Global Payments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Payments Market is segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality).

Market Snapshot

LWAN Market Size
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >8.2 %

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Market Overview

The Global payments market is expected to register a CAGR of over 8.2% during the forecast period 2022-2027. The key factor augmenting the market's growth include growing digitization, growth in E-commerce, rising internet penetration, and rapid adoption of mobile payments, among others.

· The global payment system is rapidly changing from cash to digital payment. Payments are becoming increasingly cashless and supporting the development of digital economies and innovation in payment infrastructure. Contactless payments are increasingly becoming a preferred payment method in various countries worldwide. Contactless payment systems at the POS, such as facial recognition, Quick Response (QR) codes, or Near-field Communication (NFCs), are changing the payment landscape across the globe.

· Several factors are driving the growth of the global payments market, including government financial inclusion initiatives that continue to encourage people to open bank accounts for the first time in developing countries and growing smartphone and internet penetration. Additionally, in more mature markets, contactless payment is hastening moves away from using cash, a trend further supported by the pandemic.

· Innovation in payment technology is ongoing across the world. Real-time payments are common in many geographies, including India and China. Many countries, such as Canada, plan to launch their Real-time payment in 2022. Point-of-sale lending and buy-now-pay-later financing solutions are reimagining lending and upending the POS experience.

· Furthermore, digital and mobile payment apps are rapidly growing in many countries due to the ease of convenience these methods offer. Digital payments apps solutions such as Apple Pay, Google Pay, and QR codes continue to grow. The growth of digital payments is further supported by increasing E-commerce across the world.

· However, digital payments services have benefits but pose privacy and security risks that can harm consumers, merchants, markets, and nations and hamper the market's growth. Payment systems must be redesigned to protect privacy and use unbreakable encryption and open standards. Data privacy legislation and a strong market regulator are also necessary.

· The COVID-19 pandemic reinforced major shifts in payment behavior worldwide: declining cash usage, migration from in-store to online commerce, adoption of instant payments, and adoption of digital payments. These shifts during COVID-19 created new opportunities for payment players to evolve into contactless and digital payment solutions.

Scope of the Report

The Global Payments Market is segmented by Mode of Payment (Point of Sale (Card Payments, Digital Wallet, Cash), Online Sale (Card Payments, Digital Wallet)), and by End-user Industries (Retail, Entertainment, Healthcare, Hospitality). E-commerce payments include online purchases of goods and services such as purchases made on e-commerce websites and online booking of travel and accommodation. The market scope excludes online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for Point-of-Sale, all transactions that occur at the physical point of sale are included in the scope of the market. It includes traditional in-store transactions and all face-to-face transactions regardless of the location of the transaction. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).

The study tracks key market metrics, underlying growth influencers, and significant industry vendors, providing support for Global market estimates and growth rates throughout the anticipated period. The study looks at COVID-19's overall influence on the Global payment ecosystem.

By Mode of Payment
Point of Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Cash
Others
Online Sale
Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
Digital Wallet (includes Mobile Wallets)
Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
By End-user Industry
Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries

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Key Market Trends

E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market

· The global E-commerce market is rapidly growing owing to the high internet and smartphone penetration, availability of easy payment checkout solutions, increasing number of online shoppers, and increased purchasing power of consumers. As per data published by EUROSTAT, the number of online shoppers in Europe increased from 60% in 2017 to 73% in 2021. Furthermore, the Asia Pacific region is witnessing tremendous growth in the E-commerce market.

· Many payment solutions provider companies partner with E-commerce giants for smooth payment checkout solutions. Additionally, many E-commerce giants have already launched their digital wallets to gain more market share, such as AliPay and Amazon Pay. It also results in the growth of the E-commerce market across the world.

· Another reason for the growth of E-commerce is Buy Now Pay Later services offered by most of the E-commerce giants across the world. Moreover, real-time payments such as buy now, and pay later are becoming a common sight at checkouts across the globe. As partnerships begin among BNLP brands, banks, and digital wallets, BNLP is expected to take a significant share of payments globally.

· The COVID-19 pandemic made a considerable impact on the E-commerce market globally. With brick-and-mortar stores shuttering overnight, shoppers flocked to the internet to buy their things. Pandemic accelerated the shift to online shopping supported by digital payment solutions. Furthermore, M-commerce continues to gain traction over the coming years. Technological advances like branded shopping apps, 5G wireless, and social shopping make it easier for people to shop on their phones.

LWAN Market Share

Asia Pacific Region is Expected to Grow at a Significant CAGR

· Asia-Pacific has been the most significant and fastest-growing payments market region over the past few years, owing to the consistently strong growth rate of China's economy and the emerging economy of India, Government initiatives towards digitization, and the growing adoption of E-commerce in the region.

· Moreover, the Asia Pacific payments sector has benefited from extensive fintech activity focused on digitizing small merchants and enhancing overall business efficiency, with many fintech companies launching their digital wallets in the region.

· China accounts for a significant market share within the Asia Pacific region and generates higher payments revenues than any individual major region globally. Further, major market players such as AliPay and UnionPay are expanding their services across the region with innovative payment solutions.

· Furthermore, the growth of the Asia Pacific is further attributed to the rise of real-time payments in the region. India's real-time payment system generates significant revenue in the India Payments market. The emergence of Buy Now Pays Later services also drives the Asia Pacific payments market. Moreover, increased access to real-time payment rails has fueled rapid growth in bilateral cross-border payment activity: notable in Singapore, Indonesia, and Thailand corridors, an area with significant potential for value-added services.

