Digital Payment Market Size, Share & Trends Report

Digital Payment Market Size, Share & Trends Analysis Report By Solution, By Mode of Payment, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Nov, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-021-7
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 150

Industry Insights

The global digital payment market size was valued at USD 43.5 billion in 2018 and is expected to register a CAGR of 17.6% from 2019 to 2025. Increased use of smartphones, coupled with high internet penetration, is expected to propel the market over the forecast period. Easy accessibility of digital payment mobile applications is further expected to fuel market growth. Moreover, numerous governments across the world are taking initiatives to promote digital payments. For instance, the Indian government launched the Digital India initiative, which focuses on promoting digital payment methods and cashless transactions in the country.

Proliferation of global digitalization has had a significant impact on the digital payment services market. The internet enables merchants to offer their services in the digital payment services market space. The increasing need to provide enhanced customer support at the Point of Sales (POS) terminal is expected to drive the digital payment systems market over the next few years. Numerous developments in mobile payment technology, increasing number of e-commerce industries, and growing use of mobile wallets for making transactions is further contributing to market growth.

U.S. digital payment Market

The development of safe and secure payment gateways is expected to drive market growth. The market will also be driven by innovation in payment technology using blockchain, the Internet of Things (IoT), Artificial Intelligence (AI), and real-time payments. Innovations in security technologies such as tokenization of card details for eliminating fraud is expected to create growth opportunities in the coming years.

Digital payment solutions are considered as a safer and more reliable mode of payment than traditional methods as they eliminate the risk of theft and mitigate losses. The digital payment solutions market is expected to witness significant growth over the forecast period as digital payment solutions offer numerous benefits over traditional payment methods, such as ease of accessibility and convenience to users. The demand for these solutions is expected to grow over the forecast period owing to increasing focus on omni-channel payment mode and increase in the number of customer-centric payment applications.

Digital payment features agile, real-time, and personalized transaction services. It involves the usage of blockchain, mobile wallets, and Application Program Interface (API) technologies. These advanced payment technologies help enhance customer experience. However, increase in cybercrimes and financial frauds is expected to adversely affect the digital payment solutions market over the forecast period.

Solution Insights

The payment processing segment dominated the market in 2018, owing to rising initiatives for the promotion of online and digital transactions. These solutions are widely adopted in end-use industries as they help reduce the time required for payment processing and also minimize administration cost. Moreover, these solutions help streamline transactions and reduce the time required for completing the transaction. Increasing adoption of Europay, MasterCard, and Visa (EMV) cards across the globe is expected to contribute to segment growth.

The payment gateway segment is expected to register the highest CAGR over the forecast period. Various factors such as emergence of cash pooling, token system, and cashless transactions are expected to drive the segment. A gateway solution enables organizations to collect money through the bank preferred by the user without compromising sensitive data. Moreover, these gateways utilize industry-standard encryption, which effectively protects consumer and merchant data from fraud.

Mode of Payment Insights

Based on the mode of payment, the market has been segmented into bank cards, digital currencies, digital wallets, net banking, Point of Sales (POS), and others. The POS segment dominated the market in 2018, owing to benefits of high efficiency, ease of use, and increased accuracy. Point of sales terminals readily accept various transactions through contactless payment, EMV chip cards, and mobile wallets such as Samsung Pay, Android Pay, and Apple Pay. The point of sales terminals streamlines the accounting process, which makes it easy for merchants to keep a record of transactions.

The digital wallets segment is expected to register the highest CAGR over the forecast period. The emergence of online purchases and e-commerce is expected to propel the use of digital wallets over the forecast period. Digital wallets allow users to store various bank account numbers and credit card details in a secure environment. It also eliminates the need to enter details of account information during money transactions. This, in turn, is expected to fuel segment growth.

Deployment Insights

Based on deployment, the digital payment market has been segmented into cloud deployment and on-premise deployment. The on-premise deployment segment dominated the market in 2018, owing to easy customization of software as per a client’s business processes. Also, on-premise software is widely adopted as it does not require an internet connection. This, in turn, is expected to contribute to segment growth.

Cloud deployment is expected to register the highest growth over the forecast period owing to its provision of centralized configuration for digital transactions. By deploying solutions in the cloud, vendors can reduce their capital expenses and optimize their operating expenses. Organizations opt for this platform as it is hosted on the vendor’s server and can be accessed through a web browser. This feature eliminates the need to regularly upgrade the cloud-based business software system.

Enterprise Size Insights

Based on enterprise size, the market has been segmented into large enterprises and small and medium enterprises (SMEs). Large enterprises are widely adopting digital payment solutions as they reduces the time required for payment execution, improve visibility in administration, and improve customer experience. These solutions allow large enterprises to open up their business to new markets, both domestic and international, which were earlier inaccessible due to high prevalence of cash transactions. This, in turn, is expected to propel the large enterprises segment over the forecast period.

The small and medium enterprise segment is anticipated to witness significant growth over the forecast period owing to increase in the number of start-ups across the globe. Growing government initiatives through various digital SME campaigns across the globe is expected to drive the segment. For instance, in May 2017, the Info-communications Media Development Authority (IMDA) of Singapore launched the SMEs Go Digital program to increase SMEs’ access to new technologies. This, in turn, is anticipated to create growth opportunities for segment growth over the forecast period.

End-use Insights

Based on end use, the market has been segmented into BFSI, healthcare, IT and telecom, media and entertainment, retail and e-commerce, transportation, and others. Electronic payment solutions are widely adopted in the BFSI industry, as they offer secure money transactions. Increasing digitalization of banks and financial institutions is further expected to propel segment growth over the next few years. Various trends in digital banking, such as mobile banking, personal finance management, and digital wallet, are further contributing to segment growth.

Europe digital payment Market

The retail and e-commerce segment is expected to emerge as the fastest-growing end-use segment over the forecast period. Mobile wallet application enables the retail merchant to simplify the purchasing process for the customer. It further saves customer’s time at checkout and eliminates the hassle of plastic payment cards. The wide availability of smartphones, coupled with increasing usage of mobile wallet apps, is also contributing to segment market growth.

Regional Insights

North America dominated the market in 2018, with market size of USD 15.8 billion. The growth of the market can be attributed to existence of a large number of digital payment solution providers in the region. The expansion of the mobile commerce industry, coupled with developed digital economy in North America, are additional factors driving the market. In Canada, various factors such as reliable broadband and network infrastructure, customer willingness and preference for cashless payments and banking economy are widely contributing to the country’s higher rate of cashless transactions.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The proliferation of digitalization, coupled with government initiatives to use digital payments in developing countries, are propelling the market. Increasing number of small and medium enterprises in the region is expected to create growth opportunities for players. The growing e-commerce industry in India, coupled with expanding consumer base, is expected to contribute to market growth.

Digital Payment Market Share Insights

Major vendors in the market include Total System Services, Inc.; Wirecard AG; Novetti Group Limited; PayPal Holdings Inc.; ACI Worldwide Inc.; and Adyen N.V. Mergers and acquisitions as well as collaborations are some of the key strategies adopted by these players to gain a competitive edge in the market. Companies are consistently focusing on innovations to personalize and differentiate their solution offerings for potential customers. Companies are investing in research and development activities for updating and innovating products and solutions.

For instance, in September 2019, Canara Bank launched PIN + OTP cash withdrawal systems using ACI’s portfolio for Universal Payment solutions. In May 2018, PayPal Holdings Inc. partnered with Synchrony to expand its strategic consumer credit relationship. Numerous vendors are incorporating Artificial Intelligence (AI) and machine learning technologies in their payment solutions to improve money transaction security. Also, vendors are focusing on offering omni-channel payment infrastructure, which helps in reducing fraud and improving overall customer experience.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion, number of transactions in billion, valuation in USD Trillion, CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, Germany, U.K., China, India, Japan, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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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 2014 to 2025. 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, end use, and region:

  • Solution Outlook (Revenue, USD Billion, 2014 - 2025)

    • Application Program Interface

    • Payment Gateway

    • Payment Processing

    • Payment Security & Fraud Management

    • Transaction Risk Management

    • Others

  • Mode of Payment Outlook (Revenue, USD Billion, 2014 - 2025)

    • Bank Cards

    • Digital Currencies

    • Digital Wallets

    • Net Banking

    • Point of Sales

    • Others

  • Deployment Outlook (Revenue, USD Billion, 2014 - 2025)

    • Cloud

    • On-premise

  • Enterprise Size Outlook (Revenue, USD Billion, 2014 - 2025)

    • Large Enterprises

    • Small & Medium Enterprises

  • End Use Outlook (Revenue, USD Billion, 2014 - 2025)

    • BFSI

    • Healthcare

    • IT & Telecom

    • Media & Entertainment

    • Retail & E-commerce

    • Transportation

    • Others

  • Regional Outlook (Revenue, USD Billion; Number of Transactions, Billion; Valuation, USD Trillion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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