Digital Payments Market Size

Digital Payment Market Analysis

The Digital Payments Market is expected to register a CAGR of 11.08% during the forecast period.

• The widespread launch of mobile wallets and the rise in various technological developments in smartphones, digital payment cards, and POS at retail terminals are fueling the expansion of the market. The market's growth is anticipated to be positively impacted by the quick increase in smartphone penetration across emerging economies.
• Governments are introducing digital payment options to their initiative toward a digitalized and cashless society. The emergence of Bring Your Own Device(BYOD), an increase in the usage of smartphones, and a vast number of individuals without bank accounts are some of the crucial factors expected to offer lucrative growth opportunities for digital payments.
• Moreover, stores and services worldwide are rapidly adopting and integrating mobile payment applications like PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay. These apps accept digital payments. This trend and scenario are anticipated to continue over the projected period due to changing lifestyles, daily commerce, and rapid growth in online retailing. Although card-based transactions account for a sizeable portion of non-cash transactions, growth has slowed due to local and regional payment methods like EuPay, EPI, and Verve Card, which are challenging the worldwide card market.
• Vendors are also launching cloud-based digital payment solutions. For instance, in October 2022, Mercury Payment Services used Oracle banking payments that run on Cloud Infrastructure to help democratize digital payments in the United Arab Emirates. Additionally, banks are innovating their digital payment products to integrate with a complete health ecosystem.
• The increase in international trade, internationalization of production, and cross-border e-commerce suggest that demand for digital cross-border payments will continue to grow globally. However, digital payments from one country to another might prove to be costlier, slower, and less transparent than domestic payments due to the complexity involved in the procedure. This might hinder the growth in adopting digital payments for cross-border transactions amongst regional enterprises, especially small and medium-sized businesses.
• The wide acceptance of digital payment methods is expected to augment post-COVID-19 and play a significant role in the long-term market scenario. With cash being a potential carrier for the virus, regulatory bodies and governments discourage its use. For instance, cash use in Britain has halved in recent days following the government-imposed lockdown, and essential goods stores are increasingly avoiding cash transactions. Various mobile payment vendors in the market are expected to focus on increasing their user base during this period and return to post-COVID-19 scenarios, owing to which vendors offer benefits and offers and waive their fees for using their services.