Digital Payment Market Analysis Report By Solution, By Mode of Payment, By Deployment, By Enterprise Size, By End Use, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global digital payment market size was accounted for USD 43.5 billion, in 2018. It is estimated to attain a CAGR of 17.6% over the forecast period, 2019-2025. This growth is attributed to the rising penetration of smartphones and the internet across the globe. Moreover, the availability of a large number of digital payment platforms is anticipated to drive the growth of the market. In addition, the rising number of government initiatives for digitization is the key factor driving the growth of this market. For example, the Digital India campaign launched by the government of India focuses on encouraging people to go cashless by using various digital payment platforms and mobile applications.

Digitalization is driving the emergence of various digital payment platforms. Moreover, rising penetration of the internet, e-commerce platforms, and increasing use of e-wallets for payment is anticipated to further proliferate the market growth. In addition, the rising need for providing high-end customer supports at the terminal of Point of Sales is projected to augment the market growth over the forecast period.

Programmers are striving to develop secured and safe digital payment gateways which are projected to propel the growth of the market. Moreover, increasing technological advancements such as artificial intelligence, blockchain technology, and IoT is expected to boost market growth.

Moreover, high convenience and easy accessibility offered by digital payment platforms are expected to boost their popularity among large consumer groups. Moreover, improved reliability and security over conventional payment options are the factors anticipated to propel the growth of various digital payment services. Furthermore, programmers and developers are implementing certain technologies to enhance the security of such payment portals and to minimize the number of frauds.

The transaction system featured by such digital payment portals is real-time, personalized, and agile. These portals are designed using blockchain technology, Application Program Interface technology, and mobile wallets. Such technologies help in enhancing the user experience. Further, rising incidences of fraud and cybercrimes are projected to hinder market growth from 2019 to 2025.

Solution Insights

In 2018, the segment of payment processing held the largest digital payment market share. This is attributed to increasing campaigns that promote digital and online transactions. Moreover, the rising adoption of this segment across the end-use industries for minimizing the time consumed for processing of payments and cost of administration. In addition, these solutions are faster than traditional payment methods and help in streamlining the transactions. Furthermore, the rising penetration of Visa, Europay, and MasterCard across the developing and developed regions is projected to augment the growth of the payment processing segment.

The segment of payment gateway is projected to attain the fastest growth from 2019 to 2025 owing to several factors including the rising trend of cashless transactions, the emergence of the token systems, and cash pooling. Gateways ensure the security of merchant and consumer data by utilizing industry standards and encryptions. These factors are expected to proliferate the growth of the segment over the forecast period.

Mode of Payment Insights

In 2018, the Point of Sales segment held the largest market share due to various advantages such as high accuracy, efficiency, and easy usage. Moreover, the POS terminal helps in keeping the record of multiple transactions by streamlining the process of accounting. In addition, quick acceptance of multiple transactions by the POS terminal through mobile wallets, contactless payment, and EMV chip cards is projected to further boost the popularity of the segment among the large consumer group.

The segment of digital wallets is projected to attain the fastest growth from 2019 to 2025 owing to the rising popularity of e-commerce portals and online purchases among consumers across the globe. Moreover, these wallets are easy to use. Additionally, they are considered to be the most secure way of digital transactions. This is projected to augment the growth of the segment over the forecast period.

Deployment Insights

On the basis of deployment, the market for digital payment is divided into on-premise and cloud-based deployment. The cloud-based deployment segment is projected to attain the fastest CAGR from 2019 to 2025. It consists of the configuration which enables centralized transactions. It helps in optimizing the operational costs and capital expenses. The majority of organizations prefer cloud-based deployment solutions owing to their easy accessibility. These factors are expected to boost the growth of the segment in the forthcoming years.

In 2018, the on-premise segment held the largest market share due to the availability of customized solutions that fulfills specific requirements of clients. Moreover, this software can be operated without internet connectivity. These features are anticipated to impact positively on the market growth from 2019 to 2025.

