Digital Payment Market Outlook 2031
The global digital payment market size was valued USD 78.52 billion in 2022 and is expected to reach USD 353.62 billion by 2031 expand at a substantial CAGR of 18.2% during the forecast period, 2023–2031. The growth of the market is attributed to the increase in e-commerce sales, huge adoption rate of smartphones, and enhanced internet penetration globally.
Digital payment, also called electronic payment, offer financial services where the payment is made through digital modes with the payee and payer both use digital modes to receive and send money. No physical cash is required in digital payments. According to industry standards, digital payment is defined only as non-cash transactions done through digital channels.
Various governments across the world are focusing to digitize payments. Digital payment is expected to promote economic growth and is also benefitting consumers in many countries across the world.
- For instance, the central bank of Mexico declared the launch of its smartphone payment system ‘CoDi,’ to decrease cash transactions in the country, in February 2019. Whereas, Judopay, a mobile-centric payment solution provider, also declared its partnership with the U.K. government to increase the adoption of digital payments in the public sector in November 2020.
The COVID-19 pandemic has positively influenced the market growth due to the increasing use of online payment solutions and a sheer rise in online sales. Customers all over the globe have shown a shifted from offline shopping to online shopping during the pandemic situation.
According to the report published by Alvarez & Marsal, a management consulting company, over 16.1 million European consumers are expected to shift from offline to online shopping to decrease the risk of COVID-19. Owing to this change in purchasing patterns, online sales in the U.K. have increased by USD 4.50 billion in 2020.
Digital Payment Market Trends, Drivers, Restraints, and Opportunities
- Various government organizations all over the world are making efforts to increase the adoption of digital payments such as offering subsidy which is expected to boost the market growth.
- Facial recognition technology is further gaining popularity globally and several companies are taking initiatives to provide facial recognition-based payment methods to retail stores, which is further expected to fuel the market.
- Increasing e-commerce sales globally is one of the major factors driving the market growth in the coming years.
- Customers changing purchasing patterns all over the world have shifted from offline shopping to online shopping during the pandemic, which is estimated to accelerate the growth of the market.
- Rapid rise in smartphone penetration across emerging economies is one of the key factors fueling the market growth.
Scope of The Digital Payment Market Report
The report on the global digital payment market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Digital Payment Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Solutions (Application Program Interface, Payment Gateway, Payment Processing, Payment Security & Fraud Management, Transaction Risk Management, and Others), Modes of Payment (Digital Currencies, Bank Cards, Digital Wallets, Point Of Sales, Net Banking, and Others), Deployment (Cloud and On-premise), Enterprise sizes (Large Enterprises and Small & Medium Enterprises), and End-users (BFSI, Healthcare, IT & Telecom, Media & Entertainment, Retail & E-commerce, Transportation, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Aurus Inc.; Aliant Payments; Financial Software & Systems Pvt. Ltd.; Adyen; Novatti Group Pty Ltd.; PayPal Holdings Inc.; Global Payments Inc.; ACI Worldwide, Inc.; Wirecard, and Authorize.Net
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Digital Payment Market Segment Insights
Payment processing segment is expected to grow at a rapid pace
Based on solutions, the global digital payment market is segmented into application program interface, payment gateway, payment processing, payment security & fraud management, transaction risk management, and others. The payment processing segment is expected to grow at a rapid pace in the market during the forecast period owing to growing preference for online shopping worldwide is pushing retailers to adopt payment processing solutions.
However, the application program interface segment is anticipated to account for a major market share during the projected period as application program interface allows integration with various industry-specific payment platforms.
Point of sales segment is projected to expand at a considerable CAGR
On the basis of modes of payment, the market is divided into digital currencies, bank cards, digital wallets, point of sales, net banking, and others. The point of sales segment is projected to expand at a considerable CAGR during the forecast period as it provide benefits such as customized customer experience, multiple payment options, and fast checkout options.
On the other hand, the net banking segment is anticipated to account for a key market share in the coming years due to increasing internet penetration.
On-premise segment is estimated to expand at a robust growth rate
In terms of deployment, the global digital payment market is bifurcated into cloud and on-premise. The on-premise segment is estimated to expand at a robust growth rate during the projected period as it provides organizations with complete control over applications and systems. Meanwhile, the cloud segment is anticipated to exhibit a high growth rate during the forecast period due to the rising number of unmanned retail stores.
Large enterprises segment is anticipated to register a high CAGR
In terms of enterprise size, the market is bifurcated into large enterprises and small & medium enterprise. The large enterprises segment is anticipated to register a high CAGR during the forecast period due to witnessing a large number of footfalls, which creates the demand for digital payment solutions for seamless checkouts.
Moreover, the small & medium enterprise segment is projected to account for a key share of the market in the coming years as these enterprises are shifting from paper-based invoicing to digital invoicing,
BFSI segment is anticipated to grow at a considerable rate
In terms of end-users, the global digital payment market is categorized into BFSI, healthcare, it & telecom, media & entertainment, retail & e-commerce, transportation, and others. The BFSI segment is anticipated to grow at a considerable rate during the targeted period owing to increase in remittances to low- and middle-income countries generating new opportunities.
Furthermore, the retail & e-commerce segment is expected to represent a large market share during the targeted period due to the rising number of unmanned retail stores worldwide.
North America is anticipated to constitute a key market share
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the forecast period owing to increasing deployment of smart parking meters and technology enhancements along with growing number of unmanned stores in the U.S.
The market of Asia Pacific, however, is anticipated to expand at a rapid pace during the forecast period due to the efforts undertaken by governments of the region such as digital campaign to increase electronic medium for payment.
Segments
The global digital payment market has been segmented on the basis of
Solutions
- Application Program Interface
- Payment Gateway
- Payment Processing
- Payment Security & Fraud Management
- Transaction Risk Management
- Others
Modes of Payment
- Digital Currencies
- Bank Cards
- Digital Wallets
- Point of Sales
- Net Banking
- Others
Deployment
Enterprise sizes
- Large Enterprises
- Small & Medium Enterprises
End-Users
- BFSI
- Healthcare
- IT & Telecom
- Media & Entertainment
- Retail & E-commerce
- Transportation
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Aurus Inc.
- Aliant Payments
- Financial Software & Systems Pvt. Ltd.
- Adyen
- Novatti Group Pty Ltd.
- PayPal Holdings Inc.
- Global Payments Inc.
- ACI Worldwide, Inc.
- Wirecard
- Authorize.Net
Competitive Landscape
Key players competing in the global digital payment market are Aurus Inc.; Aliant Payments; Financial Software & Systems Pvt. Ltd.; Adyen; Novatti Group Pty Ltd.; PayPal Holdings Inc.; Global Payments Inc.; ACI Worldwide, Inc.; Wirecard, and Authorize.Net. The main market players are continuously engaged in various business development activities such as mergers and acquisitions, research and developments, investments for innovative products and collaborations.
For instance, Aliant Payments declared that the Cryptobucks cryptocurrency payment app, which is powered by Aliant Payments, added XRP to its platform. XPR was made available for both Android and iOS mobile apps in October 2020.
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