Digital Payments Market Size (2024 - 2029)

The digital payments market is experiencing significant growth, driven by the increasing adoption of mobile wallets, technological advancements in smartphones, and the expansion of digital payment options by governments aiming for a cashless society. The market size is further influenced by the rise in smartphone penetration in emerging economies and the integration of mobile payment applications into retail and service sectors worldwide. Despite challenges posed by local payment methods and the complexities of cross-border transactions, the demand for digital payments continues to expand, particularly post-COVID-19, as regulatory bodies encourage reduced cash usage.

Market Size of Digital Payments Industry

Digital Payments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR (2024 - 2029) 11.08 %
Fastest Growing Market Middle East and Africa
Largest Market North America
Market Concentration Low

Major Players

Digital Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

Digital Payment Industry Segmentation

Digital payment is made using digital channels. Both the payer and the payee send and receive money using digital methods in digital payments. Another name for it is electronic payment. Digital payments don't include real money. Per industry standards, DP is called non-cash transactions via digital platforms. The report's purview is limited to consumer transactions made through digital commerce (payments made through online payment gateways for card payments, direct debit, and mobile point-of-sale transactions).

The Digital Payments Market is segmented by mode of payment (point of sale and online sale), by end-user industry (retail, entertainment, healthcare, hospitality), and by geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).

The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Mode of Payment
Point of Sale
Online Sale
By End-user Industry
Retail
Entertainment
Healthcare
Hospitality
Other End-user Industries
By Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa
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Digital Payments Market Size Summary

The digital payment market is experiencing significant growth, driven by the proliferation of mobile wallets and advancements in technology such as smartphones, digital payment cards, and POS systems. The shift towards a cashless society, supported by government initiatives, is further propelling market expansion. The increasing adoption of Bring Your Own Device (BYOD) policies and the rise in smartphone usage, particularly in emerging economies, are creating lucrative opportunities for digital payments. The integration of mobile payment applications like PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay into retail and service sectors is reshaping consumer behavior and facilitating seamless transactions. Despite the dominance of card-based transactions, regional payment methods are emerging as strong competitors, challenging the global card market. The introduction of cloud-based digital payment solutions and innovations in banking products are also contributing to the market's growth trajectory.

The digital payment landscape is characterized by rapid adoption in retail, driven by the surge in online shopping and the need for secure, efficient transactions. E-commerce platforms and traditional retailers are increasingly incorporating digital payment methods, such as NFC, mobile apps, and QR codes, to enhance customer experience. North America stands out as a major market, with high internet penetration and a tech-savvy consumer base. The region's digital payment market is bolstered by mobile payment solutions and a thriving e-commerce sector. Continuous innovation and strategic partnerships among technology companies, financial institutions, and merchants are key to the market's expansion. The market remains highly fragmented, with major players like PayPal, Visa, Mastercard, and Amazon Payments adopting strategies such as partnerships and acquisitions to strengthen their offerings and maintain a competitive edge.

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Digital Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Stakeholder Analysis

    3. 1.3 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Payments Infrastructure and Evolution of Payment Landscape

    5. 1.5 Regulatory Sandbox

      1. 1.5.1 Regulatory Landscape Across the World

      2. 1.5.2 Business Models with Potential Regulatory Roadblocks

      3. 1.5.3 Scope for Development in Lieu of Evolving Business Landscape

    6. 1.6 Impact of COVID-19 on the Market

    7. 1.7 Analysis of Digital Payment Infrastructure

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Mode of Payment

      1. 2.1.1 Point of Sale

      2. 2.1.2 Online Sale

    2. 2.2 By End-user Industry

      1. 2.2.1 Retail

      2. 2.2.2 Entertainment

      3. 2.2.3 Healthcare

      4. 2.2.4 Hospitality

      5. 2.2.5 Other End-user Industries

    3. 2.3 By Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East and Africa

Digital Payments Market Size FAQs

The Digital Payments Market is projected to register a CAGR of 11.08% during the forecast period (2024-2029)

Paypal Holdings Inc., Visa Inc., Mastercard Incorporated (Mastercard), Amazon Payments Inc. (Amazon.com Inc.) and Alphabet Inc. are the major companies operating in the Digital Payments Market.

Digital Payment Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)