evolving customer demands. For instance, in January 2021, Mogo Inc., a financial technology and digital payment company, announced the shareholder's approval for the acquisition of a digital payment company, Carta. This acquisition is expected to help the former company strengthen its market presence.

Biometric authentication in digital payments is expected to gain momentum in the coming years. It is a method used for authentication which involves the verification of biological characteristics related to particular person. The authentications include factors such as facial recognition, fingerprint scanning, heartrate analysis, and vein mapping. According to Payments Industry Intelligence, biometric authentication solutions are expected to be used to secure USD 2.5 trillion worth of mobile payment transactions by 2024.

The increase in the adoption of innovative technologies, such as assisted checkouts (ACOs) in the retail industry, is expected to push digital payment industry towards growth. In recent days, various companies have been making efforts to deploy assisted checkout systems in retail stores. For instance, in June 2020, Walmart, a popular retail company has recently announced that they were testing their assisted checkout retail stores at multiple locations in Arkansas and Fayetteville. The traditional cashier checkout lanes in these stores were replaced by self-checkout systems.

The COVID-19 pandemic and its impact on public life has favorably propelled the market towards unprecedented growth. The pandemic has led this industry to an increased number of mobile-based payment solutions and online sales, These factors have been recognized as the major driving forces behind increasing demand for digital payment solutions across the globe. According to the study conducted by Accenture, transactions worth $7 trillion are expected to shift from cash to card and digital payments by 2023.

In presence of events which are acting as a catalyst for growth, i.e. collaborative deals between top players, the market is most likely to witness significant growth. For instance, in December 2023, a collaboration between PayPal Holdings Inc. and SAP was unveiled, marking the introduction of an enhanced integration aimed at streamlining digital payments for SAP customers. This partnership entails the development of a digital payments plug-in designed for the PayPal Braintree platform, leveraging the capabilities of the SAP Business Technology Platform (SAP BTP). These initiatives are expected to drive the market’s growth.

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According to the data published by The World Bank, at the end of 2021, over two-thirds of the adults worldwide were making or receiving digital payments, and the number is expected to increase more in the coming years. The growing adoption of digital payments can be attributed to factors such as ever increasing use of smartphones, growing accessibility of internet, rapid acceptance and adoption of cashless transactions during the pandemic, and governments across the world encouraging people to use digital payment methods.

Digital Payment Market Report Highlights

• In terms of solution, the payment processing segment is expected to retain its dominance over the forecast period. The introduction of payment networks such as Mastercard, Visa, and Rupay in multiple countries is anticipated to contribute to the growth
• In terms of mode of payment, the point of sales segment dominated in 2023 and is expected to witness significant growth over the forecast period. The growing preference for digital wallets while paying for e-commerce transactions and online purchases is expected to drive the segment growth
• In terms of deployment, the on-premise segment dominated with the largest revenue share in 2023. On-premise deployment of digital payment solutions facilitates secured transactions, which is expected to bode well for this segment’s growth
• In terms of enterprise size, the large enterprises segment held the largest revenue share in 2023. Many large enterprises have adopted digital payment solutions to manage their payment transactions efficiently, improve the visibility of transactions, and enhance customer experience by reducing the time required to complete the payment
• In terms of end-use, the BFSI segment dominated the market in 2023. The continued digitalization of banks and other financial institutions is anticipated to drive this segment’s growth
• Asia Pacific is anticipated to witness significant CAGR from 2024 to 2030. The increasing adoption of digital payment solutions in emerging economies such as China and India is expected to create growth opportunities in the region
• In presence of events which are acting as a catalyst for growth, i.e. collaborative deals between top market players, the market is most likely to reach the anticipated growth during the forecast period.

According to Kepios Pte. Ltd., at the start of Q4 2023, 5.30 billion people globally (equivalent to 65.7% of the world’s total population) were using the internet, and around 84% of the mobile phones in use were smartphones. This unprecedented surge in internet accessibility and availability of user-friendly smartphone devices has boosted the growth of the digital payment market. Increased ease in access to internet and technologies powered by it has encouraged more people to embrace digital transactions. This results in enhancing convenience and the market’s growth eventually. Also, presence of businesses on world of web, unparalleled response to it by consumers, and role of digital payments in these transactions has helped digital payments market to further itself towards newer horizons.

Governments across the globe are keen to promote digital payments. For instance, in December 2023, the governments of the Philippines and Ghana joined international organizations, including the United Nations (UN), World Food Program, and UN-housed Better Than Cash Alliance, to initiate a new 'call to action'. Launched at COP28 in the UAE, this global initiative encouraged governments, financial institutions, and the private sector to adopt digital payments for efficient emergency responses. Such initiatives are significantly contributing to market’s growth.

Digital Payment Market Report Scope

The pandemic spurred a surge in contactless payments as safety concerns drove people to embrace cashless transactions. In April 2020, Mastercard announced that it witnessed a 40% increase in virtual payments, including tap-to-pay and mobile pay. This shift accelerated the adoption of digital payments, favoring cashless methods like mobile wallets and cards. This trend supported the market, emphasizing convenience and hygiene, further driving its widespread acceptance.

Despite the growing adoption of digital payments across the globe, the market faces significant constraints in terms of fraudulent activities in digital modes of payment. According to Merchant Savvy, a UK-based consulting firm, frequency of global payment frauds is expected to increase incessantly and is most likely to cost $40.62 billion by 2027. The rise in payment fraud poses a significant challenge to the market’s growth, necessitating robust security measures and innovative strategies to mitigate risks and ensure consumer trust in digital payment systems.

List of Key Players in Digital Payment Market

• Aliant Payments
• Aurus Inc.
• Adyen
• Financial Software & Systems Pvt. Ltd.
• PayPal Holdings, Inc.
• Novatti Group Ltd.
• ACI Worldwide Inc.
• Global Payments Inc.
• Authorize.Net