Digital Payment Market by Type (Solutions & Services), Solution Type (Payment Processing, Payment Gateway, Payment Wallet, POS Solution, Payment Security and Fraud Management), Deployment Mode, Organization Size, and Region - Global Forecast to 2023
[143 Pages Report] Digital payment is the process of paying digitally for procuring a product or service. No hard cash is involved in digital payments, and transactions are conducted online. The proliferation of mobile payments and digital innovation has revolutionized digital payments with the adoption of advanced technologies, such as blockchain, machine learning, and Artificial Intelligence (AI). These technologies will make transactions more convenient and secure and are expected to provide significant opportunities for the digital payment market. Modernization of domestic traditional payments infrastructure would play an important role in the future digital payment market evolution. Growing customer needs would demand infrastructure modernization from technology players catering to the market. In addition, a lack of efficiency in cross-border payments technology would offer further growth opportunities for the market players.
The digital payment market size is expected to grow from USD 38.00 billion in 2018 to USD 86.76 billion by 202 3, at a Compound Annual Growth Rate (CAGR) of 18.0% during the forecast period. This growth is fueled by the increasing initiatives to promote digital payments across the globe, the rising proliferation of smartphones, and the increasing demand for better customer experience.
By organization size, large enterprises is estimated to hold a larger market share
Large enterprises are defined as entities with an employee strength of more than 1,000 individuals. Digital payment solutions are adopted by large enterprises, owing to the need to digitize their payment landscape, cater to the dynamic customer trends, streamline business operations, and enhance market competitiveness. Large organizations follow the omnichannel approach, as they are focused on enriching customer experience. The integration of digital payment solutions, such as digital wallets and payment processing, with the existing payment landscape of large organizations, is essential for the redemption of loyalty points and the facilitation of quick payment at POS terminals.
Payment gateway solutions subsegment expected to grow at the highest CAGR during the forecast period
Payment gateway solutions provide a virtual terminal for online transactions. These solutions help in the processing of customer payment credentials and authorizing payment between the merchant and the customer. Payment gateway solutions perform tasks that include encryption, authorization request, and order filling. Once the end-user makes the payment, the payment gateway sends the transaction data to the payment processor, which connects it to the vendor's acquiring bank. The payment processor initiates the request for authorization and forwards the request of payment to the customers issuing bank. After receiving a response from the issuing bank, the payment gateway completes the transaction between the merchant and the customer.
The digital payment market in Asia Pacific is expected to grow at the highest CAGR during the forecast period
The digital payment market in Asia Pacific is projected to grow at the highest CAGR from 2018 to 2023. This growth can be attributed to the increased demand for digital payment solutions and advancements in digital technologies benefitting all stakeholders present in the digital payment ecosystem in the Asia Pacific region. Increase in the number of mobile subscribers and feasible digital payment solutions provided by banks, Mobile Network Operators, and payment agents are additional factors contributing to the growth of the digital payment market in Asia Pacific.
Market Dynamics
Driver: Need to provide better customer experience
To succeed in the fast-changing business environment, organizations are investing in futuristic technologies to deliver better customer experiences. Digital payments provide important customer insights that are expected to help organizations in framing future strategies. Digital payments play a vital role in improving customer experience and increasing merchant revenues. The transaction data captured through digital payments provides merchants with clear customer insights and helps in improving different aspects of business, including decisions related to marketing, promotions, and customer service. The data management and payment analytics solution is a handy tool in this perspective, as the data collected through various payment devices is analyzed to derive useful information, which helps merchants in better understanding consumer behavior. Moreover, digital payments are expected to help in frictionless, responsive, and revolutionary shopping experiences for customers.
Restraint: Lack of global standards for cross-border payments
Cross-border trade has been increasing year on year as more organizations are procuring goods and services globally. But due to the lack of a single universal global payment system, lack of global standards, and different government regulations, digital payment vendors are not able to capitalize on this opportunity. Countries have different payment regulations and data storage compliances that make cross-border payments inefficient. In addition to this, the domestic payment infrastructure is not designed for cross-border payments. In addition, complex government structures and rigid payment structures add challenges in implementing cross-border payment solutions. Hence, without the establishment of global standards, the wide-scale implementation of digital payment solutions is not possible.
