Digital Payment Market Research Report - Global Forecast Till 2032

Digital Payment Market Research Report Information By Component (Solution and Services), Deployment Model (SaaS, PaaS, and On-Premise), Organization Size (Small & Medium Enterprise and Large Enterprise), Vertical (BFSI, IT & Telecommunication, Retail & E-commerce, Hospitality, Healthcare, Media & Entertainment, and Others), And By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Market Forecast Till 2032

ID: MRFR/ICT/6103-CR | 188 Pages | Author: Aarti Dhapte | March 2024         

Digital Payment Market Speak to Analyst Request a Free Sample

Digital Payment Market Overview


Digital Payment Market Size was valued at USD 84.47 Billion in 2022. The Digital Payment market industry is projected to grow from USD 97.15 Billion in 2023 to USD 343.91 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.1% during the forecast period (2023 - 2032). The Digital Payment Market is expected to grow significantly over the forecast period due to several factors. The growth of the Digital Payment Market is expected to be driven by key factors such as increasing digital payment transactions in e-commerce and m-commerce and the need for user-friendly methods for digital payments and reservations. However, factors such as security concerns regarding digital payment and increasing rate of cyber-attacks in banking solutions are expected to restrict market growth. On the other hand, the rising real-time payment modes over the pandemic and the growing use of smartphones for digital payments pose lucrative opportunities for the Global market.


Figure1: Digital Payment Market, 2018 - 2032 (USD Billion)


Digital Payment Market Overview


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Digital Payment Market Opportunity




  • Rising real time payment modes over the pandemic




The use of digital payment options has expanded because to the rise of internet payments and real-time payment modes during the epidemic. Furthermore, many organisations and industries are fast transitioning to cashless transactions, such as MPOS transactions. The rules and regulations, as well as the global government partnership, are likely to provide profitable growth opportunities for the digital payment business.


The shift to UPI payments in India is also creating various opportunities for the global digital payment business to flourish. According to the National Payments Corporation of India (NPCI), UPI payments achieved a monthly record of 2.3 Lakh billion transactions in January 2021, worth INR 4.3 Lakh crore.


One of the most prominent applications for COVID-19 is to assist gig economy workers, who would be paid for their services immediately rather than having to wait for 14-day payment periods. Real-time payments have huge potential to aid underbanked societies in areas without bank branches. Realtime payments offer a number of benefits to corporate clients, including faster processing, rapid settlement, and the ability to transmit and receive data-rich payments messages, which can aid in automating time-consuming portions of payments processing. Real-time payments can help banks find efficiencies through least-cost routing and aid in fraud prevention by enabling multifactor authentication and targeted scanning. Real-time payments can enable access to a multitude of value-added services, increasing transaction volume and, as a result, bank revenue. Real-time payments have the potential to change payments from a commodity service to a critical, strategic service with consequences across the value chain of industries. To capitalise on this shift, financial institutions (FIs) have begun to consider payments as part of a larger business and value-based context within which each payment transaction occurs rather than merely as the settlement of an exchange.


Digital Payment Market Component Segment Insights


Digital Payment Component Insights


Based on component, the Digital Payment Market segmentation includes Solution, and Services. The solution segment held the majority share in 2022, contributing around ~71.1% to the market revenue. Solution consists of point of sale, payment gateway, payment processing, payment wallet, payment security, and payment fraud management. The point of sale in digital payment is the physical location where a customer makes a purchase for products or services, such as a retail store, restaurant, or other company. As the use of digital payment methods has grown, so has the popularity of digital POS systems. It supports a wide range of payment methods, including credit and debit cards, as well as contactless payments. Payment gateways are the "checkout" portals used in online retailers to submit credit card information or credentials for services such as PayPal. Payment gateways are separate from payment processors, which collect payments on behalf of merchants using client information. The platform, tools, and services that enable businesses to securely process and manage electronic payments are referred to as payment processing solutions in digital payments. These solutions often contain features such as fraud detection and prevention, transaction processing, reporting and analytics, and other payment-related services that may be linked into apps via APIs. Payment wallet solutions are platforms or mobile applications that allow users to save their payment credentials, such as credit card or bank account information, and use them to make transactions via digital payments. Payment wallets function as a digital equivalent of a physical wallet, allowing users to securely and conveniently keep their payment information. Payment wallet solutions include secure storage, contactless payments, loyalty benefits, and so on.


