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 2030

Digital Payment Market Overview

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.

Segmentations:

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.

Regional Analysis:

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. 

• With Paypal announcing the payment method based on QR Code for the customers to make their transaction for buying and selling goods around 28 major markets across the globe, the Digital Payment market will surely get benefited. 


• The Authorization Lift introduced by Finserv in 2020 is to ensure smooth debit card transactions with a minimal amount of risks involved.


• Additionally, in 2020 itself, FIS has also announced the incorporation of G-Pay for purchasing Hand-Held Phones online.


• These recent developments are quite encouraging for the progress of the overall Digital Payment Market.

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.