Digital Payment Market Research Report - Global Forecast till 2027

Global Digital Payment Market Research Report: By Component (Solution and Services), By Deployment (Cloud and On-Premise), By Organization Size (Large Enterprise and Small & Medium Enterprises (SMEs)), By Vertical (BFSI, Media & Entertainment, IT & Telecommunication, Hospitality, Healthcare, Retail & E-Commerce and others) - Forecast till 2027

ID: MRFR/ICT/6103-CR | August 2019 | Region: Global | 111 pages

Please note that the assessment period of report has been updated from 2018-2025 to 2020-2027. Cordially fill the sample form for updated data.

Market Overview


Market Research Future (MRFR) predicts the Global Digital Payment Market size to reach USD 120,245.9 Million with a 16.77% CAGR from 2018 to 2025 (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.


Impact of COVID-19 on Digital Payment Market


Global Digital Payments Market is expected to expand in sectors such as online gaming, OTT (over-the-top) media like Netflix, YouTube, and Amazon Prime, online grocery purchasing or food delivery apps like Instacart, Amazon, Doordash, and video streaming and meeting apps like Huawei Cloud WeLink, Skype, and ZOOM Cloud Meetings in the first half of 2020, while sectors such as airlines, travel & hospitality (tourism), malls/retail, theaters, and restaurants are facing a negative impact due to the COVID-19 pandemic.


As recommended by the World Health Organization (WHO), the Government of India has urged its citizens to make use of non-cash and contactless payment methods (such as NEFT, IMPS, UPI, and BBPS) and to encourage the transfer of funds, purchase of goods/services and payment of bills. In India, COVID-19 has resulted in a rise in online/digital payment transactions. Many retailers, as well as stand-alone shops, have been forced to close down their brick-and-mortar stores and sell them solely via online channels.


According to MRFR, sales in China decreased by more than 40% during the lockdown period (1st quarter of 2020) due to the coronavirus. A comparable impact is expected in India, as the digital payments sector is estimated to have reported a decline in transaction value of around 30% in March. The in-person digital transactions have been directly affected as public places such as malls/theaters, transport, hospitality, air travel, retail, and industries have been fully closed since 23 March 2020. Total payment volumes have decreased due to a decline in consumption and trade.


Almost one-third of the country's digital payments come from Online Travel Aggregators (OTA ), movie theaters, event booking portals, and shopping. With these sectors closed, the market for digital payments is predicted to fall in the first half of 2020. As a result, digital payment vendors in the country are projected to be directly impacted by decreased revenues. One of the leading providers of online payment solutions—Razorpay and payment gateway platform—CCAvenue reported that the number of transactions in the travel segment has decreased by almost 40%. Meanwhile, offline aggregators and service providers have claimed that closed shops in metro cities have contributed to a decline in the regular volume of payment transactions. The market for digital remittances is also projected to decrease in 2020, as most migrant workers and small and medium-sized businesses are shut down due to the lockdown. The digital payment industry is also projected to be adversely affected.


Market Dynamics


Drivers


Global initiatives to encourage digital payments


Countries around the world are introducing ICT technologies to boost digital economies. Governments are undertaking various measures to digitize the payment process. Digital payment is one of the key development imperatives of a country's economy. It can significantly bolster productivity and economic growth, improve transparency, increase tax revenue, increase financial inclusion, and open up new economic opportunities for end-users. The Government of India has initiated a range of initiatives to further encourage digital payments. Initiatives such as Digital India, the introduction of the Unified Payments Interface (UPI), and the helpline number 14444 serve as catalysts for the shift to digital payments. These initiatives help to encourage digitalization and raise understanding of the benefits of the use of emerging technology. Other countries like Singapore and Australia, have also launched a range of digital payment initiatives. The Singapore Monetary Authority (MAS) has urged individuals and businesses to make use of digital financial services and ePayments and to reduce visits to the premises of financial institutions in the light of the COVID-19 pandemic and to attain elevated safe distancing measures (FIs).


