What Factors Propelled The Growth Of The Digital Payments Market In The Past?
The digital payments market has seen considerable growth due to a variety of factors.
• The size of the digital payments market has seen robust growth in the recent past. The market, worth $125.94 billion in 2024, is projected to expand to $137.43 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.1%.
The historic period's growth is attributed to robust economic evolution in emerging markets, heightened internet access, policy support from governments in developing economies, the burgeoning e-commerce sector, and greater accessibility of mobile devices.
What Are the Future Growth Projections for the Digital Payments Market?
The digital payments market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the digital payments market is anticipated to experience significant growth, reaching a value of $198.99 billion in 2029, fueled by a compound annual growth rate of 9.7%.
This growth during the projected period is driven by factors such as the rise of smart cities, government promotion of digital payments, IoT advancements, the growing adoption of 5G networks, increased internet connectivity and the impact of COVID-19. Prominent trends anticipated during this period include enhancing customer convenience through digital wallet services, enabling faster transactions via wearable payment devices, investment in QR-based payment technologies, strengthening contactless payment methods, putting resources into AI solutions and blockchain technologies, creating effective, low-cost, and accessible financial systems, and pioneering payment solutions at fuel stations to cut down on operational expenses.
What Are The Primary Growth Drivers In The Digital Payments Market?
The potential growth of the digital payment market is projected to be fueled by the quick onboarding and user-friendly interface. People gravitate towards options that offer flexibility, transparency, and seamless onboarding. This attraction to frictionless processes is why software trailblazers like Square and PayPal employ automation technologies to shorten the onboarding process to a matter of minutes. Using digital payments is notably more straightforward than the traditional methods, as it only calls for a bank account number or telephone number, alongside a smartphone connected to the internet. For example, recent data gathered by the Taiwanese government reveals that nearly 10 million out of the approximately 23 million residents are mobile payment users. The simplicity of usage augments the user count, thus bolstering the expansion of the digital payments market.
What Are The Major Segments Within The Digital Payments Market?
The digital payments market covered in this report is segmented –
1) By Mode Of Payment: Point Of Sale, Online Sale
2) By End-User Industry: Retail, Banking And Financial Service, Telecommunication, Government, Transportation, Others
3) By Deployment: Cloud, On-Premise
4) By Enterprise: Large Enterprises, Small And Medium Enterprises
Subsegments:
1) By Point of Sale (POS): Card Payments, Contactless Payments, QR Code Payments, Digital Payment Terminals
2) By Online Sale: E-commerce Payments, Mobile App Payments, Payment Gateway Solutions, Subscription-based Payments, Digital Wallet Transactions
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Which Trends Are Expected To Transform The Digital Payments
In the digital payment sector, the popularity of contactless payment technology is skyrocketing. More and more individuals are choosing contactless payment methods such as mobile wallets and contactless cards due to their enhanced security and ease of use. The transfer of funds in contactless payment technology is facilitated by either radio frequency identification (RFID) or near-field communication (NFC). In 2023, the volume of mobile payment transactions reached $1,402.5 billion, marking a 28.5% rise from 2022.
Who Are the Key Players in the Digital Payments Market?
Major companies operating in the digital payments market include:
• Paypal Holdings Inc.
• Ant Group
• Amazon.com. Inc.
• Visa Inc.
• Apple Inc.
• Google Pay
• Mastercard Incorporated
• JP Morgan Chase & Co.
• Fiserv Inc.
• ACI Worldwide Inc.
• PayUmoney
• Paytm
• CCAvenue
• Razorpay
• Instamojo
• Cashfree
• Line Pay
• Rakuten Pay
• Origami Pay
• D-barai
• AliPay
• WeChatPay
• UnionPay
• 99Bill
• PayEase
• Worldpay
• Stripe
• Shopify Payments
• Opayo
• Adyen
• SystemPay International
• Novalnet
• Wirecard
• Sberbank Online
• Yandex Money
• QIWI
• WebMoney
• Tinkoff Bank
• Cielo
• Rede
• Getnet S
• toneCo
• GlobalCollect
• Lyra Network
• Paybox Services
• CASHU
• Trriple
• Monami Tech
• DPO Group
• MTN Group Limited
• Flutterwave
• M-Pesa
• Coruscate’s Alexpay
• Digipay
• Software Group
• Kineto
What Is The Most Dominant Region In The Digital Payments Market?
Asia-Pacific was the largest region in the digital payments market in 2024. Western Europe was the second largest region in the digital payments market report. The regions covered in the digital payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
