Digital Payment Market

As per Wantstats, the global Digital Payment Market has been growing significantly over the past few years. It is expected to reach USD 2,59,252.6 Million by 2030, at a CAGR of 15.0% during the forecast period, 2023–2030.

The global digital payment market is expected to grow significantly over the forecast period due to several factors. The growth of the Global 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.

Digital payments are payments made through digital or online channels that do not entail the exchange of actual cash. This type of payment, also known as an electronic payment (e-payment), is the transfer of value from one payment account to another in which both the payer and the payee utilize a digital device such as a mobile phone, computer, or credit, debit, or prepaid card. A firm or an individual could be the payer and payee. This means that in order for digital payments to take place, both the payer and the payee must have a bank account, an online banking method, a device from which to make the payment, and a medium of transmission, which means they must have joined up with a payment provider or have a payment provider or an intermediary such as a bank or a service provider. A digital payment transaction can take place both online and in person with the payee. For example, if a customer pays via UPI on an e-commerce website or buys from his local grocer and pays him using UPI while shopping at the store, both transactions are digital. UPI, NEFT, AEPS, mobile wallets, and PoS terminals are all examples of digital payment methods. UPI is the most popular payment method, with transactions exceeding $1 trillion in value.

The switch to digital payments and receipts offers some obvious advantages, particularly for small enterprises. Consumers and businesses are now expecting digital payments to be available for faster and more secure payments with no risk or fees. The payer possesses a mobile phone, which allows for further validation via fingerprint or other verification or biometric approach, so reducing risk.

Omnichannel use of digital payments has increased over time, while it has fallen from an all-time high of 58 percent in 2020. Some shifts in digital adoption appear to be due to the COVID-19 epidemic and may be temporary in 2020 and 2021. In-app purchases are an interesting case in point: when consumers stayed at home more, ride-share usage fell as expected, while meal delivery surged. In fact, online payments were the only digital payment category to expand, increasing by 12 percentage points in 2021, probably as a result of pandemic-related behavior changes like more time spent at home.

Consumers' trust in financial services and technology industries is unchanged from last year, with the relative rankings of key providers steady across age groups. Banks and established payment networks (Visa, Mastercard) continue to lead in terms of confidence, however familiar digital companies (Amazon, Apple, and PayPal) are closing the gap. Consumer trust in newer fintech’s is often lower, maybe due to a lack of brand knowledge and familiarity.

The global Digital Payment Market has been segmented based on component, deployment model, organization size, vertical, and Region. The global Digital Payment market, in this report, has been segmented on the basis of components into solutions and services. The solution segment accounted for the largest market share with a market value of USD 60,086.9 Million in 2022, which is projected to grow at a CAGR of 15.1% % during the forecast period. The global Digital Payment market, in this report, has been segmented on the basis of deployment model into SaaS, PaaS, and On premise. On-premises accounted for the largest market share with a market value of USD 46,952.7 Million in 2022, which is projected to grow at a CAGR of 15.1% during the forecast period. The global Digital Payment market, in this report, has been segmented on the basis of organization size into small & medium enterprises and large enterprises. Large Enterprise accounted for the largest market share with a market value of USD 41,460.6 Million in 2022, which is projected to grow at a CAGR of 14.3% during the forecast period.

Based on vertical, the market is divided into BFSI, IT & Telecommunication, Retail & E-commerce, Hospitality, Healthcare, Media & Entertainment, and Others. Based on Region, the market is divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for the largest market share with a market value of USD 31,875.5 Million in 2022 and is projected to grow at a CAGR of 13.3%%.

During the study, Wantstats analyzed the major players that contributed a significant share to the growth of the global Digital Payment market. These 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. These players focus on innovating their product/solution/services offerings in the Digital Payment industry and thus, invest in research and development to present a cost-effective Digital Payment that provides great features, expanding the practice area to cover the maximum number of clients, flexible and reliant products, and service offerings. Key players have been striving to enhance their market share through strategic developments, including partnerships, mergers & acquisitions, product developments & enhancements, expanding their global reach, and strengthening their client base.