· The Covid-19 pandemic has accelerated reductions in cash usage, particularly in markets such as Indonesia and Thailand, creating new digital revenue opportunities. A solid majority has moved permanently to card and digital wallet-based forms.

LWAN Market Forecast

Competitive Landscape

The payment market competition appears to be fragmented, with several players in the market. These major players offer innovative digital payment technologies and indulge in mergers and acquisitions to gain market share. Major players in the Global payments market include Mastercard Inc., Visa Inc., UnionPay International, and PayPal Holdings Inc., among others.

· May 2022 - Mastercard announced a strategic partnership with HyperPay, Saudi Arabia’s e-commerce payment services provider, to boost the adoption of digital payment solutions in the Middle-East and North Africa (MENA). The partnership aims to help businesses, SMEs and governments move from cash to digital. Further, as part of the deal, Mastercard has also invested in HyperPay, leading a USD 40 million funding round.

· May 2022 - Trustly, a prominent international payments platform for digital A2A transactions, announced the acquisition of Ecospend to expand its presence in the United Kingdom. Ecospend is regulated by the Financial Conduct Authority (FCA) in the UK, offers an array of services, and has connectivity with more than 80 banks in the United Kingdom.

· March 2022 - Visa announced the completion of the acquisition of Tink, an open banking platform that enables fintech, financial institutions, and merchants to build financial products and services and move money. Tink enables customers to transfer money, access aggregated financial data, and use smart financial services such as risk insights and account verification through a single API.

Recent Developments

· May 2022 - Sokin, a new generation fintech payment firm, announced a comprehensive partnership agreement with Mastercard to support the rollout of its fixed-price payment services across novel markets in the Middle East and Africa. According to the agreement, Sokin will leverage Mastercard’s digital-first banking solutions and card services to launch its next-generation card programs for consumers and businesses and to expand its footprint.

· May 2022 - Airwallex announced the launch of the Airwallex Borderless Card and an integrated expense management solution. Airwallex Borderless Card is a virtual multi-currency Visa business debit card that enables businesses to easily make online card payments anywhere that Visa is accepted.

· May 2022 - Mastercard and CRED, a leading Indian FinTech, announced a campaign to enable Mastercard credit cardholders to make simple, secure tuition and rent payments for housing expenses using the CRED application. Cardholders will be benefited from the convenience of making high-value transactions such as rent payments or paying maintenance and school fees from primary school to university from any mobile device while benefiting from additional liquidity and enjoying exclusive cashback and credit card rewards.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Stakeholder Analysis

    3. 4.3 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Evolution of the Global Payments Landscape

    5. 4.5 Key market trends pertaining to the growth of cashless transaction

    6. 4.6 Impact of COVID-19 on the Global payments market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 E-commerce Supported by the Rise of M-commerce is Expected to Drive the Market

      2. 5.1.2 Enablement Programs by Key Retailers and Government Encouraging Digitization of the Market

      3. 5.1.3 Growth of Real-time Payments in Various Countries

    2. 5.2 Market Challenges

      1. 5.2.1 Challenges Related to Privacy and Security of the Digital Payments

    3. 5.3 Market Opportunities

      1. 5.3.1 Move towards Cashless Society

      2. 5.3.2 New Entrants to Drive Innovation Leading to Higher Adoption

    4. 5.4 Key Regulations and Standards in the Digital Payments Industry

    5. 5.5 Analysis of major case studies and use-cases

    6. 5.6 Analysis of key demographic trends and patterns related to Global payments industry (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)

    7. 5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends

    8. 5.8 Analysis of cash displacement and rise of contactless payment modes

  6. 6. Market Segmentation

    1. 6.1 By Mode of Payment

      1. 6.1.1 Point of Sale

        1. 6.1.1.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 6.1.1.2 Digital Wallet (includes Mobile Wallets)

        3. 6.1.1.3 Cash

        4. 6.1.1.4 Others

      2. 6.1.2 Online Sale

        1. 6.1.2.1 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)

        2. 6.1.2.2 Digital Wallet (includes Mobile Wallets)

        3. 6.1.2.3 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)

    2. 6.2 By End-user Industry

      1. 6.2.1 Retail

      2. 6.2.2 Entertainment

      3. 6.2.3 Healthcare

      4. 6.2.4 Hospitality

      5. 6.2.5 Other End-user Industries

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 Mastercard Inc.

      2. 7.1.2 Visa Inc.

      3. 7.1.3 AliPay (Alibaba Group)

      4. 7.1.4 UnionPay International

      5. 7.1.5 PayPal Holdings, Inc.

      6. 7.1.6 Google Pay (Google LLC)

      7. 7.1.7 Apple Pay (Apple Inc.)

      8. 7.1.8 Amazon Pay (Amazon.com, Inc.)

      9. 7.1.9 American Express Company

      10. 7.1.10 Adyen

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

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Frequently Asked Questions

The Global Payments Market market is studied from 2020 - 2027.

The Global Payments Market is growing at a CAGR of >8.2% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Mastercard Inc., Visa Inc. , PayPal Holdings, Inc., AliPay (Alibaba Group), UnionPay International are the major companies operating in Global Payments Market.

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