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Digital Payment Market Share, Analysis 2025 | Industry Trend Report

Digital Payment Market Analysis Report By Solution, By Mode of Payment, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2019 To 2025

Report ID: MN17619733  |  Published: May 2020  |  No of Pages: 150
Format: Electronic (PDF)  |  Industry: Computing & Technology  |  Publisher: Grand View Research

Industry Insights

The global digital payment market size was accounted for USD 43.5 billion, in 2018. It is estimated to attain a CAGR of 17.6% over the forecast period, 2019-2025. This growth is attributed to rising penetration of smartphones and internet across the globe. Moreover, availability of large number of digital payment platforms is anticipated to drive the growth of the market. In addition, rising number of government initiatives for digitization is the key factor driving the growth of this market. For example, the Digital India campaign launched by the government of India focuses on encouraging people to go cashless by using various digital payment platforms and mobile applications.

Digitalization is driving the emergence of various digital payment platforms. Moreover, rising penetration of internet, e-commerce platforms, and increasing use of e-wallets for payment is anticipated to further prolife rate the market growth. In addition, rising need for providing high-end customer supports at the terminal of Point of Sales is projected to augment the market growth over the forecast period.

U.S.Digital Payment Market Programmers are striving to develop secured and safe digital payment gateways which are projected to propel the growth of the market. Moreover, increasing technological advancements such as artificial intelligence, block chain technology, and IoT is expected to boost the market growth.

Moreover, high convenience and easy accessibility offered by digital payment platforms is expected to boost their popularity among large consumer group. Moreover, improved reliability and security over conventional payment options are the factors anticipated to propel the growth of various digital payment services. Furthermore, programmers and developers are implementing certain technologies to enhance the security of such payment portals and to minimize the number of frauds.

The transaction system featured by such digital payment portals is real-time, personalized and agile. These portals are designed using block chain technology, Application Program Interface technology, and mobile wallets. Such technologies help in enhancing the use experience. Further, rising incidences of frauds and cybercrimes is projected to hinder the market growth from 2019 to 2025.

Solution Insights

In 2018, the segment of payment processing held the largest digital payment market share. This is attributed to increasing campaigns that promote digital and online transactions. Moreover, rising adoption of this segment across the end-use industries for minimizing the time consumed for processing of payments and cost of administration. In addition, these solutions are faster than traditional payment methods and help in streamlining the transactions. Furthermore, rising penetration of Visa, Europay, and MasterCard across the developing and developed regions is projected to augment the growth of payment processing segment.

The segment of payment gateway is projected to attain the fastest growth from 2019 to 2025 owing to several factors including rising trend of cashless transactions, emergence of token system, and cash pooling. Gateways ensure the security of merchant and consumer data by utilizing industry standards and encryptions. These factors are expected to proliferate the growth of the segment over the forecast period.

Mode of Payment Insights

In 2018, the Point of Sales segment held the largest market share due to various advantages such as high accuracy, efficiency, and easy usage. Moreover, the POS terminal helps in keeping the record of multiple transactions by streamlining the process of accounting. In addition, quick acceptance of multiple transactions by the POS terminal through mobile wallets, contactless payment, and EMV chip cards is projected to further boost the popularity of the segment among the large consumer group.

The segment of digital wallets is projected to attain the fastest growth from 2019 to 2025 owing to rising popularity of e-commerce portal and online purchases among the consumers across the globe. Moreover, these wallets are easy to use. Additionally, they are considered to be the most secured way of digital transactions. This is projected to augment the growth of the segment over the forecast period.

Deployment Insights

On the basis of deployment, the market for digital payment is divided into on-premise and cloud-based deployment. The cloud-based deployment segment is projected to attain the fastest CAGR from 2019 to 2025. It consists of the configuration which enables centralized transactions. It helps in optimizing the operational costs and capital expenses. Majority of the organizations prefer cloud-based deployment solutions owing to its easy accessibility. These factors are expected to boost the growth of the segment in the forthcoming years.

In 2018, the on-premise segment held the largest market share due to availability of customized solutions that fulfills specific requirements of clients. Moreover, this software can be operated without internet connectivity. These features are anticipated to impact positively on the market growth from 2019 to 2025.