Opportunity: Progressive changes in regulatory frameworks
Progressive regulatory changes in the digital payment landscape are expected to help in fueling the digital payment market. Various countries are implementing merchant-friendly regulations to encourage wide-scale adoption of the digital payment platform. For instance, North America and India have recently reduced the Merchant Discount Rate (MDR). Moreover, these and various other regulations, such as the European Union (EU) Payment Services Directive 2 (PSD2), Europe SEPA (Single Euro Payments Area), PoS Cryptographic Protocol, and others aim at increasing trust among merchants and users. In the coming years, the payment industry is expected to see increasing regulations that accelerate the adoption of digital payments. Hence, progressive changes in regulatory fields are attracting and leading to increasing the demand for digital payment solutions and services among merchants and users, providing significant opportunities for vendors.
Challenge: Lack of digital literacy in emerging countries
Inclusion in the digital payment chain requires digital literacy. Most emerging countries are as yet lacking in digital literacy, which hinders the wide-scale adoption of digital payments. Digital literacy comprises a wide range of skills, such as the ability to read and technical skills that help individuals operate and use digital technologies. Most countries on the African continent have a very low digital literacy rate, and due to this, individuals are not able to exploit the potential of digital technologies. Technology vendors are also hesitant in investing due to the low number of digital transactions. Hence, low digital literacy in emerging countries is expected to slow down the growth of the digital payment market.
Scope of the Report
|
Report Metric |
Details |
|
Market size available for years |
20162023 |
|
Base year considered |
2017 |
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Forecast period |
20182023 |
|
Forecast units |
USD billion |
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Segments covered |
Type, Deployment mode, Organization Size, and Region |
|
Geographies covered |
North America, Europe, APAC, Latin America, and MEA |
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Companies covered |
ACI Worldwide (US), Aurus (US), Aliant Payment (US), Authorize.Net (US), Adyen (Netherlands), BlueSnap (US), Chetu (US), Dwolla (US), FSS (India), First Data (US), Fiserv (US), Global Payments (US), Net1 UEPS Technologies (South Africa), Novatti (Australia), PayPal (US), Paysafe (UK), PayU (Netherlands), SIX (Switzerland), Stripe (US), TSYS (US), WEX (US), Wirecard (Germany), Worldline (France), Worldpay (US), and YapStone (US) |
The digital payment market has been segmented based on type, organization size, deployment mode, and region.
By Type
- Solutions
- Services
By Deployment Mode
- On-premises
- Cloud
By Organization Size
- SMEs
- Large Enterprises
By Region
- North America
- US
- Canada
- Europe
- UK
- France
- Germany
- Rest of Europe
- Asia Pacific
- China
- India
- Rest of APAC
- Middle East & Africa
- UAE
- Israel
- Saudi Arabia
- Rest of MEA
- Latin America
- Brazil
- Mexico
- Rest of Latin America
Key Market Players
First Data, PayPal, Wirecard, Fiserv, Worldpay
Recent Developments
- In July 2018, Wirecard launched a new Payment Page Designer for online retailers and expanded its value-added services for E-commerce. The product combines ease of integration and adaptation with high levels of visual flexibility.
- In June 2018, TSYS acquired iMobile3, a Florida based provider of private-labeled, SMB solutions within the payments industry. This acquisition is expected to strengthen the companys position in the SMB market in the US.
- In May 2018, Fiserv launched the Card Risk Office Fraud Warning, an early breach detection solution in partnership with Rippleshot. This solution is expected to enable financial institutions to identify fraud events 30-60 days prior to network alerts.
- In March 2018, Chetu expanded its business operations by opening new offices in Latin America and Western Europe to gain and serve customers in Argentina, Chile, Colombia, Spain, and the Netherlands.
- In June 2017, Worldpay launched Worldpay Total, its omnichannel payment platform in the US. Worldpay Total offers end-to-end payment processing by combining POS, integrated payments, and acquiring for Integrated Software Vendors (ISVs) and merchants.
Critical questions the report answers:
- What is the analysis for each submarket with respect to individual growth trends, prospects, and contributions to the overall digital payment market?
- What are the major factors influencing the growth of the digital payment market (drivers, restraints, opportunities, and challenges)?
- Who are the key players operating in the market, and what are the factors contributing to their domination over other players?
