The global Digital Payment market size is expected to be worth around US$ 250.10 billion by 2030, according to a new report by Vision Research Reports.
The global Digital Payment market size was valued at US$ 58.35 billion in 2020 and is anticipated to grow at a CAGR of 19.6% during forecast period 2021 to 2030.
Growth Factors
The growth can be attributed to the growing volume of non-cash transactions and a rise in the fintech sector's technological developments. Various fintech companies and banks are making efforts to improve their digital offerings to meet the changing needs of customers. For instance, in January 2021, Mogo Inc., a financial technology & digital payment company, announced the shareholder's approval for the acquisition of Carta, a digital payment company. This acquisition is expected to help the former company in strengthening its presence in the market.
Biometric authentication in digital payments is expected to gain momentum in the coming years. It is a verification method that involves the biological characteristics of the person. The verifications include facial recognition, fingerprinting scanning, heartbeat analysis, and vein mapping. According to Payments Industry Intelligence, biometric authentication solutions are expected to be used to secure USD 2.5 trillion worth of mobile payment transactions by 2024.
The increase in the adoption of new technologies such as self-checkout systems in the retail industry is expected to drive market growth. In recent days, various companies are making efforts to deploy self-checkout systems in retail stores. For instance, in June 2020, Walmart, a retail company, announced the testing of its self-checkout retail stores at multiple locations in Arkansas, Fayetteville, during the pandemic. These stores will replace the traditional cashier checkout lanes with self-checkout systems.
The COVID-19 pandemic is anticipated to impact the market growth favorably in the near future. The pandemic has led to an increase in the use of mobile-based payment solutions and online sales, which are some of the major factors driving the demand for digital payment solutions globally. According to the study conducted by Accenture, transactions worth USD 7 trillion are expected to shift from cash to card and digital payments by 2023.
Report Highlights
The payment processing segment dominated the market in 2020 and accounted for more than 25.0% share of the global revenue. The increasing preference for online shopping worldwide is prompting retailers to adopt payment processing solutions to provide customers with seamless checkout experiences. Players providing payment processing solutions are focusing on mergers and acquisitions and partnerships for strengthening their market presence. For instance, in July 2019, Red Dot Payment, a payment solution provider, was acquired by PayU to expand its presence in Singapore.
The application program interface segment is anticipated to register the highest growth rate over the forecast period. An application program interface enables integration with various industry-specific payment platforms, online payment platforms, digital card payment platforms, and cryptocurrency digital wallets, among others. Companies such as Venmo, PayTM, PayPal, and PayMaya Checkout are trying aggressively to create payment-based APIs for integrating multiple modes of payments. For instance, the API offered by PayTM integrates payment features in e-commerce applications and helps companies in improving customer experience.
The point of sales segment dominated the market in 2020 and accounted for more than 52.0% share of the global revenue. Point of sales includes the systems used by retail stores for processing transactions. Point of sales provides benefits such as fast checkout options, customized customer experience, and multiple payment options. Various retailers and restaurants adopt the point of sales mode of payment for enhancing customers' payment experiences. For instance, in January 2020, Grubhub, an online food ordering company, announced its partnership with ParTech Inc., a point of sales solution provider, to integrate point of sales solutions in its food ordering process.
The net banking segment is expected to register the highest CAGR over the forecast period. The benefits offered by net banking, such as enhanced time efficiency, ease of banking, and activity tracking are some of the major factors driving the segment growth. Various countries worldwide are witnessing an increase in internet banking users in recent days. Increasing internet penetration is also one of the factors driving the segment growth. According to the statistics provided by eMarketer, approximately 80% of the U.S. internet users accessed their bank accounts digitally in 2020.
The on-premise segment dominated the market in 2020 and accounted for more than 65.0% share of the global revenue. The on-premise deployment of digital payment solutions provides organizations with complete control over applications and systems, which can be easily managed by the organization's IT staff. At the same time, organizations use on-premise digital payment solutions to keep applications and systems secure from malicious threats. For instance, in November 2019, Microsoft announced its collaboration with ACI Worldwide. The collaboration offered advantages such as ease in long-term capital expenditure and improved security to on-premises customers of ACI Worldwide.
