Digital Payments Market Report 2025

The digital payments market size has grown strongly in recent years. It will grow from $125.94 billion in 2024 to $137.43 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to strong economic growth in emerging markets, increased internet penetration, government initiatives in developing economies, rising penetration of e-commerce and increased availability of mobile devices.

The digital payments market size is expected to see strong growth in the next few years. It will grow to $198.99 billion in 2029 at a compound annual growth rate (CAGR) of 9.7%. The growth in the forecast period can be attributed to the increasing smart cities, government initiatives for digital payments, internet of things (IoT), increasing adoption of 5G networks, increase in internet penetration and COVID-19. Major trends in the forecast period include offering digital wallet services to increase convenience for customers, offering wearable payment devices for quicker payments, investing in QR based payments technologies, making robust contactless payment, investing in AI solutions, investing in blockchain technologies, efficient, affordable and accessible financial systems and 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.

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.

Contactless payment technology is experiencing significant growth in the digital payment market. An increasing number of users are choosing contactless payment methods, such as mobile wallets and contactless cards, due to their enhanced security and convenience. This technology utilizes radio frequency identification (RFID) or near-field communication (NFC) to facilitate the transmission of amounts between users. In 2023, the transaction volume for mobile payments reached $1.4 trillion, marking a 28.5% increase compared to 2022.

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 include 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 2024. 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.

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.

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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