The global digital payments market is predicted to reach USD 68.51 billion in 2024 and USD 257.52 billion by 2032, growing at a CAGR of 18% during the forecast period.
Digital payment is a form of payment that is done through digital methods. In digital payments, both the payer and the payee use digital modes to send and receive money. There is no cash involved with digital payments. Government initiatives around the world are helping to improve the global digital payments space; the emphasis on shifting to a cashless economy leads to favorable regulation. Additionally, the digital payments ecosystem helps governments fight tax evasion and track money. Global demand for smartphones is increasing dramatically, and technological advancements such as 5G are expected to increase the global number of smartphones further. According to Ericsson, in 2019, global smartphone subscriptions stood at 5.6 billion and are expected to reach 7.4 billion by 2025. It is considered an important driving force for the digital payments market.
The strong growth of digital banking has forced banks to transform their existing operations into an omnichannel approach involving web, mobile, or physical branches. Therefore, banks offer various forms of digital experiences, such as online banking, digital banking, and online banking. Mobile banking and net banking.
According to the Fujitsu Banking Digital Transformation Report 2018, the motivation for digital transformation in the BFSI industry is to improve bank efficiency (31%), followed by growth (30%).
Almost all banks offer online banking to reduce the hassle for customers who want to go to the physical bank branch. Some banks even allow customers to deposit a check simply by taking a photo of it. According to Pepper's change in the 2019 banking report, the ease and efficiency of transactions were the main reasons why customers chose online banking.
In emerging nations like China and India, mobile banking is increasing at a higher rate than in developed markets. This is credited to the price-sensitive population, and mobile banking services offer cash rewards, vouchers, and coupons that can be redeemed in future transactions.
In order to combat the competitive scenario in this market, organizations invest in futuristic technologies to deliver better customer experiences. Digital payments provide important customer information that should help organizations define their future tactics. Digital payments are becoming crucial in enhancing the customer experience and increasing business revenue. Transaction information collected from digital payments offers merchants clear data about customers and helps improve various aspects of the business, including decisions related to marketing, promotions, and customer service. The payment data management and analysis solution is a useful tool, as the data collected by several payment devices is analyzed to gather useful insights, helping merchants to better understand consumer behavior. Additionally, digital payments are expected to contribute to revolutionary, responsive, and frictionless shopping experiences for customers.
Cross-border trade increases year after year as more and more organizations buy goods and services around the world. Because of the shortage of a single universal standardization and different government regulations, digital payment providers cannot take advantage of this opportunity. Countries have different data storage compliance and payment regulations, making cross-border payments inefficient. Also, the national payment infrastructure is not designed for cross-border payments. Additionally, complex government and rigid payment structures add challenges in implementing cross-border payment solutions. Therefore, without the establishment of global standards, the large-scale implementation of digital payment solutions is not possible.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
18% |
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Segments Covered |
By Type, Solution Type, Deployment Mode, Organization Size, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Alipay, Amazon Pay, Apple Pay, Tencent, Google Pay, First Data, Paypal, Fiserv, Visa Inc. MasterCard and Others. |
The digital payments market in the Asia Pacific is expected to grow at the highest CAGR during the forecast period. This growth is credited to the rising need for digital payments and progressions in digital technologies that benefit all Asian Pacific market stakeholders. The increasing number of mobile subscribers and the feasible solutions offered by banks, mobile network operators, and payment agents are crucial factors supporting the development of the digital payments business in the Asia Pacific.
In April 2020, Amazon India plans to extend interest-free credit to customers to purchase products on its platform or pay bills in partnership with lenders, such as Capital Float and Karur Vysya Bank, for the initiative. The service will allow consumers to purchase commodities on the Amazon platform.
In April 2020, Paytm Payments Bank has partnered with Mastercard to issue physical and virtual debit cards. The contract aims to offer cards to the beta customers of this bank during an initial launch, followed by its entire user base in no time.
By Type
By Solution Type
By Deployment Mode
By Organization Size
By Region
Frequently Asked Questions
Digital payment methods often incorporate robust security measures such as encryption, tokenization, biometric authentication, and real-time fraud detection, making them generally as secure, if not more secure, than traditional payment methods like cash or checks.
Emerging technologies like blockchain are revolutionizing the digital payment landscape by enhancing security, reducing transaction costs, and increasing transaction speeds. Blockchain-based cryptocurrencies and smart contracts offer decentralized and transparent payment solutions, disrupting traditional financial systems.
Trends shaping the future include the rise of mobile wallets and digital banking, the integration of Internet of Things (IoT) devices for seamless payments, the convergence of online and offline shopping experiences, the emergence of central bank digital currencies (CBDCs), and the increasing role of artificial intelligence (AI) in personalized financial services.
Digital payment providers are promoting financial inclusion by offering low-cost or free accounts, simplified onboarding processes, innovative payment solutions for underserved populations (such as mobile money in rural areas), and partnerships with governments and NGOs to provide access to basic financial services and education.
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