USD 61.3 billion
Digital Payment Market Size, Share, Growth Analysis, By Offering(Payment Gateways, Payment Processors, Payment Wallet, POS Solutions, Services), Transaction Type(Domestic, Cross Border), Payment Mode(Cards, Digital Wallet, ACH Transfer, Others), Vertical, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG40G2012 |
Region:
Global |
Published Date: June, 2024
Pages:
165
|Tables:
69
|Figures:
75
Digital Payment Market Insights
Digital Payment Market size was valued at USD 9.61 Trillion in 2022, USD 10.53 Trillion in 2023 and is projected to grow USD 21.83 Trillion by 2031, growing at a CAGR of 9.55% in the forecast period (2024-2031).
There has been an increase in the number of digital payments in the last few years due to the increasing smartphone usage and contactless payments. Based on SkyQuest’s in-depth analysis, it was found that in year 2023, approximately 45% global transactions were made through digital payment methods, which indicates consumers’ preference for convenience. This tendency is highest in the countries with developed economies where the employment of mobile banking and e-shops is more prominent. The shift is also quickly taking shape in the emerging market more of which are adopting mobile wallet and payment applications. Some of the market participants that are present currently are the traditional market players like PayPal, Square, Alibaba, and other financial institutions that have adapted to the market shift. Security remains a key factor influencing the advancement of new techniques of encryption and authentication to guard the users ‘information as in the future, the market of digital payments is expected to sustain its growth with more companies and customers recognizing benefits offered by prompt and borderless payments over the digital media. Thus, consistent implementation of AI and blockchain technology will further enhance the skill development, efficiency and security of payments globally.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Mobile Payment
Fastest Growth
Mobile Payment
Growth Rate
20.8% CAGR
Global Digital Payment Market ($ Bn)
Country Share for North America Region (%)
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Digital Payment Market Segmental Analysis
Global Digital Payment Market is segmented By Offering, By Transaction Type, By Payment Mode, By Vertical and Region. Based on Offering, the market can be segmented into Solutions(Payment Gateway Solutions, Payment Processor Solutions, Payment Wallet Solutions, Point Of Sale (POS) Solutions, Other Solutions), Services(Professional Services[Consulting, Implementation, Support and Maintenance], Managed Services). Based on Transaction Type, the market is segmented into Domestic, Cross Border. Based on Payment Mode, the market is segmented into Card, ACH Transfer, Digital Wallet, Other Payment Modes. Based on Vertical, the market is segmented into BFSI, Retail & E-Commerce, IT & ITwS, Telecom, Healthcare, Travel & Hospitality, Transportation & Logistics, Media & Entertainment, Other. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Transaction Type
In 2023, the domestic segment was the largest one within the global industry. The domestic segment was the largest segment in because of volumes generated within domestic markets The domestic customers are already embracing digital payments This is because of the integration of digital wallets and mobile banking apps among the merchants and the service providers, moreover, with governments encouraging the shift towards the cashless economy and integrating payment rails into activities. They also tend to make payments online within their own countries to reduce the time, cost and energy of tracking expenditures.
On the other hand, in 2023 the cross-border market is anticipated to exhibit the fastest growth rate in the entire forecast period. This is due to the rise of international companies, individuals working remotely, and tourists who require quick and safe methods to transfer money across borders. Other factors include the need for innovations that improve the speed and cost of sending remittances, enabled by online tools. Advances in blockchain and financial institutions' cooperation to minimize operations costs and maximize transaction speed only deepen this process. Although cross border digital payments have some issues like regulation and exchange rate, the growth trend is increasing dramatically based on globalization and digitalization in the financial services.
Analysis by Vertical
Media & entertainment segment ranked top among all other segments in terms of adoption in the year 2023. This can be attributed to the ever-increasing use of the subscription- based services and the trends of streaming of content. In light of this, SkyQuest’s finding states that in 2023 the level of digital payments in this sector stood at about 30% of the overall global payments. Users are satisfied with digital payments when it comes to streaming, downloads, and in-application purchases because it allows them to pay through the likes of Netflix and Spotify. Moreover, the inclusion of secure payment gateways in over-the-top gaming and digital media platforms has taken this dominance to the next level. Successful adoption of payment digital technologies, and superior enabling user experiences make it a leader in the digital economy.
The BFSI segment is expected to grow at the fastest rate over the projection period for the digital payment market. This is driven by the rising demand for fintech solutions and digital banking services. For example, the digital payments market share was dominated by the BFSI sector, and it has shown an annual growth rate of more than 25% in 2023. Elements like digital banks, peer-to-peer lending, and mobile payment services are examples of disruptive trends altering traditional banking models. Customers prefer digital payment methods for banking operations, loan repayments, and insurance premiums hence the growing popularity of the payment options. Application of new technologies such as using Artificial Intelligence in chatbots and using blockchain for secure transactions is a clear indication that this sector is ever evolving within the digital payment systems.
Global Digital Payment Market By Payment Type
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Digital Payment Market Regional Insights
Asia-Pacific holds the largest share in the global digital payments market because of the following reasons. The region has a large population with growing Internet and smartphone usage that can be observed in countries such as China, India, and SEA countries. The region along with a deeply rooted value on digital technology and government push of cashless societies mainly contribute to the general use of digital payment systems. Further, mobile wallets and payment applications are also inseparable and are widely used in various purchases, including grocery shopping and paying bills. It goes without saying that the development of online shopping enhances this trend since people always want to make easy and safe payments. In conclusion, Asia-Pacific region tops the other regions due to it being most prepared to adopt digital technologies in everyday use.
North America is the fastest growing region in digital payments, and growth in the region is due to developed financial system and consumers’ preference towards digital payments. An active fintech community in the region helps maintain progress in payment innovations such as contactless payments and mobile wallets. Such giants as PayPal, Square, and Stripe are oriented on digital payment services targeting the population who is used to buying things online or using different digital services. COVID has contributed to the increased adoption of online payments due to the risks associated with physical contact. Favorable legislation for fintech developments and high customer confidence in technologies’ security help North America to be ahead of other regions in the fast growth of digital payments for purchases, entertainment, and financial needs.
Global Digital Payment Market By Region
- Largest
- Fastest
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Digital Payment Market Dynamics
Digital Payment Market Drivers
Increasing Smartphone Penetration Accelerates Adoption of Digital Payments
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Smartphone proliferation across the world makes digital payments even more popular and even essential. As customers continue to shift from PC to mobile devices, mobile payments make transactions easier and more convenient. This trend is even more evident in the emerging market where smartphone usage is gradually experiencing growth due to adoption of digital financial services.
E-commerce Expansion Fuels Demand for Secure Digital Payment Solutions
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The constant progression towards online platforms for shopping increases the need for more and better payment and protection systems. E-commerce has gained popularity amongst consumers and due to the variation in shopping preferences and time convenience, payment gateways and wallets ease the check-out process. Large e-Commerce firms such as Amazon and Alibaba advance the use of digital payments by integrating payments into their merchandise and nudging consumers towards online transactions.
Restraints
Security Concerns Pose Significant Challenges to Digital Payment Adoption
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Despite all the new trends and innovations, there is still issues concerning the security of digital payment systems. This situation reduces consumer confidence, especially in regions that do not fully incorporate proper cybersecurity measures. To mitigate these risks, further expenditure on encryption of data and better user identification processes must be continued to protect identity and finances.
Regulatory Complexity and Divergence Impede Market Growth
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As it stands, the various regions have their different regulatory systems, and this poses as challenges for digital payment providers. The compliance requirements are inconsistent across countries, and they influence market access and performance for multilateral companies. Undergoing changes in the regs takes a lot of time and costs money, thus becoming a brakes for a market in some jurisdictions. The challenges raise conflict of standards, calls for improved coordination between governments and industry participants, and sound policies that advance sustainable digital payments across the globe.
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Digital Payment Market Competitive Landscape
The competitive landscape of the digital payment industry is actively populated by traditional financial organizations, large IT companies, and innovative fintech companies. These giants include PayPal, Square, and Alibaba that have enhanced the speedy payment system and with a broad market coverage. To meet consumers’ demands, conventional banks start introducing more digital options while tech giants like Apple or Google develop their eco-systems with smooth payment integration. Startups compete with new offerings targeted to new segments or technologies different from those of established firms. Stiff market competition emerges as players offer better user experience, security solutions, and partnerships to realize market share within this growing niche.
Digital Payment Market Top Players Company Profiles
- WeChat Pay (China)
- Visa Inc. (US)
- Mastercard Inc. (US)
- American Express Co. (US)
- Apple Pay (US)
- Google Pay (US)
- Samsung Pay (South Korea)
- Square Inc. (US)
- Stripe Inc. (US)
- Paytm (India)
- Skrill (United Kingdom)
- TransferWise (Estonia)
- Dwolla Inc. (US)
- Venmo (US)
- Zelle (US)
- Amazon Pay (US)
- QuickPay (Denmark)
- Klarna (Sweden)
Digital Payment Market Recent Developments
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In May 2024, NPCI International Payments Limited (NIPL) known as the global arm of India’s NPCI is collaborating with the Bank of Namibia to introduce a fast payment system which is similar to India’s UPI with an objective of improving Namibia’s financial infrastructure.
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In February 2024, India’s digital payment systems UPI became popular across borders. By embracing UPI payments, such development brings about reduced expense involved when transferring funds abroad or even making remittance payments domestically. Oversea markets including Singapore, Malaysia, UAE, France, Nepal, UK Mauritius and Sri Lanka among others have taken up UPI.
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In April 2023, the PayPal Payment Solution announced that they can now allow PayPal transactions through Apple’s payment system and facilitate saving methods of payment via PayPal’s vault as well as incorporate updating options on real-time basis for the accounts.
Digital Payment Key Market Trends
- Integration of Biometric Authentication: An important innovation in the digital payment market is connected to facial recognition. Biometric security including fingerprint scanning, facial recognition, and voice recognition are becoming more popular as opposed to normal codes or passwords. This trend helps in increasing security by giving out unique physiological identifiers which will be used to authenticate transactions thus decrease fakes and increase in the ease of the users. Biometric authentication is expected to be integrated into most digital payment systems around the world because as people increasingly trust biometric technology and as laws governing their use develop, more businesses utilize them.
Digital Payment Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Digital Payment Market analysis, digital payments market is growing steadily with the help of several factors. Digital payment solutions use is escalating globally due to the growth of smartphones and e-commerce platforms. Players like Asia-Pacific are dominant in the market backed by increased mobile connectivity and government policies on reducing the use of cash. North America, on the other hand, is growing at a faster rate because of the developed financial technology structure and more importantly, increasing consumer needs to make transactions online.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 9.61 Trillion |
| Market size value in 2031 | USD 21.83 Trillion |
| Growth Rate | 9.55% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Trillion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Digital Payment Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Digital Payment Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Digital Payment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Payment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Payment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Payment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Digital Payment Market Report Snapshots
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