Payment Instruments Market Size, Share & Trends Analysis Report By Type (Desktop, Handheld, Mobile), By End-use (BFSI, Retail & E-commerce, Healthcare), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global payment instruments market was valued at USD 111.97 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.3% from 2022 to 2030. The growth is expected to be driven by the increasing digital payment platforms such as mobile banking, personal finance management, and digital wallets. The growing development of non-cash payment instruments such as mobile wallets, credit cards, and smart cards is anticipated to further fuel the growth. Moreover, the widespread availability of smartphones has led to the increasing use of mobile wallet applications, thereby contributing to the growth of the industry.

The rising digitalization in the banking sector has fueled the development of digital payment systems, thus increasing the demand for mobile wallets among others. The rise in digital transactions has reduced bank operation costs, eventually boosting market growth. Several banks, such as Wells Fargo, Bank of America, and others, have seen an upsurge in the usage of digital banking. For instance, in the U.S., bank loan sales accounted for 61% via digital channels in Feb 2021 compared to the previous year.

The growing consumer preference for cashless payment as it offers convenience is anticipated to increase the demand for payment instruments over the forecast period. Moreover, the rising adoption of digital payment among the younger generation further boosts the growth of the market. According to a survey conducted by Business Wire, 71% of the Gen Z population across the globe prefer cashless payment solutions and 68% of millennials have adopted cashless payment methods.

Government bodies across the globe are constantly encouraging the use of various payment instruments such as mobile wallets, net banking, and other digital payment platforms. The growing initiatives by the governments of several countries to embrace digitalization are further anticipated to fuel the growth of the market. According to a report published by the Ministry of Electronics and Information Technology, India (MEIT) in March 2022, the volume of UPI transactions in India has increased from USD 2.6 million in 2017-2018 to USD 6.9 million in 2020-2021. A total of USD 10 million UPI transactions have been reported till March 2022.

However, the growing concerns over the level of security offered by payment instrument platforms are expected to restrain the growth of the payment instruments market over the forecast period. In addition, the growing cyber-crimes across the globe are also likely to hinder the growth. On the other hand, innovations in security technologies are expected to minimize the risk of financial fraud. Thus, creating growth opportunities for the industry growth over the forecast period.

COVID-19 Impact Analysis

The COVID-19 pandemic was a major growth driver owing to the increased demand for contactless payments during the pandemic. The popularity of several payment instruments, such as tap to pay, scan to pay, and others, is growing as people worldwide are putting a strong emphasis on adopting payment instrument platforms. Payment instrument platform providers’ actions have been focused on short-term goals like capturing and making consumers aware of various payment instruments.

Platform providers are making consumers aware through their offerings, such as an improved digital banking user interface to enhance the overall customer experience. Such steps have laid the foundation for long-term sustainability and growth of the payment instruments market. For instance, Bank of America saw a spike in the usage of its chatbot Erica during the pandemic, thereby enabling consumers to opt for digital net banking solutions.

Type Insights

The desktop segment accounted for the largest revenue share of over 39.0% in 2021. The growing integration of payment gateway platforms within the desktop by payment instrument solution providers is anticipated to drive the growth of the segment. Various efforts being pursued by payment instrument solution companies to improve their respective products bode well for the segment's growth. In addition, the payment gateway provides customers with the most diverse payment options, including credit and debit cards, net banking, Equated Monthly Installments (EMIs), Buy Now Pay Later (BNPL), and Unified Payments Interface (UPI), and wallets. For instance, PayU allows customers and merchants to pay online.

The mobile segment is expected to witness the highest growth during the forecast period. The segment is anticipated to be driven by increased mobile penetration across the globe. Moreover, a rise in the adoption of digital wallets by consumers worldwide is anticipated to drive the expansion of the electronic payment market. For instance, according to a report published by Global Payments, Inc. in 2021, 25.7% of the payments at POS terminals were done by mobile wallets.

End-use Insights

The retail & e-commerce segment accounted for the largest revenue share of more than 22.0% in 2021. The growth is attributed to the rising popularity of online shopping and consumers' preference for cashless payment. Moreover, growing innovations in 5G and Artificial Intelligence (AI) have enabled users to opt for various payment instruments such as mobile wallets, scan to pay, and others to pay for retail & e-commerce transactions, thereby driving the segment growth.

For instance, according to a survey conducted by Sensor Tower, in October 2021, the downloaded mobile shopping platforms accounted for over 113 million. Thus, increasing demand for online shopping is expected to fuel the growth of the retail & e-commerce segment over the forecast period.

The BFSI segment is anticipated to grow at a promising CAGR over the forecast period. The growing demand for digital services offered by the banks, such as net banking, to their consumers is increasing the use of digital payment instruments. For instance, in June 2019, the Bank of America Corporation launched a digital debit card offering its customers improved convenience.

Furthermore, the growing adoption of online and mobile banking applications by the general population that allows them to transfer funds and receive financial information instantly is anticipated to support the growth of the segment over the forecast period.

Regional Insights

North America accounted for the largest revenue share of over 31.0% in 2021. The growing preference for contactless and digital payment across the North American region is expected to boost the growth. In addition, the vast presence of payment solution providers across the region bodes well for the regional growth of the industry. For instance, in June 2022, PaySafe introduced a new plan for its U.S.-based digital wallet Skrill to meet the requirements of online gamblers.

Asia Pacific is expected to grow at the highest CAGR over the forecast period. The growth can be attributed to the growing awareness in countries such as China, India, and Japan, about the benefits offered by digital payment solutions. The presence of a vast consumer base is also expected to contribute to the growth. For instance, in February 2022, Siam Commercial Bank (SCB), a Thailand-based full-service bank, invested USD 100 million in Akulaku, an Indonesian digital finance & banking platform. This investment expands the geographic presence of SCB across Southeast Asia and enables the bank to introduce new products.

Key Companies & Market Share Insights

The market can be described as highly competitive due to the presence of several prominent players. Several companies are adopting strategies, such as new product launches, strategic partnerships, and geographic expansion, to sustain their market position.

For instance, in March 2022, NCR Corporation, a worldwide technology solution provider, announced the acquisition of Spoke Technologies Limited's fintech property rights for Open Banking. The acquisition accelerates NCR Corporation's progress into open and international digital banking, which adds data integration capabilities to support personalization and customer-led experiences.

The players are focusing aggressively on mergers & acquisitions to enhance their product offerings and expand their market reach. For instance, in March 2022, GigIndia was acquired by Phonepe to improve the services provided to business and corporate partners. Thereby providing businesses with blue-collar talent on GigIndia's platform. Some prominent players in the global payment instruments market include:

• NCR Corporation

• Ingenico

• PAX Technology

• Verifone, Inc.

• Newland Payment Technology

• Fiserv, Inc.

• Castles Technology

• Clover Network, LLC

• Equinox Payment

• Dspread Technology (Beijing) Inc.

Payment Instruments Market Report Scope

Global Payment Instruments Market Segmentation

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 this study, Grand View Research has segmented the global payment instruments market report based on type, end-use, and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Desktop

  • Handheld

  • Mobile

• End-use Outlook (Revenue, USD Billion, 2017 - 2030)

  • BFSI

  • Healthcare

  • IT & Telecom

  • Media & Entertainment

  • Retail & E-commerce

  • Transportation

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa