ID: MRFR/ICT/6103-CR | 111 Pages | Published By Aarti Dhapte on August 2019
Digital Payment Market size to reach USD 287.56 Billion with a 14.83% CAGR from 2020 to 2030
Digital Payment is a process that allows the users to send and receive money using the electronic mode. The best thing about this kind of transaction is the fact that it eradicates the usage of cash completely as everything happens using wallets, digital currency modes, Net banking, and so on. With the popularity, of digital Payment platforms, in the year 2020 itself, Market Research Future (MRFR) predicts the Digital Payment Market size to reach USD 287.56 Billion with a 14.83% CAGR from 2020 to 2030 (forecast period). The digital payment market is expected to expand as a result of global initiatives to encourage digital payments, the high proliferation of smartphones enabling mCommerce growth, an increase in eCommerce sales, and an increase in Internet penetration.
Digital Payment Market Covid 19 impact:
The Covid 19 outbreak has significantly impacted various sectors across different industries. Be it the manufacturing industry, Travel, and tourism, logistics, health care sector, or retail business, Covid has slowed down the business growth opportunities in a big way. In spite of the new norm of WFH, industries like IT, Banking, and Financial Services, Telecom could not completely avert the effect of the pandemic, and the public sector was also not an exception in this case. However, the market for digital payment has got a great boost, with governments across the world vouching for contactless payment methods to avoid the spread of the virus. Additionally, with WHO’s recommendations, online payment methods like UPI, Wallets, NEFT, IMPS, etc., were accepted by the majority of the people as their preferred mode of transaction for money transfers, bill payments, or payments of any kind of goods or services. In fact, many stand-alone business units and retailers had no other option apart from going for an online mode of business for their consumers; this also led to a big jump in the overall market share of Digital Payment Platforms.
Digital Payment Market Dynamics:
The market for Digital Payment has been seeing a great upward trend in recent times, especially with Covid 19 impacts; it’s been understood that e-commerce could be a very important tool in the world business arena. Small and medium-scale businesses have received a great amount of support through e-commerce sales. Therefore, in the upcoming day's e-commerce will provide rock-solid support in taking the digital payment market to a new high.
Specifically, there are few reasons which can be considered as factors behind this uprise:
Policies of governments to encourage cashless payments and consumer behavior evolvement
A rapid rise in smartphone users in developing nations across the world, making the digital payment process a more convenient and user-friendly option
Business outlets opting to adapt with mobile-based payment applications such as Google pay, Phone May, Amazon pay, Pay Pal, Apple Pay, and the list continues.
Drivers & Restraints:
Different analyses and surveys have concluded that the healthcare industry is going to play a big role in the overall upsurge in the Digital Payment Market.
Several governments have vouched for digital payment methods during the pandemic, especially in places like hospitals where the chances of the long queue are more.
In fact, age demographics play a big role in the advancement of digital payment as it makes the payment process smooth and convenient for a majority of the aging population.
The fact that any digital payment option will save everyone time plays a pivotal role in this aspect. The average time needed for a digital transaction takes around 12.5 sec, whereas for cash transactions, it is 33.7 sec, and for different types of card transactions, it is 26.7 sec.
The overall ease provided by digital payment will eventually positively impact the businesses, revenue, and customer experience.
Additionally, with technologies such as Radio Frequency Identification, Near-Field Communication, Host card Emulation, the transaction process will only become better and faster.
In spite of all the silver linings, the cross-border payment transactions are still under question, and this is one factor that can play spoil-sport if not addressed properly on time.
The overall Digital Payment market is segmented in various parts on the basis of components, services, and regions.
Based on the Size of the Organization:
Based on the size of the organization, it can be divided into Small and Medium-sized Enterprises and Large Enterprises. Basis the customer requirements, competitiveness in the market & operations related to business, Digital Payment has already got a lot of acceptance amongst large-scale Enterprises.
By Type of Solutions:
As far as the type of solutions is concerned, the popularity of digital payment wallets is on the rise. It’s like cash containing virtual platform, which can be sub-categorized into two groups open and closed-loop wallets. Open ones are for Point of Sales, Purchasing of various materials and goods, Transferring Money and so on. On the other hand, closed-loop wallets are used for buying goods and various kinds of services from wallet providers.
Based on Verticals:
The expansion and reach of the digital payment market are increasing at a rapid pace. Some of the sectors where it has already penetrated are banking & other finance-related services, the E-commerce and retail sector, Healthcare industries, Travel and Hospitality industry, logistics, and so on.
Based on the recent reports, North America is going to have the biggest share in the Digital Payment Market. The primary reason behind this is the popularity of Digital payment amongst US Citizens; a large number of citizens believe that smartphones and Tablets are preferable tools to shop, and additionally, the presence of major players in the region can also be one of the reasons behind its market share.
Apart from that, regions like Asia-Pacific, Europe, Middle East & Africa will also see a significant boom in the market for Digital Payment. An important thing to note here is that the APAC region is expected to witness the highest growth rate. Countries like China and India have taken several initiatives to upgrade the market in that region. To give an example in this aspect, Asian Payment Network is a platform where several countries like China, Malaysia, Thailand, Japan, Newzealand, etc., have come under one umbrella to promote transaction process across borders.
Digital Payment Market Major Players:
There are various players in the field who are going to make a sustainable difference; some of the prominent players are PayPal, Visa Inc., MasterCard Incorporated, Amazon.com, Paytm Mobile Solutions Private Limited, Alipay.com Co. Ltd and so on.
Scope of the Digital Payment Market Report:
The report will analyze the digital payment market from various aspects. The analysis is primarily based on recent trends, drivers and restraints, various segmentations, and major players in the field.
|Market Size||USD 287.56 Billion|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Component, Size|
|Geographies Covered||North America, Europe, Asia-Pacific|
|Key Vendors||PayPal Visa Inc. MasterCard Incorporated Amazon.com Paytm Mobile Solutions Private Limited Alipay.com Co. Ltd|
|Key Market Opportunities|
|Key Market Drivers||Different analyses and surveys have concluded that the healthcare industry is going to play a big role in the overall upsurge in the Digital Payment Market.|
The Digital Payment market can possibly achieve a growth rate of 14.83% and will reach USD 287.56 Billion by 2030.
The market size is estimated to be USD 287.56 Billion by 2030.
The top players recognized in the report are Worldpay, Inc. (US), ACI Worldwide, Inc. (US), YapStone, Inc. (US), BlueSnap Inc. (US), PayU (Netherland), Stripe (US), Fiserv, Inc. (US), PayPal Holdings, Inc. (US), First Data Corporation (US), Wirecard AG (Germany), Novatti Group Limited (Australia), Aliant Payment Systems Inc. (US), Aurus Inc. (US), Adyen NV (Netherland), Global Payments Direct, Inc. (US), among others.
Fiserv Inc. had launched mobile bill presentment that helps clients digitally offer a customer’s bill in a mobile wallet. At the same time, it supports alerts as well as notifications that boosts the payment speed by giving reminders to customers about paying their bills on time.
Retail & E-Commerce, Healthcare, IT & Telecommunication, BFSI, Hospitality, Media & Entertainment, and others are the main vertical making use of digital payment services.
Asia Pacific, South America, Europe, the Middle East & Africa and North America, are the regions among which the market is anticipated to grow in the coming years.
Enterprises opt for on-premises deployment in order to have complete control of their assets as well as infrastructure and also to improve their online security measures.