Digital Payments Market Report 2026

The digital payments market size has grown strongly in recent years. It will grow from $136.88 billion in 2025 to $149.92 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to growth of smartphone usage, expansion of internet connectivity, increasing demand for cashless transactions, adoption of digital banking services, government initiatives supporting digital payments.

The digital payments market size is expected to see strong growth in the next few years. It will grow to $213.76 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to growing adoption of instant payment infrastructures, rising demand for interoperable payment systems, expansion of digital payments in emerging economies, increasing use of ai-driven fraud prevention, growing focus on financial inclusion. Major trends in the forecast period include increasing adoption of contactless payment methods, rising use of mobile wallets and qr payments, growing integration of cloud-based payment platforms, expansion of real-time payment systems, enhanced focus on secure and compliant payment processing.

A digital transformation in the banking, financial services, and insurance (BFSI) sectors is anticipated to drive the growth of the digital payment market in the future. This transformation involves the integration of digital technologies and strategies to enhance customer experiences, streamline operations, and increase competitiveness within the industry. As a result, customers can manage their accounts, conduct transactions, and initiate payments through digital channels, promoting the adoption of digital payments. For example, in January 2024, the European Central Bank, the central bank for the European Union countries based in Germany, reported that the number of contactless card payments in the first half of 2023 rose by 24.3%, reaching 20.9 billion compared to 16.8 billion in the same period of 2022, with the total value increasing by 25.9% to €0.5 trillion (approximately $545.27 billion). Consequently, the digital transformation within the BFSI sectors is expected to propel the growth of the digital payment market.

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 March 2025, Rapyd, a UK-based financial technology company, acquired PayU Global Payment Organisation for around $610 million. Through this acquisition, Rapyd seeks to strategically expand its global fintech-as-a-service presence, strengthening its card-acquiring and payment processing capabilities in major emerging markets across Latin America and Africa, while broadening its geographic reach and merchant network. PayU Global Payment Organisation is a Netherlands-based fintech company that provides e-commerce payment solutions and payment processing services to both enterprise and SMB merchants.

Major companies operating in the digital payments market 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.

Asia-Pacific was the largest region in the digital payments market in 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, 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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