Figure 2: Digital Payment Market, by Component, 2022 & 2032 (USD Billion)


Digital Payment Market, by Component, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Digital Payment Market Vehicle Deployment Model Segment Insights


Digital Payment Vehicle Deployment Model Insights


Based on Deployment Model, the Digital Payment Market segmentation includes SaaS, PaaS, and On-Premise. The On-Premise segment held the majority share in 2022 contributing around ~65.2% to the market revenue. The implementation of an on-premise solution takes longer than that of a SaaS solution. Most clients choose the on-premise option because they want a more customized solution with additional connectors, functions, and customizations. When the on-premises solution is installed on servers, there is need to calculate how much time it will take to finish the integration process and begin operations. The software license solution is typically more customer-oriented and can be easily adjusted to meet specific customer needs both now and in the future. However, before making a purchase, it is critical to consult with the software vendor. Because it's not always about the model, but about the supplier and solution adaptability. It is determined by the degree of openness of the solution or service.


For SaaS, all data is stored on a cloud server managed by the service provider. SaaS is the most cost-effective approach to start a business and develop alongside the platform for firms that aren't ready to spend in software, infrastructure, and IT employees from the outset. SaaS deployment is analogous to the establishment phase of a utility service, which is followed by metering and invoicing at regular intervals for the services given.


Platform as a service (PaaS) is a complete cloud development and deployment environment with resources to produce everything from simple cloud-based apps to sophisticated, cloud-enabled business systems. PaaS, like IaaS, contains infrastructure servers, storage, and networking, as well as middleware, development tools, business intelligence (BI) services, database management systems, and other services.


Digital Payment Market Organization Size Segment Insights


Digital Payment Organization Size Insights


Based on the Organization Size, the Digital Payment Market segmentation includes Small & Medium Enterprise and Large Enterprise. By Organization Size, Large Enterprise segment hold the majority market share in 2022 contributing 57.2% of the market share. Maintaining a high cash flow in the business is one of the top priorities in large enterprises. Digital payment enables enterprises to give their clients an option to pay from a variety of digital payment gateways. Instant payment, quick & easy setup, credibility for merchants, merchant reliability, and recurring payments are some of the advantages of using digital payment in large enterprises.


With the increasing number of e-commerce startups, the use of digital payment has raised rapidly as it helps businesses to build trust among customers by enabling easy transactions. There are number of digital payment gateway service providers such as Stripe, Braintree, PayPal, Adyen, and others. Faster transaction, convenience, and low risk of theft are some of the benefits of digital payment for micro and small enterprises. Micro and small enterprises segment is expected to grow at the fastest rate owing to the expansion of micro and small enterprises along with an increasing number of customers preferring online shopping in the emerging economies.


Digital Payment Market Vertical Segment Insights


Digital Payment Vertical Insights


Based on the Vertical, the Digital Payment Market segmentation includes BFSI, IT & Telecommunication, Retail & E-commerce, Hospitality, Healthcare, Media & Entertainment, and Others. By Vertical, BFSI segment hold the majority market share in 2022 contributing 29.4% of the market share. Many banks around the world are also attempting to form alliances with digital payment service providers in order to give real-time payment options to consumers and merchants. Yes Bank, for example, announced a relationship with Amazon Pay and Amazon Web Services (AWS) in November 2021 to provide a real-time payment system via the Unified Payment Interface (UPI) transaction capability. UPI supports inter-bank person-to-merchant and peer-to-peer network transactions via the Yes Bank digital payment platform because of this agreement.


Digital payment has transformed the banking industry by enabling customers to make transactions quickly, easily, and securely. Banks have developed online banking platforms that allow customers to manage their accounts, pay bills, and transfer funds from the comfort of their homes. Banks have also developed mobile payment apps that enable customers to make payments using their smartphones. Banks issue debit and credit card that can be used to make payments at point-of-sale terminals or online. Customers can access banking service anytime from anywhere with the help of digital payment.


Digital Payment Regional Insights


By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, North America held the largest share of 37.7% in the Digital Payment market in 2022 and is expected to maintain its dominance during the forecast period. The North America is the largest market for digital payment. Because it has more financial institutions than any other, the region has attracted international investors. Local players dominate the North American market, resulting in severe entry hurdles. With the region experiencing rapid expansion, foreign investors are becoming increasingly interested in entering the American market. Master Card expanded its ability deep into the area of digital assets or profits in September 2021 with a contract to adopt CipherTrace, a major crypto currency corporation with stakes in over 900 cryptocurrencies. The alliance gives CipherTrace's suite of digital benefits and Master Card's cyber security to supply trade and commerce with massive transparency to aid in identifying and understanding risks and assisting in managing their digital assets official and contractual needs. Aliant Payments announced in October 2020 that the CryptoBucks cryptocurrency payment mobile app powered by Aliant Payments has integrated XRP, an open-source independent digital asset, to its platform. XPR would be available for both Android and iOS mobile apps. With the addition of XRP, merchants would be able to take Bitcoin Cash, Bitcoin, Ethereum, and Litecoin payments online and in-store. Furthermore, the company's primary objective is to give Amazon users the ability to buy without creating a new account or entering credit card information. Furthermore, digital payment systems have been widely used by medium and large-sized organization. Because of the high number of suppliers providing services to many banks, the United States is the largest market in the digital paymemt business.