Enterprise Size Insights

The market is categorized into small and medium enterprises and large enterprises on the basis of enterprise size. The majority of the large enterprises prefer digital payment platforms to offer high convenience, easy execution, improved user experience, and high administrative visibility. Moreover, these platforms improve the domestic as well as international exposure of organizations. This is further projected to boost the demand for digital payment services across the large enterprise segment.

The segment of SMEs is projected to attain notable growth from 2019 to 2025 due to the rising number of new entrants entering the market across the globe. In addition, various governments are launching campaigns to promote digital payment platforms for small and medium enterprises. This is projected to propel the segment’s growth from 2019 to 2025.

End-Use Insights

The market is categorized into healthcare, transportation, BFSI, IT and telecom, retail and e-commerce, media and entertainment, and others on the basis of end-use. The segment of BFSI held the largest market share in 2018 owing to the rising adoption of e-payment platforms. Moreover, rising digitalization across financial institutions and banks is projected to further augment the growth of the BFSI segment in the forthcoming years. In addition, the growing popularity of e-wallets, mobile banking, and personal finance management are projected to contribute to the growth of the segment.

The segment of e-commerce and retail is projected to grow at the fastest CAGR from 2019 to 2025 owing to the simplification of buying process by mobile wallets and e-wallets supported by the majority of the e-commerce platforms. In addition, factors such as easy payment options and penetration and adoption of smartphones and mobile wallets are projected to further fuel the segment’s growth over the forecast period.

Regional Insights

In 2018, North America held the largest share across the global digital payments market owing to the presence of leading providers of digital payment services. Moreover, the rising penetration of e-commerce platforms and digitalization across the region are the factors propelling the regional market growth. In addition, the rising adoption of cashless transactions in Canada owing to the presence of strong digital infrastructure and customer willingness is anticipated to further contribute to regional growth.

Asia Pacific is projected to attain the fastest CAGR across the global market from 2019 to 2025 owing to rising government campaigns that promote usage of digital payment portals and propagation of digitalization. Moreover, the rising number of SMEs and new entrants entering the regional market is projected to propel market growth in the Asia Pacific. Furthermore, the rising penetration of the e-commerce industry and the availability of a large consumer base in India are anticipated to impact the regional market growth.

Digital Payment Market Share Insights

Leading players operating in this industry are Wirecard AG; Total System Services, Inc.; Novetti Group Limited; ACI Worldwide Inc.; Adyen N.V.; and PayPal Holdings Inc. These players are focusing on various strategic initiatives like M&A, strategic partnerships, and collaborations for gaining a competitive advantage over other competitors. Moreover, these companies are constantly engaged in innovating their services to differential their offerings. In addition, companies are developing new platforms and innovative products by investing in R&D.

For example, PayPal Holding Inc., in 2018, went into partnership with Synchrony for expanding its credit relationship with consumers. The majority of the service providers are employing machine learning and artificial intelligence to improve the security and consumer experience.

 Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global digital payment market report based on solution, mode of payment, deployment, enterprise size, end-use, and region:

• Solution Outlook (Revenue, USD Billion, 2014 - 2025)
    • Application Program Interface
    • Payment Gateway
    • Payment Processing
    • Payment Security & Fraud Management
    • Transaction Risk Management
    • Others

• Mode of Payment Outlook (Revenue, USD Billion, 2014 - 2025)
    • Bank Cards
    • Digital Currencies
    • Digital Wallets
    • Net Banking
    • Point of Sales
    • Others

• Deployment Outlook (Revenue, USD Billion, 2014 - 2025)
    • Cloud
    • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2014 - 2025)
    • Large Enterprises
    • Small & Medium Enterprises

• End-Use Outlook (Revenue, USD Billion, 2014 - 2025)
    • BFSI
    • Healthcare
    • IT & Telecom
    • Media & Entertainment
    • Retail & E-commerce
    • Transportation
    • Others

• Regional Outlook (Revenue, USD Billion; Number of Transactions, Billion; Valuation, USD Trillion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa