The global digital payment market size was valued at USD 68.61 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 20.5% from 2022 to 2030. The worldwide increase in customer preference for real-time payments is one of the major factors driving the market growth. According to statistics provided by McKinsey & Company, India registered 25.6 billion real-time transactions in 2020, witnessing a 70% increase from 2019. The increasing adoption of mobile wallets can be attributed to this significant rise in the use of real-time payments in the country. E-commerceservice providers are making efforts to strengthen their competitive positions by moving from traditional credit card and consumer finance solutions toward customer engagement solutions that leverage digital payments.
E-commerce companies are also making efforts to deploy their point-of-sale systems to expand their offerings in the digital payment space. For instance, retail giants, such as Shopify and Amazon, are developing point-of-sale systems capable of handling online and in-store transactions. These developments are encouraging banks to improve their digital payment services to preserve their market positions. Government bodies across the world are increasing the limit of contactless payment cards, creating new growth opportunities for market.
For instance, in October 2021, the Treasury and Financial Conduct Authority (FCA) increased the contactless payment limit from USD 50.92 to USD 113.16 in the U.K. This limit was previously increased by FCA from USD 33.95 to USD 50.92 in April 2020 as a COVID-19 measure to reduce contact between payment terminals and shoppers. The growing adoption of 5G network worldwide is also expected to drive market growth. Strong network connectivity enables people to seamlessly make payments and buy products online using mobile devices.
Moreover, enhanced 5G connectivity also helps digital payment service providers implement fraud prevention measures more effectively. According to the GSM Association, 5G network is expected to cover nearly one-third of the world’s population by 2025. Transportation and logistics companies are entering into partnerships with digital payment solution providers to leverage the technology for maintaining social distancing amid the COVID-19 pandemic. For instance, in April 2021, Eurowag, a commercial transport solution provider, invested in Drivitty, a mobile service integrator. Through this partnership, the former company aims to provide vehicle fleet management to its customers.
COVID-19 Impact Analysis
The COVID-19 pandemic has positively impacted the market, leading to a steep rise in online sales and the increasing use of online payment solutions. Customers across the world have shifted from offline shopping to online shopping during the pandemic. According to Digital Commerce 360, a media organization, online sales in the U.S. valued at nearly USD 204.62 billion in Q3 2021, an increase of 6.8% compared to Q3 2020. Lingering customer anxiety over being in crowded places amid the pandemic is driving demand for online retailing.
The payment processing segment dominated the market in 2021 and accounted for more than 25.5% share of the global revenue. The increasing preference for online shopping across the globe is prompting retailers to adopt payment processing solutions to provide customers with seamless checkout experiences. Players providing payment processing solutions focus on mergers and acquisitions and partnerships to strengthen their market presence. For instance, in October 2021, PXP Financial Inc., a payment processing service provider, announced its partnership with Shift4, a payment processing solution provider.
Through this partnership, the former company expanded its capabilities in the U.S. market. The payment gateway segment is anticipated to grow at the fastest CAGR over the forecast period. Payment gateway solutions are in demand among merchants as they enable convenient payment. Furthermore, payment gateways are used for in-store payments to allow customers to make payments via smartphones and the internet. Thus, the growing adoption of payment gateways among the in-store retail shops drive the segment growth.
Mode Of Payment Insights
The point of sales segment dominated the market in 2021 and accounted for more than 52% share of the global revenue. Point of sale systems are used by retail stores for processing transactions. These systems offer benefits, such as fast checkout options, customized customer experience, and multiple payment options. Retailers worldwide adopt cloud-based points of sales systems to increase their efficiency and improve service effectiveness.
The net banking segment is expected to register a significant growth rate over the forecast period. The benefits offered by net banking, including improved time efficiency, ease of banking, and activity tracking, are among the major factors driving the segment growth. As a result, various countries across the world are witnessing an increase in net banking users. According to the statistics provided by eMarketer, approximately 80% of U.S. internet users accessed their bank accounts digitally in 2020.
The on-premise segment dominated the market in 2021 and accounted for more than 65.0% share of the global revenue. The on-premise deployment of digital payment provides organizations with complete control over applications and systems, which can be easily managed by the organization’s IT staff. Moreover, the increased frequency of financial frauds amid the COVID-19 pandemic is also one of the major factors driving the demand for on-premise solutions among organizations. According to the statistics provided by Merchant Savvy, a merchant service provider, global payment fraud increased from USD 9.84 billion in 2011 to USD 32.39 billion in 2020; it is projected to reach USD 40.62 billion by 2027, a 25% increase from 2020.
The cloud segment is anticipated to grow at the highest CAGR over the forecast period. The continued rollout of smart city projects, coupled with the rising number of unmanned retail stores, is one of the major factors driving the growth of the segment. Furthermore, efforts taken by payment companies to integrate artificial intelligence features in their payment system are expected to accentuate the segment growth. For instance, in October 2021, Mastercard, a financial service provider, and Previse, an AI-powered payments company, announced the integration of Mastercard Cross-Border Services, a payments platform, into Previse’s InstantPay platform. This collaboration will help the companies to pay their suppliers instantly across the globe.
