Increasingly Being Used To Curb The Spread Of COVID-19, Digital Payments Market To Reach A Whopping $5.4 Trillion In 2020!
The preference of online shopping while in quarantine is driving the global digital payments market – now expected to grow from $3.9 trillion in 2019 to about $5.4 trillion in 2020. Even when shopping in person, people are choosing to use no-contact forms of payment to avoid the spread of infection. These forms of payment, such as tap-to-pay and mobile pay methods, are thought to continue past the pandemic as well , not just due to cleanliness, but also ease of use.
As many retailers have closed their doors to the public in order to avoid gatherings, people are preferring online purchasing of essential supplies as well. While this is currently increasing the demand for the digital payments market, the market is expected to eventually stabilize and reach $8 trillion at a rate of about 20% through 2023. Ease of adoption and ease of use is expected to drive the digital payments market through the forecast period. People look for flexible, transparent, and friction-free onboarding. They are therefore more attracted towards methods of payment that are simple and straightforward in nature. As a result, software innovators such as PayPal are using automation in order to decrease the time it takes to get on board with their services. Digital payments are very easy to use when compared with conventional methods as they only require a bank account or phone number and a smart phone with internet facilities. This, over the hassle of cash (as well as the current coronavirus-amplified fear of germs), is why several users are increasingly opting for contactless payments technology such as mobile wallets, contactless cards and others. The security and convenience of such platforms contribute to the growth of the market.
With the climate of our world changing at a swift pace, digital payments could become one of the processes that add to our ‘new normal’. The Global Market Model has data showing that North America currently holds the largest share of the global digital payments market. Such payment methods are expected to become widespread, and seem like a good benefit to stay post-pandemic.
The Global Market Model is the world’s most comprehensive database of integrated market information available. The ten-year forecasts in the Global Market Model are updated in real time to reflect the latest market realities, which is a huge advantage over static, report-based platforms.
*The model is based on the consumption of goods and services in monetary terms (nominal growth), and therefore differ from GDP forecasts published by many leading institutions such as the World Bank and IMF.