Global Digital Payments Market By Overview
Digital Payments Market Size was valued at US$ 111.9 billion in 2024 and is projected to grow at a CAGR of 20.0% to reach US$ 590.7 billion by 2034.
Digital payments, like any payments, are made using digital instruments. Digital payment allows an individual to make electronic transactions. This can include purchasing items online with a smartphone or using a computer to purchase something at a store. Digital payment platforms are expanding rapidly in industries where businesses offer goods or services to consumers. Adoption of these platforms is increasing because they are a much more secure and direct method of completing transactions.
Since digital payments make it easy and quick for consumers to complete transactions, their high level of convenience is anticipated to increase their popularity. They also need to do away with the necessity for actual currency or checks, which may be difficult and time-consuming to manage. For several reasons, including increasing financial inclusion, reducing the need for currency, improving transparency, and fostering economic growth, governments worldwide have been supporting and encouraging digital payments.
Growth in the number of customer-centric applications, increased focus on omnichannel payment mode, and expansion of the E-commerce industry globally are the major factors driving growth of the global digital payments market. In addition, the robust proliferation of the internet and increasing investments by internet service providers have upsurged the growth of the target market. However, cyber-attack cases are likely to hamper the growth of the global market. Nevertheless, the contactless payment method is an alternative payment channel, which is creating a major trend for the development of the worldwide market. It uses short-range wireless technologies, such as near-field communication (NFC) or radio frequency identification (RFID), to securely complete payments between a contactless card and a contactless-enabled PoS terminal.
Global Digital Payments Market By Dynamics
Key Drivers of Target Market:
Escalated usage of internet services along with high penetration of smartphones
- The market for digital payments has grown faster than expected owing to the extraordinary rise in internet connectivity and the accessibility of user-friendly smartphone devices. More individuals are embracing digital transactions due to easier access to the internet and its supporting technology. Convenience is improved as a result, eventually leading to market expansion. Further propelling the digital payments sector towards new heights has been the existence of businesses on the internet, the unmatched reaction of customers to it, and the part played by digital payments in these transactions.
Increased promotion of digital payments by governments around the world
- Governments worldwide desire digital payment promotion. A number of international programs are pushing for the use of digital payments by the public, corporate, and financial sectors to provide effective emergency responses. Such activities greatly aid the market's growth.
Restrains:
An increase in cyber-attacks around the world
- One major obstacle to the market growth for digital payment systems is cyber-attacks. For more than ten years, the payment sector has been battling the most serious problem: cyber-attacks. The growing use of technology in the digital payments industry is raising concerns about cyber security, including fraud and cybercrime.
Opportunities:
- With the ability to open and manage accounts using a mobile phone even in remote regions, digital payments are critical in increasing the number of individuals with bank accounts. The introduction of digital wallets is a major factor in encouraging financial inclusion. Consequently, the number of people without bank accounts is decreasing globally, which is fostering an environment conducive to the expansion of digital payment businesses.
Global Digital Payments Market By Segmentation
The market is segmented based on mode of payment, end-user industry, and region.
Mode of Payment Insights
- Point of Sale: The most significant revenue share was attributable to the point of sale. Retail establishments use point-of-sale systems to execute online purchases. Benefits from these technologies include a quicker checkout process, a personalized experience, and several payment options.
- Contact Payment: Contact payment, which involves physically swiping debit or credit cards, is becoming less common as contactless payment methods become more widely available.
- Contactless Payment: The ease of use and speed of contactless payment are making it very popular. NFC technology makes tap-and-pay using cards or mobile wallets possible.
- Bank Cards: While bank cards, such as debit and credit cards, are still commonly used for point-of-sale transactions, mobile wallets, with their enhanced integration and possible incentives systems, may pose a threat to bank card dominance.
- Digital Wallets: Many people use digital wallets to make digital payments. They save credit card information and provide a simple, safe method to conduct transactions online or via mobile devices. Moreover, keeping customers' debit and credit cards offers a quick and easy digital payment method.
- Digital Currencies: While legal frameworks and volatility are still important considerations, crypto currencies like Bitcoin are becoming increasingly popular for use in online transactions.
- Net Banking: Over the projected period, net banking is anticipated to grow at a notable rate. One of the main reasons propelling the market expansion is its advantages, which include enhanced time management, activity tracking, and simplicity of banking. As a result, the number of people using net banking is rising in many countries worldwide.
End-user Industry Insights
- Retail: The retail segment is expected to grow at the fastest rate. One of the main reasons for its rise is consumers' increasing adoption of mobile-based payment solutions for retail payments.
- Banking and Financial Service: Regarding revenue share, the BFSI category headed the market. Banks are encouraged to implement digital payment solutions by the growing demand for digital remittance for local and international transactions.
- Telecommunication: Mobile network operators are becoming increasingly significant with the provision of mobile wallets and the incorporation of digital payments into their service offerings.
- Government: Through various channels and modes, digital payments have grown significantly recently and have been a major priority area for government enterprises. The government has launched a few programs to build a payments environment that smoothly provides modern payment instruments
- Transportation: Cities worldwide are examining digital payment acceptance for transit as a possible growth channel. Cash turnover is unfavorable from an economic perspective since it takes time and incurs particular expenses for all types of businesses. Conversely, electronic payments encourage financial inclusion and increase economic growth.
- Other End-user Industries (Media and Entertainment): Digital payments, which are becoming increasingly common in industries like media and entertainment, healthcare, education, and hospitality, fall under the "Others" category. These payments provide increased efficiency and convenience for financial transactions.
Regional Insights
- The North American market is estimated to witness a significantly high revenue share over the forecast period, owing to the expansion of the mobile commerce industry in North America and a well-developed digital economy. In addition, the implementation of digital payment solutions by the organizations in this region leads to the rising trend of mobile app purchases, mobile Person-to-Person (P2P), and mobile bill payments.
- Asia Pacific market is estimated to witness fastest revenue share due to rapid growth in the number of mobile subscribers and feasible digital solutions provided by banks and payment agents. The nations in the area have started making major efforts to develop the payments sector. It is expected that China and India would develop a bigger market. The primary driver of the expansion of digital payments in China is the country's extensive use of bank accounts and cell phones.
- Europe market is expanding steadily, and its regional expansion can be credited to European banks' efforts to start a European payment initiative, which aims to provide businesses and customers with a single, unified payment option.
- The Latin America market is an emerging region and is observing growth due to rising internet availability and the widespread use of mobile phones; the market is expanding. Financial inclusion and security issues are still problems.
- The Middle East and Africa market is in its developmental stages, with substantial room to expand. Mobile money solutions are becoming increasingly popular, particularly in areas without banks.
Digital Payments Market Report Scope:
|
Attribute |
Details |
|
Market Size 2024 |
US$ 111.9 billion |
|
Projected Market Size 2034 |
US$ 590.7 billion |
|
CAGR Growth Rate |
20.0% |
|
Base year for estimation |
2023 |
|
Forecast period |
2024 – 2034 |
|
Market representation |
Revenue in USD Billion & CAGR from 2024 to 2034 |
|
Market Segmentation |
By Mode of Payment - Point of Sale (Contact Payment, Contactless Payment, and Bank Cards) and Digital Wallets (Digital Currencies and Net Banking) By End-user Industry - Retail, Banking and Financial Service, Telecommunication, Government, Transportation, and Other |
|
Regional scope |
North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa |
|
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered in the Report:
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the Digital Payments Market report based on mode of payment, end-user industry, and region:
Segmentation:
By Mode of Payment:
- Point of Sale
- Contact Payment
- Contactless Payment
- Bank Cards
- Digital Wallets
- Digital Currencies
- Net Banking
By End-user Industry:
- Retail
- Banking and Financial Service
- Telecommunication
- Government
- Transportation
- Other End-user Industries (Media and Entertainment)
By Region:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
Global Digital Payments Market By Key Players
The key players operating the Digital Payments Market include PayPal Holdings Inc., Visa Inc., MasterCard Incorporated (MasterCard), Amazon Inc., Alphabet Inc., Apple Inc., CCAvenue (Avenues India Pvt. Ltd), Paytm Mobile Solutions Private Limited, Stripe Inc., and Alipay.com Co. Ltd.
Global Digital Payments Market By Key Issues Addressed
- In February 2023, HDFC Bank and Crunchfish introduced OfflinePay, an RBI Regulatory Sandbox Programme initiative to investigate offline digital payments for consumers and businesses.
- In December 2023, Visa Inc. announced that it had reached a final deal to acquire a controlling share in Prosa, a well-known payment processor in Mexico, to hasten the adoption of safe and creative digital payments in that country. As a result of this partnership, Prosa will continue to operate independently and with its current technological infrastructure. At the same time, Visa will add cutting-edge digital solutions to expand Prosa's product line.
Global Digital Payments Market By Company Profile
- PayPal Holdings Inc.*
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Performance
- Business Strategies
- Visa Inc.
- MasterCard Incorporated (MasterCard)
- Amazon Inc.
- Alphabet Inc.
- Apple Inc.
- CCAvenue (Avenues India Pvt. Ltd)
- Paytm Mobile Solutions Private Limited
- Stripe Inc.
- Alipay.com Co. Ltd.
“*” marked represents similar segmentation in other categories in the respective section.