Enterprise Size Insights

The market is categorized into small and medium enterprises and large enterprises on the basis of enterprise size. Majority of the large enterprises prefer digital payment platforms to offer high convenience, easy execution, improved user experience, and high administrative visibility. Moreover, these platforms improve the domestic as well as international exposure of organizations. This is further projected to boost the demand for digital payment services across the large enterprise segment.

The segment of SMEs is projected to attain a notable growth from 2019 to 2025 due to rising number of new entrants entering in the market across the globe. In addition, various governments are launching campaigns to promote digital payment platforms for small and medium enterprises. This is projected to propel the segment’s growth from 2019 to 2025.

End Use Insights

The market is categorized into healthcare, transportation, BFSI, IT and telecom, retail and e-commerce, media and entertainment, and others on the basis of end use. The segment of BFSI held the largest market share in 2018 owing to rising adoption of e-payment platforms. Moreover, rising digitalization across financial institutions and banks is projected to further augment the growth of BFSI segment in the forthcoming years. In addition, growing popularity of e-wallets, mobile banking, and personal finance management is projected to contribute to the growth of the segment.

Europe Digital Payment market

The segment of e-commerce and retail is projected to grow at the fastest CAGR from 2019 to 2025 owing to simplification of buying process by mobile wallets and e-wallets supported by majority of the e-commerce platforms. In addition, factors such as easy payment options and penetration and adoption of smartphones and mobile wallets is projected to further fuel the segment’s growth over the forecast period.

Regional Insights

In 2018, North America held the largest share across the global digital payments market owing to presence of leading providers of digital payment services. Moreover, rising penetration of e-commerce platforms and digitalization across the region are the factors propelling the regional market growth. In addition, rising adoption of cashless transaction in Canada owing to presence of strong digital infrastructure and customer willingness is anticipated to further contributed to the regional growth.

Asia Pacific is projected to attain the fastest CAGR across the global market from 2019 to 2025 owing to rising government campaigns that promote usage of digital payment portals and propagation of digitalization. Moreover, rising number of SMEs and new entrants entering in the regional market is projected to propel the market growth in Asia Pacific. Furthermore, rising penetration of e-commerce industry and availability of large consumer base in India are anticipated to impact the regional market growth.

Digital Payment Market Share Insights

Leading players operating in this industry are Wirecard AG; Total System Services, Inc.; Novetti Group Limited; ACI Worldwide Inc.; Adyen N.V.; and PayPal Holdings Inc. These players are focusing on various strategic initiatives like M&A, strategic partnerships and collaborations for gaining competitive advantage over other competitors. Moreover, these companies are constantly engaged in innovating their services to differential their offerings. In addition, companies are developing new platforms and innovative products by investing in R&D.

For example, PayPal Holding Inc., in 2018, went into partnership with Synchrony for expanding its credit relationship with consumers. Majority of the service providers are employing machine learning and artificial intelligence to improve the security and consumer experience.

 Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion, number of transactions in billion, valuation in USD Trillion, CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, Germany, U.K., China, India, Japan, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global digital payment market report based on solution, mode of payment, deployment, enterprise size, end use, and region:

• Solution Outlook (Revenue, USD Billion, 2014 - 2025)
    • Application Program Interface
    • Payment Gateway
    • Payment Processing
    • Payment Security & Fraud Management
    • Transaction Risk Management
    • Others

• Mode of Payment Outlook (Revenue, USD Billion, 2014 - 2025)
    • Bank Cards
    • Digital Currencies
    • Digital Wallets
    • Net Banking
    • Point of Sales
    • Others

• Deployment Outlook (Revenue, USD Billion, 2014 - 2025)
    • Cloud
    • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2014 - 2025)
    • Large Enterprises
    • Small & Medium Enterprises

• End Use Outlook (Revenue, USD Billion, 2014 - 2025)
    • BFSI
    • Healthcare
    • IT & Telecom
    • Media & Entertainment
    • Retail & E-commerce
    • Transportation
    • Others

• Regional Outlook (Revenue, USD Billion; Number of Transactions, Billion; Valuation, USD Trillion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa

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