Digital Payment Market

Digital Payment Market Overview

The digital payment market size is projected to grow from USD 127.8 billion in 2024 to USD 726.6 billion by 2035, representing a CAGR of 17.10%, during the forecast period till 2035.

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The new research study consists of digital payment market and trends analysis, detailed market forecast analysis, and provide actionable strategic recommendations.

The rapid digital transformation in entire business industries has surged the adoption of digital payment technology. Digital payment is a technique that allows the transfer of money or the process of transaction electronically without needing hard cash or checks. The technique uses digital platforms and devices to complete financial transactions between individuals and businesses. It incorporates several payment methods including bank transfer, mobile payment or wallets, contactless payments, cryptocurrencies, QR codes and payment tools, including credit / debit cards. These payments can be made through various channels like mobile device, computers, and point-of-sale systems. Additionally, the key attributes of digital payment are real-time & contactless transactions along with multiple payment methods that also provide security features.

Driven by this, over the past few years, the digital payment market is escalating exponentially and experiencing record breaking growth. Key driving factors, such as the high adoption of smartphones, the rise of contactless payments, and increasing government support and initiative for digital payments, fueling the market expansion. Besides, the rise of e-commerce, online payments, and the growing number of fintech companies are significantly boosting the market outlook. As a consequence, market players, financial institutions, and governments around the world are increasingly investing in the industry. For instance, in September 2024, the European Investment Bank (EIB) funded €220 million to Nexi Group, Europe’s biggest Pay Tech company to boost innovation in the digital payments sector.

By revealing the news of EIB’s first granted loan to a public company in the digital payment sector, Vice president of EIB, Galsomina Vigligotti, stated that this initiative marks significant progress in generating Europe-wide digital payment solutions, reducing cash usage and combating fraud and tax evasion. It also highlights the bank’s commitment to support digitalization and innovation in businesses and public sectors that align with the National Recovery and Resilience Plan. Overall, the market is anticipated to continue to rise driven by such key drivers during this forecast period.

Digital Payment Market Report Deliverabes

Digital Payment Market Share Insights

The digital payment market report presents an in-depth analysis of the various companies that are involved in offering digital payment, across different segments, as defined in the table below:

Digital Payment Market: Report Attributes / Market Segmentations

Digital Payment Market Segmentation

Market Share by Type of Solution

Based on the type of solution, the market is bifurcated into application program interface, payment gateway, payment processing, payment security & fraud management, transaction risk management, and others. In respect of digital payment solution market research, the payment processing solution is projected to propel the market growth with 38.21% of the market share by 2035. Payment processing is the core functionality of the digital payment system that controls the approval, routing, and settlement of transactions between banks and customers.

Further, global reach, cross boarder transactions and integration with multiple payment methods are augmenting market growth. However, payment gateway solutions are likely to register a faster 18.24% growth rate during this projection period. This can be ascribed to the significance of payment gateway that plays a key role in e-commerce transactions and online payments as they secure payment transfer data and authorizations. Along with this, this also prevents potential fraud by offering preventive tools including encryption, tokenization, and 3D secure authentication.

Market Share by Type of Payment Mode

On the basis of the type of payment mode, the market is fragmented into bank cards, digital currencies, digital wallets, net banking, point of sales, and others. With regard to contactless payment market research, the digital wallet segment is estimated to hold nearly 42.18% of the market share and will likely dominate the segment till 2035. The factor behind the growth of the segment is attributed to the largest adoption of mobile payment apps like Google Pay, Alipay and others that feature digital wallets, which have become popular and allow consumers to store payment information in their mobile devices and make payment simpler.

For instance, in August 2024, Google Pay introduced six additional features to help its users make digital payments without requiring linking their own bank account. Besides, the net banking segment is expected to grow at a higher CAGR of 19.08% throughout the projection period driven by growing implementation of advanced technology by financial institution and banks to meet the changing customer demand for convenance, ease of transaction, and improved tracking record.

Market Share by Type of Transaction

On the basis of the type of transaction, the market is split into cross boarder and domestic. As per the global digital payment industry report, the domestic segment is anticipated to boost the market and with the largest 64.33% of the market by 2035. This is mainly attributed to the higher transaction volume and expansion of the retail and e-commerce sector that substantially contribute to the growth of domestic digital payment. A domestic transaction generally has lower payment processing fees as compared to cross border transactions which makes it more appealing for consumers and businesses. Also, the same simplicity of conducting transactions within the same currency and regulatory framework supports the segment growth in the market. While cross border segment is expected to rise at a substantial CAGR of 18.91% in the near future owing to globalization and increased international trade.

