Payments Market Report 2025

The payments market size has grown strongly in recent years. It will grow from $716.31 billion in 2024 to $783.02 billion in 2025 at a compound annual growth rate (CAGR) of 9.3%. The growth in the historic period can be attributed to e-commerce growth, globalization and cross-border transactions, digitalization of financial services, consumer convenience and speed, regulatory changes and compliance.

The payments market size is expected to see strong growth in the next few years. It will grow to $1.11 trillion in 2029 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to contactless and mobile payments adoption, rise of digital currencies and cbdcs, financial inclusion initiatives, open banking and APIs, cybersecurity and fraud prevention. Major trends in the forecast period include buy now, pay later services, cross-border and international payments, open banking and api integration, subscription-based payment models, regulatory initiatives and compliance.

The growth of the payments market is expected to be driven by the increase in contactless payments. Contactless payments involve transactions made with a debit card, credit card, smartphone, or wearable device, requiring only a tap or wave near a payment terminal. The rise in contactless payments is attributed to their convenience, higher spending limits, hygiene benefits, broad acceptance, technological improvements, and enhanced security. These payments simplify transactions within the payments industry by enabling quick, secure purchases with a tap, boosting convenience, and reducing cash dependency. For example, in July 2024, UK Finance, a UK-based trade association, reported that in 2023, the UK saw 18.3 billion contactless payments, a seven percent increase from the 17 billion recorded in 2022. Therefore, the increase in contactless payments is fueling the expansion of the payments market.

The expansion of the E-commerce sector is anticipated to propel the growth of the payments market in the forecast period. E-commerce, the online buying and selling of goods and services, has reshaped the payments market by enhancing accessibility, introducing alternative payment methods, reducing transaction costs, providing convenience, and boosting revenue for businesses. As per February 2023 data from Forbes, a US-based business magazine, E-commerce sales are forecasted to grow by 10.4% in 2023, with 20.8% of retail purchases expected to occur online in the same year. Consequently, the extensive reach of the COVID-19 is predicted to drive the contactless growth of the payments market in the forecast period.

The adoption of biometric authentication technology in payments is a prominent trend gaining traction in the payments market. Biometric authentication combines accuracy, efficiency, and security in a single payment method. Various authentication methods include fingerprint scanners, facial recognition, iris recognition, pulse tracking, and venous mapping. For example, in January 2022, Apple Inc., a US-based company in the payments sector, introduced iOS 15.4 beta with periocular biometrics, enabling Face ID usage with a mask and without an Apple Watch for biometric authentication.

The incorporation of QR and contactless card acceptance technology into payments is another significant trend on the rise in the payments market. Devices supporting QR and card acceptance enable merchants to accept payments using QR codes and contactless cards. These portable devices find applications in various settings such as retail stores, restaurants, and food stalls. For instance, in September 2023, Pine Labs, an India-based merchant platform, launched the Mini QR-first device with card acceptance. This device prioritizes QR code payments linked to UPI, a popular method in India, providing merchants with a versatile solution to cater to a broader customer base. Pine Labs Mini also facilitates contactless payments via credit and debit cards, enhancing its adaptability.

In April 2023, PureSoftware, an India-based software products and digital services company, formed a partnership with Liveplex, a US-based company specializing in assisting businesses in transitioning to Web 3 through API integration. This collaboration enables PureSoftware to offer its customers benefits such as transparency, traceability, data security, digital asset safeguarding, and interoperability. By incorporating Web 3 capability into its Arttha wallet, this partnership simplifies the process for customers to establish a Web 3 presence, ensuring robust security, data integrity, and cost-effectiveness.

Major companies operating in the payments market include Amazon Payments Inc., Apple Inc., Google Pay Inc., Samsung Electronics Co. Ltd., Industrial and Commercial Bank of China Limited, Alipay Co. Ltd., JPMorgan Chase & Co., Bank of America, National Merchants Association, Citibank, Wells Fargo and Company, American Express Company, Capital One Financial Corporation, Visa Inc., PayPal Holdings Inc., Flagship Merchant Services, Mastercard Inc., Fiserv Inc., Square Inc., Fidelity National Information Services Inc., Stripe Inc., Global Payments Inc., Payline Data Services LLC, Worldline SA, Adyen N.V., ACI Worldwide Inc., X-Payments, First Data Corporation, Bitpay Inc., Braintree Technology solutions LLC, GoCardless Ltd.

Asia-Pacific was the largest region in the payments market in 2024. Western Europe was the second largest region in the global payments market share. The regions covered in the payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Payment instruments are mechanisms facilitating the transfer of funds from accounts held at credit, payment, or comparable institutions to a payee upon receipt of a payment order.

The primary payment types encompass credit transfer, direct debit, check payment, and cash deposit. Credit transfer involves the transfer of credit from one account to another. Various applications for credit transfer are utilized by banks, non-banking financial institutions, and other entities. These applications cater to a diverse range of end users, including retail, banking and financial services, telecommunications, government, transportation, and others.

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

The payments market consists of revenues earned by entities that are engaged in facilitating payment transfers between individuals, companies, or both. 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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