Enterprise Size Insights
The large enterprise size segment dominated the market in 2021 and accounted for more than 59.0% share of the global revenue. Large retail stores increasingly demand digital payment solutions to enable their customers to conduct payments by maintaining social distancing. Digital payment methods, such as smart banking cards, point of sales solutions, and e-wallets, are used by retailers to reduce checkout time. At the same time, retailers are also focusing on providing innovative payment solutions for customers. For instance, in October 2020, Klarna a financial service provider, announced its partnership with Afterpay, a payment solution provider, to provide Buy Now Pay Later services for online customers.
The small & medium enterprises segment is anticipated to grow at the fastest CAGR over the forecast period. Small & medium enterprises are shifting from paper-based invoicing to digital invoicing as paper-based billing systems are expensive, prone to errors, and inefficient. Payment solution providers are focusing on partnerships with small & medium enterprises to support their digitalization journeys. For instance, in October 2019, Armatic, a solution provider for invoicing automation, was acquired by BlueSnap, a payment technology company. Through this acquisition, BlueSnap enhanced its digital payment solutions.
The Banking, Financial Services and Insurance (BFSI) segment dominated the market in 2021 and accounted for more than 23.0% share of the global revenue. The rising demand for digital remittance for cross-border and domestic transactions is encouraging banks to adopt digital payment solutions. Moreover, banks are also enhancing their offerings to compete with digital payment solutions providers, such as Google, Amazon, and Facebook. For instance, in June 2019, the Bank of America introduced a digital debit card to offer improved convenience to its clients.
The retail & e-commerce segment is anticipated to register the fastest growth over the forecast period. The growing use of mobile-based payment solutions among customers for retail payments is one of the major factors driving the segment growth. At the same time, the rising number of unmanned retail stores worldwide is also driving the market growth. According to a study conducted by Televisory, a financial service provider, China’s unmanned retail industry reached USD 503.25 million in 2020.
North America dominated the global market in 2021 and accounted for the largest revenue share of over 34.0%. The regional market benefits from factors, such as the increasing deployment of and technology enhancements in smart parking meters. For instance, in July 2020, ParkMobile, a parking solution provider, announced its partnership with EasyPark, a facilities service provider. Through this partnership, the former company provided contactless payments facility throughout Vancouver city. Moreover, the growing number of unmanned stores in the U.S. is creating the demand for digital payment solutions.
For instance, in November 2019, Ahold Delhaize, a Netherlands-based supermarket, announced the opening of its cashier-less store in the U.S. Europe is expected to witness significant growth over the forecast period. Banks in Europe are making efforts to launch a European payment initiative aimed at creating a unified payments solution for merchants and consumers across the region. Such initiatives are expected to create new growth opportunities for the market over the forecast period. Moreover, the digital campaign launched by the Italian government to increase electronic payments in the country is also propelling the regional market growth.
Key Companies & Market Share Insights
The competitive landscape of the market is highly fragmented. Market players are focused on strategies, such as partnerships, joint ventures, product innovation, research & development, and geographical expansion to strengthen their market positions. Merchants adopt on-premise digital payment solutions due to security-related benefits, such as improved security levels and thereby increased level of customer satisfaction. Market players are focused on enhancing their product offerings to better cater to the changing needs of users and stay competitive.
For instance, in October 2020, Aliant Payments announced that the CryptoBucks cryptocurrency payment mobile app powered by Aliant Payments has added XRP an open-source independent digital asset to its platform. XPR would be available for both Android and iOS mobile apps. With the addition of XRP, the CryptoBucks app would allow merchants to accept Bitcoin Cash, Bitcoin, Ethereum, and Litecoin payments both online and in-store. Some of the prominent players in the global digital payment market are:
Financial Software & Systems Pvt. Ltd.
PayPal Holdings Inc.
Novatti Group Pty Ltd.(Video) Digital Pathology Market: Size, Share & Trends Forecast Report 2022 - 2030
ACI Worldwide, Inc.
Global Payments Inc.
Total System Services, Inc.
Digital Payment Market Report Scope
Market size value in 2022
USD 81.03 billion
Revenue forecast in 2030
USD 361.30 billion
CAGR of 20.5% from 2022 to 2030
Base year of estimation
2017 - 2020
2022 - 2030
Revenue in USD billion and CAGR from 2022 to 2030
Revenue forecast, company market share, competitive landscape, growth factors, and trends
Solution, mode of payment, deployment, enterprise size, end use, region
North America; Europe; Asia Pacific; Latin America; MEA
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U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil
Key companies profiled
Aliant Payments; Aurus Inc.; Adyen, Financial Software & Systems Pvt. Ltd.; PayPal Holdings Inc.; Novatti Group Pty Ltd.; ACI Worldwide, Inc.; Global Payments Inc.; Wirecard; Authorize.Net; Total System Services, Inc.