Market Share by Type of Vertical

On the basis of the type of vertical, the market is divided into BFSI, healthcare, IT & telecom, media & entertainment, retail and e-commerce, transportation & logistics, and others. According to our digital payment market analysis, the BFSI segment is anticipated to acquire the highest 36.32% of the market share by 2035. This can be ascribed to the increased digital transformation in the banking sector. Traditional finance institutions including banks are swiftly implementing digital transformation to stay competitive and to meet the rising demand for cashless transactions. While retail & e-commerce sector is likely to expand at a noteworthy CAGR of 18.77% throughout this projection timeframe mainly due to an upsurge in online shopping trends, growing inclination towards mobile payments and growth of cross-border e-commerce.

Market Share by Geographical Regions

This segment highlights the distribution of the Digital Payment Market across various geographical regions, such as North America, Europe, Asia, Latin America, the Middle East and North Africa, and the rest of the world. As per previous years’ digital payment adoption statistics, North America is expected to capture the highest 49.17% of the market share and will lead the market by 2035. Additionally, Asia is emerging as the fastest growing region in technology adoption and is predicted to witness the highest 18.52% growth rate in the global market for digital payment over this forecast period. In the region, China, India, and Japan are significantly driving the market growth through their bourgeoning adoption of digital payment solutions. In addition to this, rapid expansion of e-commerce, high penetration of smartphone adoption, and emerging fintech companies in the region are bolstering the market progress in Asia.

Digital Payment Market Key Insights

The “Digital Payment Market, Till-2035: Industry Trends and Global Forecasts “report features an extensive study of the current market landscape, market size and future opportunities within the digital payment market, during the given forecast period. The market report highlights the efforts of several stakeholders involved in this rapidly emerging segment of the service providers industry. Key takeaways of the digital payment market report are briefly discussed below.

Key Drivers of the Digital Payment Market

Significantly, the rise of e-commerce and digital transformation has driven the adoption of contactless payment and cashless transactions. Recently, the rapid growth of e-commerce platforms like Amazon, Shopify, and others have spiked the volume of online transactions. Thus, online shopping payment methods have become necessary to enable seamless and secure payments for online customers. Apart from this, increasing government initiatives to encourage the adoption of digital payments, high penetration of smartphones and a surge in peer-to-peer payment apps are propelling the market progress. Additionally, continuous technological advancements in transaction processing technology, payment gateway integration, and shift in consumer behavior are some of the notable factors expected to drive the market expansion in the upcoming decade.

Digital Payment Market Competitive Landscape

The market for digital payment is highly competitive with the emerging fintech startup companies, establishment of technology giants and traditional financial institutions. However, major players including banks and financial institutions such as Citibank, Wells Fargo, and JPMorgan along with global payment networks like Mastercard and Visa are fortifying the market scope with their digital payment service offerings. These industry players are providing contactless card payments through credit / debit cards and mobile banking apps. In addition, tech giants, such as Google Pay, Apple Pay and Amazon Pay are leading the market by offering cross-border payment solutions, online transection security, and mobile wallet technology. As a result, this competition is boosting innovation and generating opportunities for technological advancements and market evolution.

Market Challenges in Digital Payment Market

Although the market is expanding rapidly, however, security and fraud concerns can limit the adoption of digital payment solutions. As digital payments are the prime targets for hackers as well as cyberattacks, data breaches and phishing schemes can compromise customer information, leading to financial loss. Along with this, complex and varying regulations can also pause challenges for companies to operate globally. Consequently, such restraints can curb the market evolution during this forecast period.

Regional Analysis: North America is Expected to Dominate the Market with the Largest Digital Payment Market Share

With respect to regional digital payment industry insights, North America is poised to dominate the market with early adoption of advanced technology especially in the US and Canada which have robust infrastructure for digital payment. Also, fintech innovation strengthens the ecosystem that supports modernization in digital payment solutions. Also, the presence of the world’s leading fintech companies like PayPal and Stipe, and their high venture capital investment stimulate the global market. Furthermore, the tech-savvy population, the highest penetration of smartphones, and the thriving online retail industry are substantially contributing to hold the leading position in the global marketplace. Moreover, supportive digital currency regulation and favorable conditions for cryptocurrency payment are further attributed to retaining its leadership in the future as well.

Leading Digital Payment Providers

Examples of key digital payment providers involved in the digital payment Market (which have also been captured in this market report, arranged in alphabetical order) include ACI Worldwide (US), Adyen (Netherlands), Apple (US), Aurus (US), BharatPe (India), FattMerchant (US), FIS (US), Fiserv (US), Global Payments (US), JPMorgan Chase (US), Mastercard (US), PayTrace (US), PayPal (US), PaySend (UK), PayU (Netherlands), Ripple (US), Spreedly (US), Square (US), Stax by (US), Stripe (US), Temenos (Switzerland), Verifone (US), VISA (US), WEX (US), and Worldline (France). This market report includes an easily searchable excel database of all the companies who have adopted the digital payment market.

