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.
Digital Payments Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2022 |
| Digital Payments Market Size in 2022 |
USD 8.4 Trillion |
| Forecast Period |
2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR |
16.7% |
| 2032 Value Projection |
USD 37.1 Trillion |
| Historical Data for |
2018 to 2022 |
| No. of Pages |
300 |
| Tables, Charts & Figures |
246 |
| Segments covered |
Type, End-user industry |
| Growth Drivers |
- Increasing e-commerce and online transactions
- Changing consumer behavior across the globe
- Rising penetration of smartphones
- Supportive government initiatives and regulatory support
- Increasing globalization and cross border transactions
|
| Pitfalls & Challenges |
- Increasing case of data breaches and fraud
|
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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 pandemic has given the digital payment world a major boost. It all started when people got scared of catching the virus from touching things. This made them start using contactless ways to pay, like mobile wallets and online shopping. With stores being shut and people keeping their distance, more and more people turned to online shopping, which made digital payments even more popular. This crazy time also showed us how important it is to have payment systems that are strong and work well. So, companies and people started using digital payment options to make sure their transactions were safe and smooth. In short, the pandemic has made digital payments more important and has made people use them more.
Digital Payments Market Trends
Hey there! It seems like people are increasingly ditching cash and plastic for contactless payments, all thanks to the need for germ-free transactions. Phone wallets and those quick scan-and-pay codes are all the rage right now. With more and more of us shopping online, the demand for digital payment options has skyrocketed. And it's not just shopping; these options are popping up everywhere - from the grocery store to the bus ride to the doctor's office. Tech advancements like fingerprint and face scans, and those fancy blockchain thingies, are making these payments safer and even faster. And let's not forget about our beloved smartphones. With the number of payment apps exploding, it's no wonder mobile Payments are on the rise.
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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In 2022, Asia Pacific dominated the digital payments market, accounting for over half of all revenue. This surge was fueled by the region's rapid expansion in internet and smartphone use, creating a vast pool of potential users for digital payments. As more people in Asia Pacific gained access to the internet and smartphones, they grew more comfortable using digital payment options for their convenience and accessibility. The region also boasts some of the world's largest and fastest-growing e-commerce markets, including China, India, and Southeast Asian countries. The rise of online shopping and the shift toward digital commerce has created a soaring demand for secure and convenient digital payment solutions.
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
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Singapore
- Thailand
- Indonesia
- Philippines
- Latin America
- 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).