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Segments Covered in the Report
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global digital payment market report based on solution, mode of payment, deployment, enterprise size, deployment, end use, and region:
Solution Outlook (Revenue, USD Billion, 2017 - 2030)
Application Program Interface
Payment Security & Fraud Management
Transaction Risk Management
Mode of Payment Outlook (Revenue, USD Billion, 2017 - 2030)
Point of Sales
Deployment Outlook (Revenue, USD Billion, 2017 - 2030)
Enterprise size Outlook (Revenue, USD Billion, 2017 - 2030)(Video) Asparaginase Market Size, Share, Trends and Growth Insights Report 2022-2030
Small & Medium Enterprises
End-use Outlook (Revenue, USD Billion, 2017 - 2030)
IT & Telecom
Media & Entertainment
Retail & E-commerce
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
Middle East & Africa
Frequently Asked Questions About This Report
How big is the digital payment market?
b. The global digital payment market size was estimated at USD 68.61 billion in 2021 and is expected to reach USD 81.03 billion in 2022.
What is the digital payment market growth?
b. The global digital payment market is expected to grow at a compound annual growth rate of 20.5% from 2022 to 2030 to reach USD 361.30 billion by 2030.
Which segment accounted for the largest digital payment market share?
b. North America dominated the digital payment market with a share of 34.90% in 2021. This is attributable to the existence of a large number of digital payment solution providers in the region. The expansion of the mobile commerce industry, coupled with the developed digital economy in North America, are additional factors driving the market.
Who are the key players in the digital payment market?
b. Some key players operating in the digital payment market include Total System Services, Inc.; Wirecard AG; Novetti Group Limited; PayPal Holdings Inc.; ACI Worldwide Inc.; and Adyen N.V.
What are the factors driving the digital payment market?
b. Key factors that are driving the digital payment market growth include increasing government initiatives for the promotion of digital payments and the growing penetration of smartphones.
The global mobile payment market size was USD 1.54 trillion in 2020. The market is projected to grow from USD 1.97 trillion in 2021 to USD 11.83 trillion in 2028 at a CAGR of 29.1% in the 2021-2028 period.
And by 2025, digital wallets are projected to account for $10 trillion in global transaction volume, including in-store and e-commerce transactions. Digital payments are becoming more and more embedded in everyday life.
Which country has most number of digital payments? India is the leading country with 25.5 billion real-time payment transactions.
The report forecasts the digital payment market to more than triple to $10 trillion in the next five years, with non-cash contributions constituting nearly 65% of all payments, wherein 2 out of 3 transactions will be digital in the next five years as opposed to 2 out of 5 transactions today.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Digital Payment Market was worth USD 86.5 billion in the year 2021. It is estimated to grow at a CAGR of 12.1%, earning revenue of around USD 194.2 billion by the end of 2028.
19, 2022 /PRNewswire/ -- The global digital payment market is estimated to reach USD 361.30 billion by 2030 and the expected expansion is at a CAGR of 20.5% in the forecast period, according to a new report by Grand View Research, Inc. In 2021, the digital payment market was valued at USD 88.1 billion.
The payments sector is poised for a quick return to healthy 6 to 7 percent growth rates, with fresh opportunities for incumbents and new entrants alike to participate in emerging adjacent revenue streams, further brightening the future picture.
A study from Jupiter Research found that the value of global e-commerce payment transactions will exceed $7.5 trillion by 2026, from $4.9 trillion in 2021 — a growth rate of 55% over five years. Fueling this growth is a wave of innovation in digital payments to meet evolving consumer preferences.
Future digital wallets will not only store and allow for payment transactions but will also provide on-demand and seamless access to these alternative digital assets. Better yet, apart from storing these funds, they will offer the ability to complete financial transactions using these varying payment sources.”
In Sweden, technology is close to making cash a thing of the past. All aboard with the cashless society? Sweden has been at the forefront of banking innovation for a long time. The country's first automatic cash machine was inaugurated in July 1967, only a week after the world's very first one was opened in London.
Taking things online. The mid-1990s saw the introduction of online payments. The Stanford Federal Credit Union is credited as the first organization to offer their clients an online payment system, having first done so in 1994.
Close to cashless
Based on this combination of factors, Norway has the lowest cash reliant index score (1.54), followed by Finland (1.87), New Zealand (2.06), Hong Kong and Sweden (2.10), Denmark (2.15), Switzerland (2.21), the UK (2.22), Singapore (2.32) and the Netherlands (2.46).
The global digital payment market size accounted for USD 89.5 billion in 2021 and is expected to hit around USD 374.9 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 17.25% from 2022 to 2030. Key Takeaways: By solution, the payment processing segment held 25.8% market share in 2021.
According to the 2022 Diary of Consumer Payment Choice, only 19% of in-person payments in 2021 were made using cash. In contrast, credit cards accounted for 32% of all in-person payments, whereas debit cards were dominant with 44%.
The market size of cross-border B2B payments was $1,000 billion in 2021 and it is expected to reach $2,515 billion by 2030 which means that in 8 years, a growth rate of 10.8% is anticipated for the B2B payments market according to the report of Straits Research.
During 2021, 23.1 million consumers either used no notes or coins, or used them only about once a month. That was up sharply on the 13.7 million consumers the previous year who did not use cash. That number has grown rapidly: in 2018 it was 5.4 million people; in 2016 it was 2.9 million.