Digital Payment Market by Offering (Solutions (Payment Processor, Payment Gateway, Payment Wallet, POS Solution), Services (Professional and Managed), Transaction Type (Domestic and Cross Border), Payment Mode, Vertical & Region - Global Forecast to 2028
Digital Payments Market Size - Global
[357 Pages Report] The Digital Payment Market size as per revenue was surpassed $111.2 billion in 2023. Throughout the projection period, the digital payments industry is anticipated to increase at a CAGR of 11.8% in between 2023-2028 to reach a value around $193.7 billion in 2028.
The rise in the adoption of contactless payments will drive the digital payment market. Contactless payment technologies such as Near-Field Communication (NFC), Host Card Emulation (HCE), and Radio Frequency Identification (RFID) ensure faster transactions with the touch-and-go process. Consumers across the globe can now enjoy the ease, speed, and convenience of contactless payments for small, frequent transactions using mobiles, cards, rings, and wristbands. Contactless payments also help reduce customer queues and hassles and provide better results through higher revenue for retailers.
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Digital Payments Market Growth Dynamics
Driver: Rise of e-commerce and adoption of embedded payments platform
Online retail and e-commerce growth is driving increased demand for digital payment solutions. These digital payment methods offer convenience, security, and efficiency, making them essential for facilitating online shopping. They streamline checkout processes, support global transactions, enhance security, and play a vital role in mobile commerce (M-commerce). Additionally, digital payments provide valuable transaction data for businesses to personalize marketing and improve customer experiences. Overall, online retail and e-commerce are closely linked to the growing adoption of digital payment methods in the digital age.
Restraint: Lack of global standards for cross-border payments
Cross-border trade has seen consistent year-on-year growth, with organizations increasingly sourcing goods and services from around the world. Despite this opportunity, digital payment providers face challenges in capitalizing on this trend. The hurdles include the absence of global payment systems that offer user-friendly experiences, the absence of universal standards, and varying government regulations in different countries. Each country has its own unique payment regulations and data storage requirements, resulting in inefficiencies for cross-border payments. Furthermore, domestic payment infrastructures are often tailored for purposes other than facilitating cross-border transactions. The lack of a globally standardized framework for cross-border payments creates numerous challenges in international finance. It results in complex and inefficient processes, high transaction costs, inconsistent user experiences, compliance difficulties, limited financial inclusion, slow transaction processing, security risks, trade barriers, limited innovation, and a lack of transparency. Various initiatives are working toward establishing global standards to address these issues, but achieving consensus and widespread adoption remains a complex and ongoing process with the ultimate aim of making cross-border transactions more accessible, cost-effective, and secure worldwide.
Opportunity: Rapid decline in unbanked population across the globe
A large population across the globe lives in rural and remote regions. This population needs connectivity and digital literacy. Today, governments, development organizations, and private sector players recognize the importance of financial services for a large population living in rural and remote regions. The rapid decrease in unbanked individuals presents a significant opportunity for digital payment providers. With a larger customer base, increased adoption of digital payments, reduced reliance on cash, and support from financial inclusion initiatives, digital payment vendors can expand their market, foster innovation, and benefit from economic growth. This trend also enables them to gather valuable data, cross-sell additional services, and enhance security while contributing to financial inclusion efforts.
Challenges: Evolving cyber-attacks on digital payments
Digital payment solutions encompass many technology-driven tools and platforms that facilitate electronic transactions. These solutions enable individuals and businesses to transfer funds and conduct value exchanges without needing physical currency. Examples of digital payment solutions include mobile wallets, online banking, credit and debit card payments, peer-to-peer (P2P) transfers, and cryptocurrency transactions. They have gained popularity due to their convenience, speed, and accessibility and are employed for various purposes, including online shopping, bill settlement, fund transfers, and in-person purchases. In the digital era, these solutions have fundamentally transformed financial transactions, enhancing efficiency and security.
Digital Payment Market Ecosystem
Prominent companies in this market include a well-established, financially stable provider of the Digital Payment market. These companies have innovated their offerings and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include PayPal (US), Fiserv (US), FIS (US), Global Payments (US), Square (US), Stripe (US), VISA (US), Mastercard (US), Worldline (France), Adyen (Netherlands), and ACI Worldwide (US).
