Digital payment is a method of paying through digital modes. In this case the payer and the payee both of them use the digital method to either send or receive the money. This type of payment is known as the electronic payment. According to the industry standards, digital payment is called as cashless transaction performed through digital channels.
Statistics:
The global digital payments market was valued at US$ 7,360 Bn in 2021 and is forecast to reach a value of US$ 22326.5 Bn by 2030 at a CAGR of 12.8% between 2022 and 2030.
Figure 1: Global Digital Payments Market Value (US$ Mn) Analysis and Forecast, 2017 - 2030
Key Developments:
In September 2021, Master Card increased its ability deep into the sector of digital assets or profits with a deal to adopt CipherTrace, a dominant crypto currency company with the investments in around 900 cryptocurrencies. The collaboration provides CipherTrace’s suite of digital benefits and the cyber security of the Master Card to offer trade and commerce with the vast transparency to aid in detecting and understanding the threats and assist to manage their digital assets official and agreement requirements.
In November 2021, Amazon.com Inc., has invested INR 1,000 crore in Amazon Pay, the digital transactions and economical services unit of the Amazon India, amidst an increasing clash with Walmart adopted Flipkart in India’s leading online retail market. Moreover, the company's basic plan is to provide Amazon customers the capacity to purchase without making a new account or ingoing credit card data.
Figure 2: Global Digital Payments Market Share (%), By Region, 2021
Market Drivers:
Driver 1:
The increasing use of smart phones and the growth in the smart phone industry is expected to boost the growth of the global digital payments market. As per the report published by Statista, around 1.43 billion smart phones were sold globally out of which 24% were Apple smart phones.
Driver 2:
The rising demand and the approval of several Android smart phones is anticipated to fuel the growth of the market. For instance, as per Ericsson, the smartphone subscription count globally has crossed nearly 6 billion and is still projected to rise by 700 million in the upcoming years. China, India and U.S have the highest penetration of smartphone users. And the subscription is projected to reach 7516 million.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 7360 Bn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 12.8% | 2030 Value Projection: | US$ 22326.5 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Wordplay Inc. (Fidelity National Information Services), PayPal Holdings Inc., MasterCard Incorporated (MasterCard), Stripe Inc., Alphabet Inc., Fiserv Inc., Visa Inc., Alipay.com Co. Ltd, Amazon Payments Inc. (Amazon.com Inc.), Paytm (One97 Communications limited), Apple Inc. and Mobiamo Inc. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Restraints:
Restraint 1:
Due to the lack of global payment systems providing comfortable use, lack of global standards, and varied government regulations in several countries is expected to hinder the growth of the global digital payments market.
Restraint 2:
Anyhow, the mode of digital payments from one country to the other is predicted to be expensive, slower and low transparent compared to the domestic payments. Due to the complications linked with this method it is expected to hamper the growth of the global digital payments market.
Market Opportunities:
Opportunity 1:
The rising online payments and real-time payment modes over the pandemic has increased the use of the digital payment mode. Furthermore, many businesses & trades are rapidly shifting towards the method of cashless transactions, such as MPOS transactions. The rules and regulations along with the partnership made by the government globally is expected to offer lucrative growth opportunities to the digital payment market.
Opportunity 2:
The transformation towards the UPI payments in India is also providing several opportunities for the growth of the global digital payment market. For instance, as per the National Payments Corporation of India (NPCI), UPI payments reached a monthly record of 2.3 Lakh billion transactions, which was worth INR 4.3 Lakh crore in January 2021.
Market Trends/Takeaways:
Trend 1:
Despite the threat of cybersecurity, the efforts of the e-commerce players to facilitate seamless payments between buyers and sellers and showing the barriers to overcome has laid a strong establishment of the market and is expected to boost the growth of the global digital payments market over the forecast period.
Trend 2:
A transition from traditional POS terminals to incorporating new methods, such as integration of technologies, like Artificial Intelligence and Machine Learning, is expected to empower a seamless experience to the customers which is projected to be the key trend in the growth of global digital payments market.
Competitive Landscape:
Major companies operating in the global digital payments market are Wordplay Inc. (Fidelity National Information Services), PayPal Holdings Inc., MasterCard Incorporated (MasterCard), Stripe Inc., Alphabet Inc., Fiserv Inc., Visa Inc., Alipay.com Co. Ltd, Amazon Payments Inc. (Amazon.com Inc.), Paytm (One97 Communications limited), Apple Inc. and Mobiamo Inc.
The entities included in the end-to-end processing of a digital payment transaction comprise the merchant, the consumer, the bank, and the payment network. Merchant, refers to, shopping malls, retail outlets, and e-commerce portals and service providers that give the facility to transact or settle dues using digital payments.
Market Dynamics:
Availability of profitable discounts in digital payments is expected to drive the growth of the global digital payments market. For instance, to encourage digital payments, Indian government has taken many key initiatives to expand the transaction rate through IMPS, UPI, Unstructured Supplementary Service Data, Aadhar Pay, and debit cards. Digital payments play a vital role in expanding the number of people holding bank accounts, as the payment bank facility allows opening and operating bank accounts with the help of mobile phones in remote places also. The introduction of digital wallets is expected to offer lucrative growth opportunities in the global digital payment market.
On contrary, the increasing cyberattacks is expected to hinder the growth of the global digital payments market. As per the Central Statistics Office in 2021, the loss incurred due to cyber-attacks was US$ 6 trillion annually.
Key features of the study:
Detailed Segmentation:
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