The cloud segment is anticipated to register the highest CAGR over the forecast period. The continued rollout of smart cities and the rising number of unmanned retail stores are some of the major factors propelling the growth of the segment. Simultaneously, the growing use cases of in payment are expected to create new growth opportunities for the segment in the coming years. According to Bambora, 20.4 billion devices were connected to IoT in 2020, owing to which, companies are trying to improve the features of IoT-based payments.
The large enterprises segment dominated the market in 2020 and accounted for more than 60.0% share of the global revenue. Large retail stores witness a large number of footfalls, which creates the demand for digital payment solutions for seamless checkouts. Digital payment solutions ensure a convenient checkout process for the customers by supporting various digital payment methods, such as smart banking cards, point of sales, and e-wallets. At the same time, retailers are also focusing on providing innovative payment solutions for customers. For instance, in October 2020, Klarna announced its partnership with Afterpay to provide Buy Now Pay Later services for online customers.
The small & medium enterprises segment is anticipated to register the highest growth rate over the forecast period. Small & medium enterprises are shifting from paper-based invoicing to digital invoicing, as paper-based billing systems tend to be expensive, prone to errors, and inefficient. Payment partners are focusing on partnerships with small & medium enterprises to support them in digitizing their payment systems. For instance, in October 2019, Armatic, an invoicing automation solution provider, was acquired by BlueSnap, a payment technology company. This acquisition enabled BlueSnap to enhance its digital payment solutions.
The BFSI segment dominated the market in 2020 and accounted for more than 23.0% share of the global revenue. An increase in remittances to low- and middle-income countries is expected to be one of the major factors generating new opportunities for market growth over the forecast period. Moreover, banks are also enhancing their offerings to compete with digital payment solutions providers such as Google, Amazon, and Facebook. For instance, in June 2019, Bank of America introduced a digital debit card to offer convenience to its clients.
The retail and e-commerce segment is anticipated to register a significant growth rate over the forecast period. The growing e-commerce sales is one of the major factors boosting the growth of the digital payment market. Additionally, the rising number of unmanned retail stores worldwide is also driving the segment growth. According to a study conducted by Televisory, China’s unmanned retail industry reached USD 503.25 million in 2020.
North America dominated the digital payment market in 2020 and accounted for over 35.0% share of the global revenue. The factors driving the demand for digital payment solutions in the North American region are the increasing deployment of smart parking meters and technology enhancements in these meters. For instance, in December 2017, the San Francisco Municipal Transportation Agency announced the implementation of a “demand-responsive pricing” program on 28,000 smart parking meters. Moreover, the growing number of unmanned stores in the U.S. is creating the demand for digital payment solutions. For instance, in November 2019, Ahold Delhaize, a Netherlands-based supermarket, announced the opening of its cashier-less store in the U.S.
Key Players
Aliant Payments
Aurus Inc.
Adyen
Financial Software & Systems Pvt. Ltd.
PayPal Holdings Inc.
Novatti Group Pty Ltd.
ACI Worldwide, Inc.
Global Payments Inc.
Wirecard
Authorize.Net
Market Segmentation
Solution Outlook
Application Program Interface
Payment Gateway
Payment Processing
Payment Security & Fraud Management
Transaction Risk Management
Others
Mode of Payment Outlook (Revenue, USD Billion, 2016 - 2028)
Bank Cards
Digital Currencies
Digital Wallets
Net Banking
Point of Sales
Others
Deployment Outlook
Cloud
On-premise
Enterprise size Outlook
Large Enterprises
Small & Medium Enterprises
End-use Outlook
BFSI
Healthcare
IT & Telecom
Media & Entertainment
Retail & E-commerce
Transportation
Others
Regional Outlook
North America
U.S.
Canada
Europe
Germany
U.K.
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa
The Digital Payment market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Digital Payment market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Digital Payment market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Digital Payment market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Digital Payment market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Digital Payment capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Digital Payment by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Digital Payment market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Digital Payment market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Digital Payment market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Digital Payment industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Digital Payment market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Digital Payment market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Digital Payment market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Digital Payment market. These factors have benefited the growth of the global market for Digital Payment. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Digital Payment. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Digital Payment are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
Research Methodology:
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
Primary Sources
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers