The digital payment services category’s growth is driven by rising internet penetration and the adoption of mobile payments

Digital Payment Services Category - Procurement Intelligence

The global digital payment category size was valued at USD 81.03 billion in 2022. Overall, the increasing popularity of online shopping and smartphones is driving the demand for digital payment services. The rapid use of digital payment systems by young people, particularly Generation Z, is what is driving the trend in digital payments. This generation prefers online banking over other banking methods, and they seek personalized, adaptable, and relevant customer experiences. Because payment services are developing and delivering better customer experiences, there is a demand for improved user experiences that supports business growth. The increasing popularity of online shopping is driving the demand for digital payment services, as online shoppers prefer convenience and security. Smartphones make it easy to make payments online and in-store, while contactless payments are becoming more popular due to their convenience and hygienic nature. The security of digital payment services is improving, making consumers more comfortable using these services. For instance, Civic is an e-KYC platform providing secure digital identity at reduced cost provides secure digital identity at reduced costs, while cloud technology drives research and development in digital payment offerings.

Companies are continuously focusing on developing technologies or partnering and collaborating with tech-based firms to prevent fraud and increase security. For instance,

• In November 2022, Mastercard partnered with Vesta to offer a fraud management platform to merchants in Latin America and the Caribbean. The partnership aimed to improve the consumer's digital experience and bolster trust in e-commerce by addressing the increasing need for online shopping and addressing evolving fraud threats in real time.

• In March 2022, LexisNexis Risk Solutions acquired BehavioSec, a Swedish company specializing in behavioral biometrics tech, to enhance its device and digital identity-focused offerings. BehavioSec's predictive biometrics solution uses behavior analysis for continuous authentication, establishing identity trust, and preventing fraud. The acquisition became part of LexisNexis Risk Solutions' Business Services group.

Information is secured using cryptography, a method that converts it into a format that is difficult for unauthorized parties to read or understand. It is utilized in digital payments to safeguard sensitive data, including passwords and credit card details. Payment Card Industry Data Security Standard (PCI DSS) is a collection of security standards created to protect sensitive payment information, whereas Secure Sockets Layer (SSL) is a security protocol used to encrypt data communicated over the internet. Two-factor authentication (2FA) is a security procedure that adds an additional layer of protection against fraud by requiring users to submit two forms of identity.

Request a free sample copy or view report summary: Digital Payment Services Procurement Intelligence Report

Digital Payment Services Sourcing Intelligence Highlights

• The number of both large and small companies operating in different areas has caused the digital payment services category to become highly fragmented on a worldwide scale. Players compete aggressively with one another to grow their customer base and offer superior customer service.

• Technology cost, transaction cost, and labor account for the largest cost component of the digital payment services business.

• Most providers offer services such as fraud prevention, account management, customer support, and risk management.

Digital Payment Services Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence along with emerging technology and regulatory landscape

• Market estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the digital payment services category:

• Technology Cost

• Development and Integration

• Transaction Cost

• Processing and Service

• Administration and Compliance

• Labor

• Others

Technology cost, transaction cost, and labor form the largest cost components of the digital payment services category. 

List of Key Suppliers in the Digital Payment Services Category

• Visa

• Mastercard

• PayPal

• Alipay

• China UnionPay

• Amazon Pay

• Stripe

• PayU

• Adyen

• Paytm