Global Digital Payments Market By Table of Contents
- Research Objective and Assumption
- Preface
- Research Objectives
- Assumptions
- Abbreviations
- Market Preview
- Report Description
- Market Definition and Scope
- Executive Summary
- Market Snippet, By Mode of Payment
- Market Snippet, By End-user Industry
- Market Snippet, By Region
- Opportunity Map Analysis
- Report Description
- Market Dynamics, Regulations, and Trends Analysis
- Market Dynamics
- Drivers
- Restraints
- Market Opportunities
- Market Trends
- DR Impact Analysis
- PEST Analysis
- Porter’s Five Forces Analysis
- Opportunity Orbit
- Market Investment Feasibility Index
- Macroeconomic Factor Analysis
- Market Dynamics
- Global Digital Payments Market, By Mode of Payment, 2024 – 2034, (US$ Bn)
- Overview
- Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024 – 2034
- Y-o-Y Growth Analysis (%), 2024 – 2034
- Segment Trends
- Point of Sale
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Contact Payment
- Contactless Payment
- Bank Cards
- Digital Wallets
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Digital Currencies
- Net Banking
- Overview
- Market Segmentation, By End-user Industry, 2024 – 2034, (US$ Bn)
- Overview
- Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024 – 2034
- Y-o-Y Growth Analysis (%), 2024 – 2034
- Segment Trends
- Retail
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Banking and Financial Service
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Telecommunication
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Government
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Transportation
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Others (Media and Entertainment)
- Overview
- Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), 2024 – 2034
- Overview
- Global Market, By Region, 2024 – 2034, (US$ Bn)
- Overview
- Market Value and Forecast (US$ Bn), and Share Analysis (%), 2024 – 2034
- Y-o-Y Growth Analysis (%), 2024 – 2034
- Regional Trends
- North America
- Market Size and Forecast (US$ Bn), By Mode of Payment, 2024 – 2034
- Market Size and Forecast (US$ Bn), By End-user Industry, 2024 – 2034
- Market Size and Forecast (US$ Bn), By Country, 2024 – 2034
- U.S.
- Canada
- Europe
- Market Size and Forecast (US$ Bn), By Mode of Payment, 2024 – 2034
- Market Size and Forecast (US$ Bn), By End-user Industry, 2024 – 2034
- Market Size and Forecast (US$ Bn), By Country, 2024 – 2034
- Germany
- UK
- France
- Russia
- Italy
- Rest of Europe
- Asia Pacific
- Market Size and Forecast (US$ Bn), By Mode of Payment, 2024 – 2034
- Market Size and Forecast (US$ Bn), By End-user Industry, 2024 – 2034
- Market Size and Forecast (US$ Bn), By Country, 2024 – 2034
- China
- India
- Japan
- South Korea
- Rest of Asia Pacific
- Latin America
- Market Size and Forecast (US$ Bn), By Mode of Payment, 2024 – 2034
- Market Size and Forecast (US$ Bn), By End-user Industry, 2024 – 2034
- Market Size and Forecast (US$ Bn), By Country, 2024 – 2034
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- Market Size and Forecast (US$ Bn), By Mode of Payment, 2024 – 2034
- Market Size and Forecast (US$ Bn), By End-user Industry, 2024 – 2034
- Market Size and Forecast (US$ Bn), By Country, 2024 – 2034
- GCC
- Israel
- South Africa
- Rest of Middle East
- Overview
- Competitive Landscape
- Heat Map Analysis
- Market Presence and Specificity Analysis
- Company Profiles
-
- PayPal Holdings, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Visa, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- MasterCard Incorporated
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Amazon.com, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Alphabet, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Apple, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- CCAvenue (Avenues India Pvt. Ltd)
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Paytm Mobile Solutions Private Limited
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Stripe, Inc.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- Alipay.com Co. Ltd.
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Overview
- PayPal Holdings, Inc.
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- Section
- Research Methodology
- About Us
- Contact
FAQs
The Digital Payments Market is segmented into mode of payment, end-user industry, and region.
Growing demand for cashless transactions, emphasis on convenience and security, and the adoption of digital payment solutions for online and in-person transactions drive the growth of the digital payments market globally.
Challenges include potential cybersecurity risks, regulatory complexities, and the need for widespread digital literacy and acceptance, posing global restraints in the digital payments market.
By region, the target market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America market is estimated to witness a significantly high revenue share over the forecast period.
The key players operating the target market includes, PayPal Holdings Inc., Visa Inc., MasterCard Incorporated (MasterCard), Amazon.com Inc., Alphabet Inc., Apple Inc., CCAvenue (Avenues India Pvt. Ltd), Paytm Mobile Solutions Private Limited, Stripe Inc., and Alipay.com Co. Ltd.