Figure 3: DIGITAL PAYMENT MARKET SIZE BY REGION 2022 & 2032


DIGITAL PAYMENT MARKET SIZE BY REGION 2022&2032


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


The Western Europeans have been evident providers of digital payment owing to their digital transformation. Also, Western Europe has seen strong digital payment over the years due to open banking, public cloud, and AI, having transformed the industry to the core. Europe is predicted to increase significantly during the projection period. Banks in Europe are working to develop a European payment initiative that will create a single payments solution for retailers and consumers throughout the area. Over the projected period, such initiatives are expected to generate new development prospects for the market. Furthermore, the Italian government's digital drive to expand electronic payments in the country is propelling regional market growth. The presence of several players offering Digital Payment has increased market competitiveness. For example, in September 2020, Worldline purchased a majority (53% interest) in GoPay, a significant online collecting payment service provider. This acquisition provided Worldline with new potential in European markets.


Asia-Pacific is the fastest-growing regional market in global digital payment. The penetration of the digital payment system is considerably higher in the region, which further results in quicker and more rapid deployment of new architectures to encourage digital banking. China and India are the largest market for digital payment owing to continuous initiatives for simplified banking services. Amazon.com Inc. has invested USD 121.9 million in Amazon Pay, the digital transactions and economic services section of Amazon India, in November 2021, amid an escalating conflict with Walmart adopted Flipkart in India's main online retail industry.


As a result of the National Innovation Strategy, the UAE has become one of the fastest-growing economic and technical hubs. Other initiatives, such as the AI Strategy 2031 and the Emirates Blockchain Strategy 2021, have increased investments in technology developments, particularly in the banking and finance industry. The introduction of more than 40 financial free zones across the seven Emirates, in particular, has fostered digital banking innovation in the UAE. Middle Eastern governments are supporting digital payment solutions to minimize reliance on cash and improve financial inclusion. The UAE government, for example, developed the Emirates digital wallet, which lets users to pay for government services, bills and retail items.


South American banks are increasingly transitioning from in-house to Digital Now financial services. Because of the existence of regional and international providers, even small banks in South America are widely implementing modern digital payment systems. South America's digital payment sector has lagged behind that of Europe and North America due to slower acceptance of current banking norms. Aside from that, religious incompatibility may stifle innovation by discouraging investors from entering the South American market.


Digital Payment Key Market Players & Competitive Insights


With a strong presence across different verticals and geographies, the Digital Payment market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Digital Payment market is highly competitive, with many vendors offering similar products and services.


The major players in the market include PayPal Holdings Inc., Stripe, Square, First Data Corporation (Fiserv, Inc.), Worldpay, LLC (FIS), Global Payments Inc., ACI Worldwide, JP Morgan Chase & Co., Visa Inc., Elavon Inc., Zelis Healthcare, Aliant Payments, Aurus Inc., Mastercard Incorporated, PayTrace, FLEETCOR Technologies, Inc., Melio, Mesh Payments, Onbe, Orum.io, Papaya Payments, and Others. PayPal’s strategy encompasses aiding the business growth through expanding its global capabilities, increasing customer base & scaling, and increasing customers’ use of the company’s products and services by addressing their needs better, managing and moving money as well as expanding the adoption of solutions by new merchants and consumers. It also focuses on expanding value proposition, extending strategic partnerships, seeking new areas through international markets worldwide, and focusing on innovation both in the digital and the physical world. PayPal also focuses on enhancing its technology infrastructure and investing in new technologies such as blockchain, artificial intelligence, and machine learning. These technologies enable PayPal to improve its fraud prevention, risk management, and compliance capabilities, which are critical for building trust with customers and ensuring the safety of their transactions.


The Digital Payment Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.


Key Companies in the Digital Payment market include



  • PayPal Holdings Inc.

  • Mastercard Incorporated

  • Visa Inc.

  • First Data Corporation (Fiserv, Inc.)

  • JP Morgan Chase & Co.

  • Stripe, Square

  • Global Payments Inc.,

  • ACI Worldwide

  • Elavon Inc

  • Zelis Healthcare

  • Aliant Payments

  • Aurus Inc

  • PayTrace

  • FLEETCOR Technologies, Inc.

