Digital Payments Market - Growth, Trends and Forecast (2019 - 2024)

Digital Payments Market is segmented by Mode of Payment (Point of Sale (Bank Cards), Online Sale (Net Banking)), End-user Industry (Retail, Transportation, Telecommunications, Banking, and Financial Sector), and Region

Market Snapshot

digital payments market
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

Key Players:

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Digital Payments Market

  • The global digital payments market was valued at USD 3,417.39 billion in 2018, and is expected to reach USD 7,640 billion by 2024, recording a CAGR of 13.7%, during the forecast period of 2019-2024. Money and the idea of its exchange through payments have evolved drastically after their inception. From metal coins to paper, from bank accounts to e-wallets, money has taken various shapes, sizes, and forms. Over the last decade, the payment industry has recorded a robust growth, with new providers, new platforms, and new payment tools being launched almost every year.
  • The market studied is expected to flourish, owing to the robust proliferation of the internet. The internet penetration rate has been recording a healthy growth over the past few years, and is expected to continue traversing the same trajectory, owing to increasing investments by internet service providers.
  • Security is of paramount importance in digital payments. With a multitude of digital transactions taking place via smartphones, the chances of a security breach exist, especially when most of the mobile wallets and banking applications do not deploy hardware-level security, to make online transactions more secure.
  • The global economy is moving toward digitalization to leverage the speed and convenience offered. However, it is prone to cyber-attacks. Recent attacks, such as WannaCry and Wquifax breach, have exploited the vulnerabilities of the system. Thus, governments of various countries are enforcing stringent regulations to deal with such attacks. For instance, two new regulations related to cybersecurity, the European Union’s General Data Protection and New York Department of Financial Services, are already in place. In the future, the number of such regulations from various central authorities is expected to increase, in order to curb cyber-attacks.

Scope of the Report

Digital payment is a way of payment, which is made through digital modes. In digital payments, the payer and payee both use digital modes to send and receive money. It is also called electronic payment. No hard cash is involved in digital payments.

By Mode of Payment
Point of Sale
Contact Payment
Contactless Payment
Bank Cards
Online Sale
Digital Wallets
Digital Currencies
Net Banking
Other Online Sales Channels
By End-user Industry
Retail
Banking and Financial Service
Telecommunication
Government
Transportation
Other End-user Industries (Media and Entertainment)
Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East & Africa

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Key Market Trends

Contact Less Payment Method to Emerge As One of the Preferred Option

  • Contactless payment is an alternative payment channel. It uses short-range wireless technologies, such as radio frequency identification (RFID) or near field communication (NFC), to securely complete payments between a contactless card and contactless-enabled PoS terminal.
  • The factors that drives the use of contactless payment include, but are not limited to, ease of use, speed, and integrated and seamless experience. For instance, contactless transactions take close to 1/10th of the time taken by traditional electronic transactions.
  • Driven by hassle-free and convenient experiences, contactless payments are witnessing robust adoption in countries, such as the United Kingdom, Australia, Canada, and Singapore. For instance, in the United Kingdom, the number of contactless transactions reached 2.86 billion in 2016, thereby, indicating a growth rate of about 174%.
  • The mobile contactless user base increased from about 20 million in 2015 to 144 million in 2017. Thus, with the increasing acceptance of mobile and digital payments, contactless payments are anticipated to record growth. Moreover, the adoption of contactless cards is projected to transform the landscape of traditional payments, as these cards act as significant threats to EMV cards and the magnetic stripe technology.
digital payments market

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United States to Account for the Most Significant Share in North America

  • Digital payment is all set to be the preferred mode of payment for US citizens. For instance, 41% of all shoppers said that their smartphone or tablet is becoming their ‘most important shopping tool. Moreover, mobile payment is the preferred mode of payment among millennials.
  • E-commerce sales in the region are also increasing, with the improvement of digital payment experience. This increase also reflects consumers’ increasing comfort with online shopping, coupled with their increasing use of mobile and hand-held devices.
  • When comparing online/e-commerce (no card present) payments with card-in-hand payments, digital proved to be the higher growth category, accounting for growth up to 23%, over the last year.
digital payments market

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Competitive Landscape

  • The market is moderately concentrated. The competitive rivalry in the market studied is moderate, as a good number of players prevail. Despite the existence of several companies in the market studied, firms are required to keep innovating their products, in order to gain a sustainable competitive edge over their rivals and provide product differentiation.
  •  Some key players include PayPal, Amazon, and Google. Some of the recent developments in the area are as follows:
    • PayPal partnered with Synchrony to significantly expand its strategic consumer credit relationship, in May 2018.
    • Visa unveiled the world’s first wallet card. Features of the wallet card range from the capacity to access multiple cards, whether EMV-, contactless-, or magnetic stripe-based, to a programmable on-card display that enables account information, such as alerts or coupons, to be sent to the cardholder via an embedded antenna.

Major Players

  1. Apple Inc.
  2. Amazon.com Inc.
  3. Alphabet Inc.
  4. Visa Inc.
  5. PayPal Holdings Inc

* Complete list of players covered available in the table of contents below

digital payments market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Internet Penetration

      2. 4.3.2 Growing E-commerce Market

    4. 4.4 Market Restraints

      1. 4.4.1 Security and Privacy Concerns

      2. 4.4.2 Additional Charges for Making Payments

      3. 4.4.3 Instability of Mobile Networks

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness- Porters Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Mode of Payment

      1. 5.1.1 Point of Sale

        1. 5.1.1.1 Contact Payment

        2. 5.1.1.2 Contactless Payment

        3. 5.1.1.3 Bank Cards

      2. 5.1.2 Online Sale

        1. 5.1.2.1 Digital Wallets

        2. 5.1.2.2 Digital Currencies

        3. 5.1.2.3 Net Banking

        4. 5.1.2.4 Other Online Sales Channels

    2. 5.2 By End-user Industry

      1. 5.2.1 Retail

      2. 5.2.2 Banking and Financial Service

      3. 5.2.3 Telecommunication

      4. 5.2.4 Government

      5. 5.2.5 Transportation

      6. 5.2.6 Other End-user Industries (Media and Entertainment)

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Mexico

        3. 5.3.4.3 Rest of Latin America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 South Africa

        4. 5.3.5.4 Rest of Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 PayPal Holdings Inc.

      2. 6.1.2 Visa Inc.

      3. 6.1.3 MasterCard Incorporated (MasterCard)

      4. 6.1.4 Amazon.com Inc.

      5. 6.1.5 Alphabet Inc.

      6. 6.1.6 Apple Inc.

      7. 6.1.7 CCAvenue (Avenues India Pvt. Ltd)

      8. 6.1.8 Paytm Mobile Solutions Private Limited

      9. 6.1.9 Stripe Inc.

      10. 6.1.10 Alipay.com Co. Ltd

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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