Digital Payments Market Report 2024

The digital payments market size has grown strongly in recent years. It will grow from $115.93 billion in 2023 to $126.47 billion in 2024 at a compound annual growth rate (CAGR) of 9.1%. The growth witnessed in the historical period can be ascribed to robust economic expansion in emerging markets, heightened internet penetration, government initiatives in developing economies, increased prevalence of e-commerce, and greater accessibility of mobile devices.

The digital payments market size is expected to see strong growth in the next few years. It will grow to $180.26 billion in 2028 at a compound annual growth rate (CAGR) of 9.3%. The anticipated growth in the forecast period can be attributed to the rise of smart cities, government initiatives promoting digital payments, the expansion of the Internet of Things (IoT), increased adoption of 5G networks, enhanced internet penetration, and the impact of COVID-19. Key trends expected in the forecast period include the provision of digital wallet services to enhance customer convenience, the introduction of wearable payment devices for expedited payments, investments in QR-based payment technologies to cater to a broader audience, the establishment of robust contactless payment options, investments in AI solutions to improve efficiency, the exploration of blockchain technologies for interoperable, efficient, affordable, and accessible financial systems, and the implementation of payment solutions in fuel stations to reduce operational costs.

The digital payment market is expected to be driven by quick onboarding and user-friendly experiences. Individuals seek flexibility, transparency, and seamless onboarding processes, with a preference for frictionless methods. Software innovators such as Square and PayPal are leveraging automation to reduce onboarding time to just a few minutes, enhancing the attractiveness of digital payment methods. Compared to traditional approaches, digital payments are more user-friendly, requiring only a bank account or phone number and a smartphone with internet access. For example, recent data from Taiwan's government indicates that nearly 10 million out of a population of approximately 23 million are mobile payment users, showcasing the ease of adoption that contributes to the market's growth.

Anticipated growth in the digital payment market is driven by a digital transformation within the banking, financial services, and insurance sectors. This transformation involves integrating digital technologies and strategies to improve customer experiences, streamline operations, and enhance competitiveness. By enabling customers to manage accounts, conduct transactions, and initiate payments through digital channels, this transformation promotes the use of digital payments. A report by Alkami Technology Inc. in May 2023 highlighted a significant increase in digital transformation investments among mid-size banks and credit unions, reaching nearly $425,000 per $1 billion in assets in fiscal year 2022, compared to $200,000 per $1 billion in assets in fiscal 2021. Additionally, the adoption of peer-to-peer payments among digital banking users increased from 12% to 25% in 2022. Therefore, the ongoing digital transformation in the banking, financial services, and insurance industries is poised to propel the growth of the digital payment market.

Contactless payment technology is experiencing significant growth in the digital payment market, with users increasingly favoring secure and convenient options such as mobile wallets and contactless cards. Utilizing technologies such as radio frequency identification (RFID) or near-field communication (NFC), contactless payment facilitates secure transactions among users. In 2021, mobile payments transaction volume surged to $1.7 billion, marking a 27% increase compared to 2020.

Major players in the digital payment market are embracing innovative solutions, including voice recognition technology-based offerings such as 123 UPI, to maintain their market positions. 123 UPI, introduced by Ubona Technologies in February 2023, is a speech recognition-based payment solution that enhances digital payment accessibility in various Indian languages through any type of phone. This innovation aims to cater to a diverse audience, making digital transactions more user-friendly and inclusive.

In August 2022, Razorpay, an India-based fintech startup, acquired 80% of Ezetap for an undisclosed amount. This strategic acquisition is expected to fortify Razorpay's digital payments infrastructure, enhancing its ability to serve customers effectively. Ezetap, based in India, is a digital payments startup contributing to the evolving landscape of digital transactions.

Major companies operating in the digital payments market report are Paypal Holdings Inc., Ant Group, Amazon.com, Inc., Visa Inc., Apple Inc., Google Pay, Mastercard Incorporated, JP Morgan Chase & Co., Fiserv Inc., ACI Worldwide Inc., PayUmoney, Paytm, CCAvenue, Razorpay, Instamojo, Cashfree, Line Pay, Rakuten Pay, Origami Pay, D-barai, AliPay, WeChatPay, UnionPay, 99Bill, PayEase, Worldpay, Stripe, Shopify Payments, Opayo, Adyen, SystemPay International, Novalnet, Wirecard, Sberbank Online, Yandex Money, QIWI, WebMoney, Tinkoff Bank, Cielo, Rede, Getnet S, toneCo, GlobalCollect, Lyra Network, Paybox Services, CASHU, Trriple, Monami Tech, DPO Group, MTN Group Limited, Flutterwave, M-Pesa, Coruscate’s Alexpay, Digipay, Software Group, Kineto.

Digital payments, a mode of payment that utilizes digital mediums such as the internet, mobile phones, and automated devices, facilitate the transfer of money between parties. Both the payer and the payee must employ digital means for sending and receiving money, although it is not mandatory for the payee to use a digital medium in certain situations.

The primary categories within the digital payments market include point of sale and online sales, with online sales encompassing product sales and online payments. Deployments are categorized as cloud-based and on-premise, catering to both large enterprises and small and medium enterprises. These services find applications in various sectors such as retail, banking and financial services, telecommunications, government, transportation, and others.

The digital payments market research report is one of a series of new reports that provides digital payments market statistics, including digital payments industry global market size, regional shares, competitors with digital payments market share, detailed digital payments market segments, market trends and opportunities, and any further data you may need to thrive in the digital payments industry. The digital payments market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Asia-Pacific was the largest region in the digital payments market in 2023. Western Europe was the second largest region in the digital payments market report. The regions covered in the digital payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the digital payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The digital payments market consists of revenues earned by entities that are engaged in facilitating payment transfers through digital medium such as the internet, cell phones and automated devices. The payments industry consists of establishments primarily engaged in processing money transfers and payments between various accounts. This includes all institutions involved in payment processing such as banks, non-banking financial institutions, and others. Revenue generated from the payments market includes all the processing and services fees levied by the banks and financial institutions for payment processing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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