  • Melio

  • Mesh Payments

  • Onbe

  • io

  • Papaya Payments


Digital Payment Industry Developments



  • In March 2023, Boomerang, a global SaaS (software as a service) provider in end-to-end healthcare practice management for non-insured, private-pay segments such as dermatology, cosmetic surgery, medical spa, cosmetic dentistry, and women's health, has announced that it has chosen Stripe, Inc. to provide integrated payments within its platform. The collaboration brings together two industry experts to provide BoomerangFX clients with faster payment processing, improved security, and more flexible payment alternatives. The new service offering will first be available to Boomerang clients in Canada and the United States, with plans to expand globally later this year.

  • In March 2023, ACI Worldwide partnered with financial technology firm RedAbierta to facilitate real-time payments. RedAbierta, started using ACI Enterprise Payments Platform and ACI Low-Value Real-Time Payments to develop the American country's local immediate payment central facilities and assist financial institutions in connecting to the new scheme.


Digital Payment Market Segmentation


Digital Payment Component Outlook



  • Solution

    • Point of Sale

    • Payment Gateway

    • Payment Processing

    • Payment Wallet

    • Payment Security and Fraud Management Solutions



  • Services 


Digital Payment Deployment Model Outlook



  • SaaS

  • PaaS

  • On-Premise


Digital Payment Sales Channel Outlook



  • Small & Medium Enterprise

  • Large Enterprise


Digital Payment Vertical Outlook



  • BFSI

    • Banking

    • Financial Services

    • Insurance



  • IT & Telecommunication

  • Retail & E-commerce

  • Hospitality

  • Healthcare

  • Media & Entertainment

  • Others


Digital Payment Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Rest of Asia Pacific



  • Middle East & Africa

    • GCC Countries

    • South Africa

    • Rest of Middle East & Africa



  • South America

    • Chile

    • Brazil

    • Rest of South America






  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature



  •  

  •  

  •  

  •  

  •  

  • Beta


Beta feature

Report Scope:

Report Attribute/Metric Details
Market Size2022 USD 84.47 Billion
Market Size 2023 USD 97.15 Billion
Market Size 2032 USD 343.91 Billion
Compound Annual Growth Rate (CAGR) 15.1 % (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Component, Deployment Mode, Organization Size, Vertical, and Region
Geographies Covered Europe, North America, Asia-Pacific, Middle East & Africa, and South America
Countries Covered The U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, Brazil, and others.
Key Companies Profiled PayPal Holdings Inc., Stripe, Square, First Data Corporation (Fiserv, Inc.), Worldpay, LLC (FIS), Global Payments Inc., ACI Worldwide, JP Morgan Chase & Co., Visa Inc., Elavon Inc., Zelis Healthcare, Aliant Payments, Aurus Inc., Mastercard Incorporated, PayTrace, FLEETCOR Technologies, Inc., Melio, Mesh Payments, Onbe, Orum.io, Papaya Payments, and Others.
Key Market Opportunities ·       Rising real time payment modes over the pandemic ·       Growing use of smartphones for digital payments
Key Market Dynamics ·       Increasing digital payment transactions in e-commerce and m-commerce ·       Need for user-friendly methods for digital payments and reservations




Frequently Asked Questions (FAQ) :

The Digital Payment Market size is expected to be valued at USD 84.47 Billion in 2022.

The global market is projected to grow at a CAGR of 15.1% during the forecast period, 2023-2032.

North America had the largest share of the global market.

The key players in the market are PayPal Holdings Inc., Stripe, Square, First Data Corporation (Fiserv, Inc.), Worldpay, LLC (FIS), Global Payments Inc., ACI Worldwide, JP Morgan Chase & Co., Visa Inc., Elavon Inc., Zelis Healthcare, Aliant Payments, Aurus Inc., Mastercard Incorporated, PayTrace, FLEETCOR Technologies, Inc., Melio, Mesh Payments, Onbe, Orum.io, Papaya Payments, and Others.

The Solution category dominated the market in 2022.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
Request Free Sample

Why Choose Market Research Future?

  • Vigorous research methodologies for specific market.
  • Knowledge partners across the globe
  • Large network of partner consultants.
  • Ever-increasing/ Escalating data base with quarterly monitoring of various markets
  • Trusted by fortune 500 companies/startups/universities/organizations
  • Large database of 5000+ markets reports.
  • Effective and prompt pre- and post-sales support.
Speak to Analyst
Leading companies partner with us for data-driven Insights.
Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo Client logo

Kindly complete the form below to receive a free sample of this Report

Please fill in Business Email for Quick Response
Invalid