Digital Payment Market size to grow by USD 160.94 billion from 2022 to 2027, Market is fragmented due to the presence of companies like ACI Worldwide Inc., Adyen NV and Apple Inc., and more
NEW YORK, March 18, 2024 /PRNewswire/ -- The Digital Payment Market size is estimated to grow by USD 160.94 billion, accelerating at a CAGR of 21.23%, during the forecast period. The digital payment market is fragmented owing to the presence of many global and regional companies. A few prominent companies that offer digital payment market are ACI Worldwide Inc., Adyen NV, Apple Inc., Aurus Inc., Due Inc., Fidelity National Information Services Inc., Fiserv Inc., Global Payments Inc., Intuit Inc., JPMorgan Chase and Co., Mastercard Inc., PayPal Holdings Inc., Paysafe Ltd., PayTrace Inc., Stripe Inc., VeriFone Inc., Visa Inc., WEX Inc., Worldline SA, Fattmerchant Inc., and Square Inc.
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Square Inc.: The company offers digital payment account to account payment services which move money directly from payers bank account to a payees bank account without the need for intermediaries such as credit or debit cards.
Regional Analysis:
By Geography, the market is classified as APAC, North America, Europe, South America, and Middle East and Africa. APAC will have the largest share of the market.
During the forecast period, the Asia-Pacific (APAC) region is anticipated to account for a substantial 34% of the global market's expansion. This growth can be attributed to the rapid urbanization in the region and the increasing adoption of Internet services. Additionally, the growing popularity of digital payment methods like e-wallets and payment gateways is a key driver behind the regional market's expansion.
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Drivers, Trends & Challenges:
- Impactful driver- Rising number of online transactions: The growth of the market is primarily driven by the advantages of digital payments. These payment methods have transformed the way individuals and businesses conduct transactions, offering a wide range of benefits that are reshaping financial interactions. Notably, convenience is a key advantage within the digital payments market.
- Key Trend - Growing emergence of mobile apps for shopping transactions
- Major Challenges - Privacy and security concerns challenge the market's growth.
Segmentation Overview
The market is segmented by end-user (large enterprises and SMEs), component (solutions and services), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
The large enterprises segment is expected to experience notable growth during the forecast period. The adoption of digital payments by these corporations is primarily fueled by their high transaction volume. Key players in this category include businesses in the banking, securities, finance, and insurance (BSFI) sectors, as well as those in information technology and manufacturing.
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Analyst Review
The Digital Payment Market has witnessed a significant transformation in recent years, driven by technological advancements and evolving consumer preferences. Near-Field Communication (NFC), Host Card Emulation (HCE), and Radio Frequency Identification (RFID) are at the forefront of this revolution, enabling seamless transactions through mobiles and wristbands, offering convenience and efficiency.
However, despite the remarkable progress, challenges such as restraint due to the lack of global standards for cross-border payments persist. Cross-border trade suffers from complex and inefficient processes, high transaction costs, and inconsistent user experiences, hampered further by compliance difficulties and limited financial inclusion.
To address these challenges, initiatives have been launched to establish a globally standardized framework for cross-border payments, aiming to promote international finance and economic growth while ensuring security and transparency. Efforts to rapidly decline the unbanked population, especially in rural and remote regions, require enhanced connectivity and digital literacy, supported by financial services tailored to local needs.
Private sector players, including digital payment vendors and financial technology services, play a pivotal role in driving financial inclusion initiatives and reducing cash reliance. By leveraging technology-driven tools and platforms, such as mobile wallets and online banking, they facilitate electronic transactions, including credit and debit card payments, peer-to-peer (P2P) transfers, and even cryptocurrency transactions.
In this dynamic ecosystem, security remains paramount, with cybersecurity threats posing significant risks. However, advancements in security measures, including multi-factor authentication and encryption, mitigate these concerns, ensuring the integrity of transactions and protecting valuable data.
The Digital Payment Market Ecosystem encompasses various stakeholders, from cards and rings to security solutions, all contributing to the expansion of digital payment adoption. With a focus on user-friendly experiences, universal standards, and compliance with government regulations and regional financial regulations, the industry strives to enhance customer support and reduce transaction fees, minimizing reliance on international intermediaries and currency exchange costs.
In conclusion, the digital payment market is poised for continued growth, driven by innovation and collaboration across industries. By embracing technology and prioritizing financial inclusion efforts, stakeholders can unlock new opportunities, foster economic development, and empower individuals worldwide.
Market Overview
The digital payment market is rapidly evolving, driven by innovations such as contactless payments, Near-Field Communication (NFC), and Host Card Emulation (HCE). Mobiles and wristbands equipped with NFC and RFID technology are revolutionizing how transactions are conducted. Despite advancements, challenges persist, including a lack of global standards for cross-border payments, hindering cross-border trade. However, digital payment providers are addressing these issues by offering convenient and secure solutions. With the increasing adoption of digital payments, the market is poised for significant growth. Restraints, such as security concerns, are being tackled through advancements in encryption and authentication methods. Overall, the digital payment landscape is dynamic, offering opportunities for both consumers and businesses.
Related Reports:
Secure Web Gateway Market: The secure web gateway market is estimated to grow at a CAGR of 21.52% between 2022 and 2027. The size of the market is forecast to increase by USD 11,710.84. million.
E-commerce Payment Market: The e-commerce payment market share is expected to increase by USD 376.45 billion from 2020 to 2025, at a CAGR of 26.41%.
TOC:
1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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SOURCE Technavio
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