Digital Payments Market Size - By Type (Digital Commerce, Digital Remittances, Mobile POS Payments s), By End-User Industry (Retail, BFSI, IT & telecommunication, Healthcare, Travel & Hospitality, E-commerce, Government) & Global Forecast, 2023 – 2032

Digital Payments Market Size - By Type (Digital Commerce, Digital Remittances, Mobile POS Payments s), By End-User Industry (Retail, BFSI, IT & telecommunication, Healthcare, Travel & Hospitality, E-commerce, Government) & Global Forecast, 2023 – 2032

Digital Payments Market Size

Digital Payments Market size in terms of transaction value was valued at USD 8.4 trillion in 2022 and is anticipated to register a CAGR of 16.5% between 2023 and 2032. The market growth is driven by several factors, such as the increasing adoption of smartphones and mobile devices, which provide a larger user base for digital payments platforms. Convenience and accessibility, along with the ability to make Payments s anytime, anywhere, have also contributed to market growth.

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Rising e-commerce, contactless payments & government initiatives; enhanced security measures; and the emergence of fintech companies with innovative payments  processing solutions are further driving the digital payments market. Additionally, the demand for financial inclusion, the shift in consumer behavior toward digital transactions, and the growth of emerging markets play a significant role in fueling market demand.

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Digital payments refer to the transfer of money or financial transactions conducted electronically without the need for physical cash or traditional payments methods such as checks or paper invoices. It involves the use of digital technologies and online platforms to authorize, authenticate, and process transactions. Digital Payments s encompass various methods & channels including credit and debit cards, mobile wallets, online banking, Peer-to-Peer (P2P) transfers, payments  gateways, and other electronic payments  systems. These technologies facilitate the secure & convenient transfer of funds between individuals, businesses, and organizations.

The risk of data breaches, fraud, and identity theft poses challenges to the adoption of digital payments. Consumers and businesses are wary of potential security vulnerabilities. In certain regions, inadequate internet connectivity and a lack of digital infrastructure can hinder the widespread adoption of digital payments. Evolving regulations and compliance requirements can create complexity & uncertainty for digital payments providers, impacting their ability to operate and innovate. Some consumers may also face barriers in adopting digital payments due to limited access to smartphones or a lack of technological literacy.

COVID-19 Impact

The COVID-19 pandemic has significantly impacted the digital payments market. The fear of virus transmission through physical contact has accelerated the shift toward contactless Payment methods such as mobile wallets and online transactions. The closure of physical stores and social distancing measures have driven the demand for e-commerce, leading to increased digital payments volumes. Moreover, the pandemic has highlighted the need for resilient & efficient payment systems, prompting businesses and consumers to adopt digital payment solutions for seamless and secure transactions. Overall, COVID-19 has acted as a catalyst, pushing the market to the forefront and accelerating the adoption of digital payment technologies & platforms.

Digital Payments Market Trends

There is a growing preference for contactless Payments s, which is driven by the need for hygienic transactions. Mobile wallets and QR code-based payments are currently gaining popularity. The rise of e-commerce and the shift toward online shopping have fueled the demand for digital payment solutions. The integration of digital payment options across various industries including retail, transportation, and healthcare is becoming more prevalent. Advancements in technology, such as the adoption of biometrics and blockchain, are enhancing security and enabling faster & more secure transactions. The increasing use of smartphones and the proliferation of payments apps will drive the growth of mobile Payments over the forecast period.

Digital Payments Market Analysis

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The digital commerce segment held over 60% of the digital payment market share in 2022. Consumers are rapidly shifting toward online shopping owing to the provision of a seamless & convenient shopping experience on digital commerce platforms. To facilitate these transactions, digital payment solutions are integrated into e-commerce platforms, allowing customers to make secure online payments. This integration also enables quick and hassle-free checkout processes, reducing friction and improving customer satisfaction. Digital commerce platforms also offer various payment options including credit/debit cards, mobile wallets, and digital currencies, expanding the choices available to consumers.

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The retail segment accounted for 27% of the digital payments market share in 2022. The increasing popularity of digital payments in the retail market is mainly influenced by the need for convenient and improved customer experiences. Digital payment methods offer a smooth and efficient way for shoppers to make purchases, reducing the reliance on physical cash or card transactions. The widespread use of smartphones and mobile applications has made it effortless for consumers to utilize digital wallets or mobile banking apps, enabling hassle-free online and in-store shopping experiences.

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Asia Pacific digital payments market was over 48% of revenue share in 2022. The region experienced a rapid expansion in internet connectivity and smartphone adoption, providing a large user base for digital payments. As more people gain access to smartphones and the internet, there is a greater inclination toward using digital payment solutions for convenience and accessibility. The Asia Pacific region is home to some of the world's largest and fastest-growing e-commerce markets such as China, India, and Southeast Asian countries. The rising online shopping platforms and the shift toward digital commerce have fueled the demand for secure & convenient digital payment options.

Digital Payments Market Share

Major companies operating in the digital payment market are

• PayPal Holdings, Inc.
• Visa Inc
• Mastercard Incorporated
• American Express Company
• Square Inc.
• Apple Inc. (Apple Pay)
• Google LLC (Google Pay)

These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research to introduce innovative products and garner the maximum market revenue.

Digital Payments Industry News

• In July 2023, Mastercard partnered with JazzCash, Pakistan's largest digital wallet provider with over 43 million accounts, to revolutionize digital payments in the country by introducing affordable acceptance solutions. The partners will launch QR code payments, Pay by Link, and Tap on Phone solutions to help merchants at the bottom of the economic pyramid gain cost-effective & widespread acceptance. These solutions will allow fast-growing segments, such as freelancers and gig workers, to accept digital payments as well as underserved segments such as Micro, Small, and Medium-sized Enterprises (MSMEs).

This digital payments market research report includes in-depth coverage of the industry with estimates & forecast in terms of transactional value (USD Billion) and transactional volume (Million) from 2018 to 2032, for the following segments

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Market, By Type

• Digital Commerce
• Digital Remittances
• Mobile POS Payments s

Market, By End User Industry

• Retail
• BFSI
• IT & Telecommunication
• Healthcare
• Travel & Hospitality
• E-commerce
• Government
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Netherlands
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Thailand
  • Indonesia
  • Philippines 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the digital payments market?

The market size of digital payments in terms of transaction value was reached USD 8.4 trillion in 2022 and is anticipated to record over 16.5% CAGR from 2023 to 2032, due to the increasing adoption of smartphones and mobile devices.

How is the digital payments industry influenced by the retail industry?

The retail end use segment held over 27% of the market share in 2022 and is estimated witness rapid growth by 2032, impelled by the surging need for convenient and improved customer experiences.

How much is the digital payments market worth in APAC?

Asia Pacific recorded over 48% of the market share in 2022, owing to the rapid expansion in internet connectivity and increased smartphone adoption in the region.

Who are the key digital payments industry players?

Some of the major digital payment providers are PayPal Holdings, Inc., Visa Inc., Mastercard Incorporated, American Express Company, Square, Inc., Apple Inc. (Apple Pay), and Google LLC (Google Pay).