The digital payment market is anticipated to grow at a CAGR of 18.5% over the forecast period. Numerous initiatives for promoting digitalization, increased manufacturing of smartphones, and the growing need for offering enhanced customer support at the point of sales terminal are the key factors driving the market growth.
The growth of the market is propelled by the growing number of e-commerce industries and developments in mobile payment technology. Increased use of mobile wallets for making payments and the development of secure and safe payment gateways have also led to the growth of the market.
The digital payment systems market has been segmented on the basis of solution, service, deployment, organization size, end use, and region. The solution segment has further been segmented into payment wallet, payment gateway, payment processing, payment security and fraud management, and point of sales solutions. Payment gateway is anticipated to emerge as the fastest-growing segment over the forecast period owing to the expansion of the e-commerce industry. The gateways provide a virtual terminal for online transactions and enable safe and secure transactions between the merchant and customer.
Based on service, the market has further been segmented into professional and managed services. The professional services segment is anticipated to dominate the market as it specializes in the delivery of critical decision support tools, software, and services. Business firms are increasingly adopting digital payment solutions due to the client-focused nature of the market.
The digital payment market has further been segmented based on deployment into on-premise and cloud. The cloud segment is expected to be the fastest-growing segment as it is cost-effective and enables the security of business applications. Based on organization size, the market has been sub-segmented into small and medium-sized enterprises and large enterprises. Large enterprises currently dominate the market as they can easily invest a large amount of money in the safe and secure payment methods for the ease of customers.
Digital payment finds applications in various sectors such as retail and e-commerce; Banking, Financial, and Insurance Services (BFSI); healthcare; telecom and information technology; and media & entertainment. Safe and secure digital transactions along with increased convenience of mobile wallets have led to the growth of the market across various verticals.
The North American region accounted for the largest share in the digital payment systems market owing to the presence of a large number of significant solution providers. Factors such as rapid technological advancements and development of the digital economy in the region are expected to drive the growth of the market over the forecast period.
However, the lack of common global standards and variations between the systems is a crucial factor limiting the growth of the digital payment solutions market. This has led to the limited ability of corporate treasury/enterprise systems and banks to seamlessly pass data between each other.
Key players in the digital payment solutions market include Aliant Payment Systems, Aurus Inc., Adyen N.V., Authorize.Net, Financial Software & Systems Pvt. Ltd., ACI Worldwide Inc., Dwolla, Inc., PayPal Holdings, Inc., Novatti Group Limited, Worldline, Total System Services, Inc., Wirecard AG, WEX Inc., PayU Group, Paysafe Holdings U.K. Limited, Global Payments Inc., and YapStone, Inc.
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