Recent Developments In Digital Payment Market

• In September 2024, At GFF 2024, Visa launched new digital payment solutions including HDFC Bank’s all-in-one POS device, Payment NFC Card Soundbox, and Axis Bank’s Neo for Merchant app.
• In August 2024, NPST unveiled the latest AI-powered digital product portfolio at GFF2024. This includes a range of payment technologies including predictive risk intelligence, instant credit and delegated payments.
• In May 2024, Strip introduced innovative payment and financing tools. This UK’s first Stripe’s Open Banking-powered payment method features faster payouts, providing businesses a quicker and cheaper ways to access their earnings.

Digital Payment Market Report Coverage

The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain, across different segments. Amongst other elements, the market report includes:

• A preface providing an introduction to the full report digital payment market, 2019-2023 (Historical Trends) and till-2035 (Forecasted Estimates).
• An outline of the systematic research methodology adopted to conduct the study on the digital payment market providing insights on the various assumptions, methodologies, and quality control measures employed to ensure the accuracy and reliability of our findings.
• An overview of economic factors that impact the overall digital payment market including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
• An executive summary of the insights captured during our research. It offers a high-level view on the current state of the digital payment market and their likely evolution in the mid-long term.
• A detailed assessment of the digital payment market landscape, based on several relevant parameters, including year of experience, company size, location of headquarters, and ownership structure.
• Elaborate profiles of prominent players engaged in the digital payment market, featuring information on their year of establishment, location of headquarters, company size, company mission, company footprint, management team, contact details, financial information, operating business segments, digital payment market portfolio, moat analysis, recent developments, and an informed future outlook.
• A qualitative assessment of the various megatrends ongoing in the digital payment industry, including the rise in cryptocurrency and blockchain, and the growing shift towards contactless payments.
• An analysis highlighting the key unmet needs across the digital payment market, featuring insights generated from real-time data on unmet needs as identified from social media posts, recent publications, industry blogs and the views of key opinion leaders expressed on online platforms.
• An in-depth analysis of various patents that have been filed / granted related to the digital payment market and its components, based on various parameters, such as type of patent, patent publication year, patent age and leading players.
• A detailed analysis of recent developments in the digital payment market domain, based on relevant parameters such as year of initiative, type of initiative (partnerships and collaborations, expansions, funding and product launches), geographical distribution and most active players (in terms of number of recent developments).
• Key winning strategies framework that helps in analyzing the level of competition within an industry, by tracing the key market activities including partnership, funding, expansion of leading players
• A qualitative analysis, highlighting the five competitive forces prevalent in digital payment market, including threats for new entrants, bargaining power of suppliers, bargaining power of customers, threats of substitution and rivalry among existing competitors.
• A discussion on affiliated global digital payment market trends, key drivers and challenges, under a SWOT framework, which are likely to impact the industry’s evolution, along with a Harvey ball analysis, highlighting the relative effect of each SWOT parameter on the overall digital payment market.
• A value chain analysis featuring a discussion on various stakeholders involved in the development of the digital payment market, from suppliers to end-users.
• A detailed estimate of the current market size and the future growth potential of the digital payment market over the next decade. Based on multiple parameters we have provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunity within the digital payment market. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s growth.
• Detailed projections of the current and future market across various types of solution such as application program interface, payment gateway, payment processing, payment security & fraud management, transection risk management, and others.
• Detailed projections of the current and future market across various types of payment modes such as bank cards, digital currencies, digital wallets, net banking, point of sales, and others.
• Detailed projections of the current and future market across various types of transaction such as cross border and domestic.
• Detailed projections of the current and future market across various types of verticals such as BFSI, healthcare, IT & telecom, media & entertainment, retail and e-commerce, transportation & logistics, and others.
• Detailed projections of the current and future digital payment market across various geographical regions, such as North America (US, Canada, Mexico and other North American countries), Europe (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, UK and other European countries), Asia (China, India, Japan, Singapore, South Korea and other Asian countries), Middle East and North Africa (Egypt, Iran, Iraq, Israel, Kuwait, Saudi Arabia, UAE and other MENA countries), Latin America (Brazil, Chile, Colombia, Venezuela and other Latin American countries) and rest of the world (Australia, New Zealand and other countries).

Author: Ronit Sharma and Neha Kashyap

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