Digital Payment Market Size to Reach USD 120,245.9M by 2025 at 16.77% CAGR - Report by MRFR.
By Intrado GlobelNewswire
New York, US, Sept. 29, 2021 (GLOBE NEWSWIRE) -- Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Digital Payment Market information by Deployment, by Components, by Organization Size and Region – forecast to 2027” market will touch USD 120,245.9 million at a 16.77% CAGR by 2025.
Competitive Analysis: The global digital payment market is fragmented and also competitive for the presence of different international & domestic key players. These players have incorporated innovative strategies to remain at the vanguard and also suffice the burgeoning demand of the customers including collaborations, contracts, partnerships, joint ventures, geographic expansions, & new product launches, and more.
Digital Payments Market Drivers Increasing Government Initiatives to Boost Market Growth The increasing government initiatives in different countries for promoting digital payments will boost market growth over the forecast period. Digital payments help in curbing tax frauds and maintaining money trails. The Government of India for instance, in 2015 launched the Digital India initiative after demonetisation for encouraging cashless transactions in the country.
Opportunities Growing Adoption of Open-Banking APIs to offer Robust Opportunities The growing adoption of open-banking APIs will offer robust opportunities for the market in the forecast period. The open banking mechanism helps third-party service providers to access financial information securely of customers and in real-time through APIs. Through this approach, banks can offer tailor-made financial products especially payment solutions to their customers.
Restraints and Challenges Lack of Global Standards to act as Market Restraint The lack of global standards especially for cross-border payments may act as a market restraint over the forecast period.
Segmentation of Market Covered in the Research: The global digital payment market is segmented based on component, deployment, organization size, and vertical.
By component, the solutions segment will lead the market over the forecast period. Digital payment security & fraud management solutions incorporate innovative security features like tokenization and biometric authentication to reduce threats related to chargebacks and scams.
By deployment, the on-premise segment will dominate the market over the forecast period as on-premise deployment of digital payment solutions offers organizations with absolute control over systems and applications that can be managed easily by the organization’s IT staff.
By organization size, the large enterprises will spearhead the market over the forecast period.
By vertical, the BFSI segment will have the lions share in the market over the forecast period. An increase in remittances to middle and low income countries is likely to be a key factor to generate new opportunities for marker growth in the forecast period.
Regional Analysis North America to Spearhead Digital Payment Market North America will spearhead the market over the forecast period and at a 17.50% CAGR. The existence of large number of digital payment solution providers, the spreading out of the mobile commerce industry, the developed digital economy, customer willingness, reliable broadband and network infrastructure, inclination for cashless payments and banking economy broadly contributing to the higher rate of cashless transactions in the country, the increasing deployment of smart parking meters, technology enhancements in these meters, increasing proliferation of smartphones allowing e-commerce, rise in the eCommerce sales, growth in internet penetration, the preferred payment mode being cash or debit/credit cards, the presence of the best financial institutions in the world, users preference for online banking for its policy and security, and different strategies applied by digital payment providers are adding to the global digital payment market growth in the region.
Asia Pacific to Have Admirable Growth in Digital Payment Market The APAC region will have an admirable growth in the market over the forecast period. Increasing use of smartphones, rapid growth of ecommerce industry, rising disposable income, and favorable government policies are adding to the digital payment market growth in this region. India and China collectively account for about 70% e-wallet users worldwide.
COVID-19 Impact on the Global Digital Payment Market The global digital payments market is likely to boom in sectors like online gaming, OTT media like Amazon Prime, YouTube, and Netflix, online food delivery or grocery purchase apps like Doordash, Amazon, Instacart, and meeting and video streaming apps like ZOOM Cloud Meetings, Skype, Huawei Cloud WeLink, in the first half of 2020, while sectors like restaurants, theatres, malls/retail, travel and hospitality, airlines are facing negative impact due to the COVID-19 outbreak. According to the WHO recommendations, the government of India has urged citizens in using contactless and non-cash modes of payment like BBPS, UPI, IMPS, and NEFT and has also ensured the facilitation of fund transfers, buying of services/goods, and payment of bills. Due to COVID-19 there has been a rise on online/digital payment transactions in India. Most retailers and stand-alone shops have been forced in shutting their brick and mortar stores and exclusively sell through online channels.