Restraints


Dearth of global standards for cross-border payments


Cross-border trade has been growing year-on-year (YoY) as more companies are procuring goods and services across the globe. Nevertheless, due to a lack of global payment systems providing ease of use, a lack of global standards, and various government regulations in different countries, digital payment providers are unable to capitalize on this opportunity. Different countries have different payment and data storage regulations. These regulations and compliances make cross-border payments ineffective. In addition, the domestic payment infrastructure is not intended for cross-border payments.


Over recent decades, many countries have developed high-and low-value payment systems based on proprietary communication and security standards. However, due to the independent growth of payment systems, there is a greater need for standardization and automation across inter-bank and intra-bank networks present across nations. This adversely affects banks and companies and also results in manual intervention to collect and repair data. Major banks with subsidiaries and branches can transfer funds to destination nations via intra-bank transactions. Beneficiaries are either credited directly in their account with the foreign operation or sent to their bank through bilateral transfers or through national clearing and settlement systems.


Market Segmentation


Global Digital Payment Industry has been segmented into Components, Deployment, Organization Size, and Vertical.


By component, the global digital payment industry has been segmented into solutions and services.


By deployment, the global digital payment industry has been segmented into Cloud and On-Premise.


By organization size, the global digital payment industry has been segmented into Large enterprise and Small & Medium Enterprises (SMEs)


By vertical, the global digital payment industry has been segmented into BFSI, Media & Entertainment, IT & Telecommunication, Hospitality, Healthcare, Retail & E-Commerce, and others.


Regional Analysis


North America to lead the global market


North America earned the highest market value of USD 13,864.1 million in 2018; the market is set to exhibit a CAGR of 17.50% over the forecast period. North America is expected to drive the global digital payment market over the forecast period owing to the existence of a large number of solution providers in the region.


Competitive Landscape


The market for digital payments is moderately concentrated. The competitive rivalry in the market examined is moderate, as a good number of players prevail. Companies operating in the market are required to continue to develop their products in order to maintain a sustainable competitive advantage over their rivals and to provide product differentiation.


Key Players



  • PayU (Netherland)

  • Aliant Payment Systems Inc. (US)

  • Aurus Inc. (US)

  • Fiserv Inc. (US)

  • BlueSnap Inc. (US)

  • Novatti Group Limited (Australia)

  • ACI Worldwide Inc. (US)

  • Stripe (US)

  • Adyen NV (Netherland)

  • Global Payments Direct Inc. (US)

  • First Data Corporation (US)

  • PayPal Holdings Inc. (US)

  • Worldpay Inc. (US)

  • Wirecard AG (Germany)

  • YapStone Inc. (US)


Recent Developments


April 2020-Paytm Payments Bank collaborated with Mastercard to issue virtual and physical debit cards. The deal will see the bank's beta customers issued cards in an initial roll-out, followed by its entire user base in short order.


Feb 2020-Paypal Holdings Inc. announced the launch of a peer-to-peer (P2P) payment feature in India. The service is based on the Universal Payments Interface (UPI), India's Indigenous Digital Payments Network, and will be rolled out in the immediate future.


Report Overview


This research report addresses key factors, constraints, and challenges in the global digital payment market, as well as geographic and segment revenue estimates and assessments. The base year is 2018; the projection period is 2018-2025. The segmentation of the market is described in the following manner:


Segmentation Table


By Component



  • Solution

  • Service


By Deployment



  • Cloud

  • On-Premise


By Organization Size



  • Large enterprise

  • Small & Medium Enterprises (SMEs)


By Vertical



  • BFSI

  • Media & Entertainment

  • IT & Telecommunication

  • Hospitality

  • Healthcare

  • Retail & E-Commerce

  • Others



Frequently Asked Questions (FAQ) :


The market can possibly achieve a growth rate of 16.77% in the following years.

The market size is estimated to be 120,245.9 million by 2025.

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.