- What are the global trends in demand for this market?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
Table of Contents
1 Introduction (Page No. - 15)
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.4 Years Considered for the Study
1.5 Currency
1.6 Stakeholders
2 Research Methodology (Page No. - 19)
2.1 Research Data
2.1.1 Breakdown of Primaries
2.1.2 Key Industry Insights
2.2 Market Size Estimation
2.3 Assumptions
2.4 Limitations
3 Executive Summary (Page No. - 26)
4 Premium Insights (Page No. - 30)
4.1 Attractive Opportunities in the Digital Payment Market
4.2 Market By Type
4.3 Market By Solutions
4.4 Market By Service
4.5 Market By Professional Services
4.6 Market By Region
4.7 Market Investment Scenario
5 Digital Payment Market Overview and Industry Trends (Page No. - 34)
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Worldwide Initiatives for the Promotion of Digital Payments
5.2.1.2 High Proliferation of Smartphones
5.2.1.3 Need to Provide Better Customer Experience
5.2.2 Restraints
5.2.2.1 Lack of Global Standards for Cross-Border Payments
5.2.3 Opportunities
5.2.3.1 Rapid Decline in Unbanked People Across the Globe
5.2.3.2 Progressive Changes in Regulatory Frameworks
5.2.4 Challenges
5.2.4.1 Lack of Digital Literacy in Emerging Countries
5.2.4.2 Cyber-Attacks Affecting Digital Payment Market
5.3 Industry Trends
5.3.1 Introduction
5.3.2 Digital Payment Architecture
5.3.3 Case Studies
5.3.3.1 Case Study 1: Direct Line Group Implemented the Worldpay Digital Payment Solution to Enhance Customer Experience
5.3.3.2 Case Study 2: Kane Boutique Used the Payscape Payment Solution to Expand Its Business
5.3.3.3 Case Study 3: American Golf Used the Worldpay Payment Solution to Implement the Omnichannel Payment Mode for Its Retail Chain
6 Digital Payment Market, By Type (Page No. - 40)
6.1 Introduction
6.2 Solutions
6.2.1 Payment Gateway Solutions
6.2.2 Payment Processing Solutions
6.2.3 Payment Wallet Solutions
6.2.4 Payment Security and Fraud Management Solutions
6.2.5 Pos Solutions
6.3 Services
6.3.1 Professional Services
6.3.1.1 Consulting Services
6.3.1.2 System Integration and Deployment Services
6.3.1.3 Support and Maintenance Services
6.3.2 Managed Services
7 Digital Payment Market By Deployment Mode (Page No. - 52)
7.1 Introduction
7.2 On-Premises
7.3 Cloud
8 Digital Payment Market, By Organization Size (Page No. - 55)
8.1 Introduction
8.2 SMEs
8.3 Large Enterprises
9 Digital Payment Market By Vertical (Page No. - 59)
9.1 Introduction
9.2 Banking, Financial Services, and Insurance (BFSI)
9.3 Telecom & Information Technology (IT)
9.4 Retail & E-Commerce
9.5 Healthcare
9.6 Media & Entertainment
9.7 Others
10 Digital Payment Market, By Region (Page No. - 61)
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.3 Europe
10.3.1 UK
10.3.2 France
10.3.3 Germany
10.3.4 Rest of Europe
10.4 Asia Pacific
10.4.1 China
10.4.2 India
10.4.3 Rest of Asia Pacific
10.5 Latin America
10.5.1 Brazil
10.5.2 Mexico
10.5.3 Rest of Latin America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Israel
10.6.4 Rest of Middle East & Africa
11 Competitive Landscape (Page No. - 80)
11.1 Overview
11.2 Market Ranking Analysis for the Digital Payment Market
11.3 Competitive Scenario
11.3.1 New Product Launches
11.3.2 Business Expansions
11.3.3 Mergers & Acquisitions
11.3.4 Agreements & Partnerships
12 Company Profiles (Page No. - 85)
(Business Overview, Products Solutions/Services Offered, Recent Developments, SWOT Analysis, MnM View)*
12.1 First Data
12.2 Paypal
12.3 Worldpay
12.4 Wirecard
12.5 Fiserv
12.6 Chetu
12.7 Total System Services (TSYS)
12.8 Novatti
12.9 ACI Worldwide
12.10 Global Payments
12.11 Bluesnap
12.12 Paysafe
12.13 Worldline
12.14 Wex
12.15 Six Payment Services
12.16 Dwolla
12.17 Stripe
12.18 Adyen
12.19 Payu
12.20 Yapstone
12.21 Net 1 UEPS Technologies
12.22 Financial Software and Systems (FSS)
12.23 Authorize.Net
12.24 Aurus
12.25 Aliant Payment Systems
* Business Overview, Products Solutions/Services Offered, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.
