The Global Digital Payments Market Growth, COVID-19 impact and Forecast (2021-2025)
Global digital payment market is segmented based on Mode of payment as point of sale and online sale; based on end user as retail, BFSI, healthcare, IT & telecom, government and others; based on geography as APAC, Europe, North America, and ROW.
Introduction
Digital payment is any payment or transaction made digitally. In this method, the payer as well as the payee both use the electronic mode for sending and receiving money, no hard cash is used between them.
Sometimes it is not mandatory in some cases for the payee to participate digitally for the transaction to be fulfilled. Users can transfer money to the payee’s account by net banking, where the payee needs not have a net banking account to receive the money.
Digital payment has helped people in many ways by making their payment flexible as well as secure enough than any other mode of transaction. Customers need not to carry cash with them all the time.
Banking card, USSD, UPI, mobile wallets, internet banking, and mobile banking are different digital payment methods which play a key role in the global digital payment market growth
Table of Contents
Market Overview
The global digital payment market is expected to grow to $154.03 billion by 2025 at a CAGR of 14.2%
Total transaction value in the Digital Payments segment is projected to reach US$6,685,102m in 2021.
People are using digital payment options to avoid contact and spread of infection through direct cash handling and also to adhere to social distancing to curb the spread of Covid-19.
A large share of the population in the developing economies of Asia, Africa, and Latin America has also been underbanked until the rise of mobile payment.
Key Trends
The Government of India has launched various initiatives to help promote digital payments. Initiatives such as Digital India, the launch of Unified Payments Interface (UPI), and 14444-helpline number which will act as catalysts in the shift towards digital payments.
Retail stores and services across the world are rapidly adopting and integrating mobile payment applications, such as PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay, to accept payments.
Key Market Players
The competitive rivalry in the market is high, as a good number of players prevail. The market is dominated by global vendors like PayPal, Visa, Global Payments, Adyen, Alphabet and Mastercard.
Growth Drivers and Challenges
Rise in number of e-commerce sales worldwide is one of the major factors driving the digital payment market growth in recent days.
Increase in number of developments in mobile payment technology, increased use of mobile wallets to make payments and development of secure & safe payment gateways are the major factors that has driven the growth of the digital payment market.
Cyberattacks are a major roadblock in the market growth of digital payment solutions. These attacks are the most critical challenges that the payment industry has been long facing. The increasing adoption of digital payment technologies is also leading to a rise in cybersecurity risks, such as cyber thefts and frauds.
Due to the lack of global payment systems providing ease of use, lack of global standards, and different government regulations in various countries, digital payment vendors are unable to capitalize on the cross border trade opportunity.
The outbreak of COVID-19 has significantly impacted operations in a few key sectors, such as manufacturing, logistics, hospitality, transportation, healthcare, and retail, and moderately impacted a few sectors that include IT and telecom, energy and utilities, government, education, and BFSI.