13 Appendix (Page No. - 137)
13.1 Discussion Guide
13.2 Knowledge Store: Marketsandmarkets Subscription Portal
13.3 Available Customizations
13.4 Related Reports
13.5 Author Details
List of Tables (63 Tables)
Table 1 United States Dollar Exchange Rate, 20152017
Table 2 Digital Payment Market Size, By Type, 20162023 (USD Billion)
Table 3 Solutions: Market Size By Type, 20162023 (USD Billion)
Table 4 Solutions: Market Size By Region, 20162023 (USD Billion)
Table 5 Payment Gateway Solutions: Market Size By Region, 20162023 (USD Billion)
Table 6 Payment Processing Solutions: Market Size By Region, 20162023 (USD Billion)
Table 7 Payment Wallet Solutions: Market Size By Region, 20162023 (USD Billion)
Table 8 Payment Security and Fraud Management Solutions: Market Size By Region, 20162023 (USD Billion)
Table 9 Pos Solutions: Market Size By Region, 20162023 (USD Billion)
Table 10 Services: Market Size By Type, 20162023 (USD Billion)
Table 11 Services: Market Size By Region, 20162023 (USD Billion)
Table 12 Professional Services: Digital Payment Market Size By Type, 20162023 (USD Billion)
Table 13 Professional Services: Market Size By Region, 20162023 (USD Billion)
Table 14 Consulting Services: Market Size By Region, 20162023 (USD Billion)
Table 15 System Integration and Deployment Services: Market Size By Region, 20162023 (USD Billion)
Table 16 Support and Maintenance Services: Market Size By Region, 20162023 (USD Billion)
Table 17 Managed Services: Market Size By Region, 20162023 (USD Billion)
Table 18 Digital Payment Market Size, By Deployment Mode, 20162023 (USD Billion)
Table 19 On-Premises: Market Size By Region, 20162023 (USD Billion)
Table 20 Cloud: Market Size By Region, 20162023 (USD Billion)
Table 21 Digital Payment Market Size, By Organization Size, 20162023 (USD Billion)
Table 22 SMEs: Market Size By Region, 20162023 (USD Billion)
Table 23 Large Enterprises: Market Size,By Region, 20162023 (USD Billion)
Table 24 North America: Market Size By Country, 20162023 (USD Billion)
Table 25 North America: Market Size By Type, 20162023 (USD Billion)
Table 26 Solutions: North America Market Size By Type, 20162023 (USD Billion)
Table 27 Services: North America Market Size By Type, 20162023 (USD Billion)
Table 28 Professional Services: North America Market Size By Type, 20162023 (USD Billion)
Table 29 North America: Digital Payment Market Size, By Deployment Type, 20162023 (USD Billion)
Table 30 North America: Market Size By Organization Size, 20162023 (USD Billion)
Table 31 Europe: Market Size By Country, 20162023 (USD Billion)
Table 32 Europe: Market Size By Type, 20162023 (USD Billion)
Table 33 Solutions: Europe Market Size By Type, 20162023 (USD Billion)
Table 34 Services: Europe Market Size By Type, 20162023 (USD Billion)
Table 35 Professional Services: Europe Digital Payment Market Size, By Type, 20162023 (USD Billion)
Table 36 Europe: Market Size By Deployment Type, 20162023 (USD Billion)
Table 37 Europe: Market Size By Organization Size, 20162023 (USD Billion)
Table 38 Asia Pacific: Market Size By Country, 20162023 (USD Billion)
Table 39 Asia Pacific: Digital Payment Market Size By Type, 20162023 (USD Billion)
Table 40 Solutions: Asia Pacific Market Size By Type, 20162023 (USD Billion)
Table 41 Services: Asia Pacific Market Size By Type, 20162023 (USD Billion)
Table 42 Professional Services: Asia Pacific Market Size By Type, 20162023 (USD Billion)
Table 43 Asia Pacific: Market Size By Deployment Type, 20162023 (USD Billion)
Table 44 Asia Pacific: Digital Payment Market Size By Organization Size, 20162023 (USD Billion)
Table 45 Latin America: Market Size, By Country, 20162023 (USD Billion)
Table 46 Latin America: Market Size By Type, 20162023 (USD Billion)
Table 47 Solutions: Latin America Market Size By Type, 20162023 (USD Billion)
Table 48 Services: Latin America Market Size By Type, 20162023 (USD Billion)
Table 49 Professional Services: Latin America Digital Payment Market Size, By Type, 20162023 (USD Billion)
Table 50 Latin America: Market Size By Deployment Type, 20162023 (USD Billion)
Table 51 Latin America: Market Size By Organization Size, 20162023 (USD Billion)
Table 52 Middle East & Africa: Market Size By Country, 20162023 (USD Billion)
Table 53 Middle East & Africa: Market Size By Type, 20162023 (USD Billion)
Table 54 Solutions: Middle East & Africa Market Size By Type, 20162023 (USD Billion)
Table 55 Services: Middle East & Africa Market Size By Type, 20162023 (USD Billion)
Table 56 Professional Services: Middle East & Africa Digital Payment Market Size, By Type, 20162023 (USD Billion)
Table 57 Middle East & Africa: Market Size By Deployment Type, 20162023 (USD Billion)
Table 58 Middle East & Africa: Market Size By Organization Size, 20162023 (USD Billion)
Table 59 Digital Payment Market Ranking, 2018
Table 60 New Product Launches, 20172018
Table 61 Business Expansions, 20162018
Table 62 Acquisitions, 20172018
Table 63 Agreements & Partnerships, 20162017
List of Figures (48 Figures)
Figure 1 Market Segmentation
Figure 2 Digital Payment Market Segmentation
Figure 3 Market: Research Design
Figure 4 Research Methodology
Figure 5 Data Triangulation
Figure 6 Digital Payment Market Size Estimation Methodology: Bottom-Up Approach
Figure 7 Market Size Estimation Methodology: Top-Down Approach
Figure 8 Market, 20162023
Figure 9 Estimated Market Shares of Leading Type, Organization Size, and Regional Segments of Market in 2023
Figure 10 Market, Regional and Country-Wise Shares, 2018
Figure 11 Growing Smartphone Penetration is Expected to Drive the Growth of the Digital Payment Market
Figure 12 Solutions Segment is Estimated to Hold A Larger Market Share During the Forecast Period
Figure 13 Payment Processing Solutions Segment is Estimated to Hold the Largest Market Share in 2023
Figure 14 Professional Services is Estimated to Hold the Larger Market Share During the Forecast Period
Figure 15 Support & Maintenance Services Segment is Expected to Hold the Largest Market Share During the Forecast Period
Figure 16 North America is Expected to Hold the Largest Market Share in 2018
Figure 17 Asia Pacific is Expected to Be the Hotspot Market to Invest in During the Forecast Period
Figure 18 Digital Payment Market: Drivers, Restraints, Opportunities, and Challenges
Figure 19 Digital Payment Architecture
Figure 20 Services Segment Expected to Grow at A Higher CAGR During the Forecast Period
Figure 21 Payment Gateway Solutions Subsegment Expected to Grow at the Highest CAGR During the Forecast Period
Figure 22 Payment Gateway Solutions
Figure 23 Payment Processing Solutions
Figure 24 Professional Services Subsegment Expected to Grow at A Higher CAGR During the Forecast Period
Figure 25 Cloud Segment Expected to Grow at A Higher CAGR During the Forecast Period
Figure 26 SMEs Segment Expected to Grow at A Higher CAGR During the Forecast Period
Figure 27 Digital Payment Market in Asia Pacific Expected to Grow at the Highest CAGR During the Forecast Period
Figure 28 North America Market Snapshot
Figure 29 Asia Pacific Market Snapshot
Figure 30 Key Developments By Leading Players in the Digital Payment Market During 20152018
Figure 31 First Data: Company Snapshot
Figure 32 First Data: SWOT Analysis
Figure 33 Paypal: Company Snapshot
Figure 34 Paypal: SWOT Analysis
Figure 35 Worldpay: Company Snapshot
Figure 36 Worldpay: SWOT Analysis
Figure 37 Wirecard: Company Snapshot
Figure 38 Wirecard: SWOT Analysis
Figure 39 Fiserv: Company Snapshot
Figure 40 Fiserv: SWOT Analysis
Figure 41 Total System Services: Company Snapshot
Figure 42 Novatti: Company Snapshot
Figure 43 ACI Worldwide: Company Snapshot
Figure 44 Global Payments: Company Snapshot
Figure 45 Worldline: Company Snapshot
Figure 46 Wex: Company Snapshot
Figure 47 Adyen: Company Snapshot
Figure 48 Net 1 UEPS Technologies: Company Snapshot
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