By Transaction Type, the domestic segment is expected to hold the largest market size during the forecast period.
A domestic digital payment solution is a specialized financial technology service designed for use within a specific country or region. These solutions are tailored to local needs, supporting the local currency and complying with regional financial regulations. They often integrate with local banks, aim for widespread adoption among consumers and businesses, and prioritize security and customer support. Transactions within a single country typically use the national currency, simplifying the process and eliminating the need for currency conversion. Moreover, domestic digital payments are generally faster and more efficient than cross-border transactions. Transaction fees are often lower for domestic payments as they do not involve international intermediaries or currency exchange costs.
By Vertical, the media & entertainment segment is expected to grow with the highest CAGR during the forecast period.
Media and entertainment are among the fastest-growing verticals worldwide, as several users access media portals and entertainment content over mobile devices. The growth of this vertical is fueled by the expansion of the smartphone market and the availability of high-speed and affordable data services. This vertical is undergoing a major transformation in the way in which media content is made accessible to customers. While print media and electronic media continue to be the prevailing traditional methods in the media and entertainment vertical, the availability of digital media content over mobile devices enabled by the internet is increasing rapidly.
By solution, the payment wallet segment is expected to grow with the highest CAGR during the forecast period.
The payment wallet segment is a vital and rapidly expanding component of the digital payment market. Payment wallets, typically accessed via mobile apps, allow users to store, manage, and conduct various financial transactions digitally. They support diverse transactions, offer security features, and can link to multiple payment methods. Payment wallets are often used for in-store and online purchases, bill payments, and peer-to-peer transfers. They contribute to financial inclusion, foster competition, and comply with financial regulations. While global players like Apple Pay and Google Pay dominate, regional providers also cater to specific markets. Payment wallets play a crucial role in modern digital finance.
Based on region, Asia Pacific is expected to have the highest growth rate during the forecast period.
Asia Pacific exhibits a notable propensity for technology adoption and is poised to achieve the highest growth rate in the Digital Payment market in the coming years. The Digital Payment market within the Asia Pacific region encompasses China, Japan, India, and other countries in the region. The Asia-Pacific (APAC) region is experiencing a surging demand for digital payment solutions due to several factors. Rapid economic growth, widespread smartphone adoption, a tech-savvy population, the e-commerce boom, government initiatives, international trade, urbanization, fintech innovation, and a focus on financial inclusion are all contributing to this demand. APAC's dynamic economies and the growing need for convenient and secure financial transactions are driving the adoption of digital payment methods, making the region a hotspot for digital payment innovation and expansion.
Digital Payment Companies:
The major Digital Payments companies are PayPal (US), Fiserv (US), FIS (US), Global Payments (US), Square (US), Stripe (US), VISA (US), Mastercard (US), Worldline (France), Adyen (Netherlands), ACI Worldwide (US), Temenos (Switzerland), PayU (Netherlands), Apple (US), JPMorgan Chase (US), WEX (US), FLEETCOR (US), Aurus (US), PayTrace (US), Stax by FattMerchant (US), Verifone(US), Spreedly (US), Dwolla (US), BharatPe (India), Payset (UK), PaySend (UK), MatchMove (Singapore), Ripple (US), and EBANX (Brazil). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, product enhancements, and acquisitions to expand their footprint in the Digital Payment market.
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Report Metrics |
Details |
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Market size available for years |
2018–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) Million/Billion |
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Segments Covered |
By Offering (Solutions (Payment Gateway, Payment Processors, Payment Wallet, Point of Sale, and Other Solutions), Services (professional services (Consulting, Implementation, Support & Maintenance), Managed Services), By Transaction Type (Domestic and Cross Border), Payment Mode (Cards, Digital Wallet, ACH Transfer), By Vertical (BFSI, Retail & E-commerce, Healthcare, Travel & Hospitality, IT & ITeS, Telecom, Transportation & Logistics, Media & Entertainment, Other Verticals) |
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Geographies covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
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Companies covered |
PayPal (US), Fiserv (US), FIS (US), Global Payments (US), Square (US), Stripe (US), VISA (US), Mastercard (US), Worldline (France), Adyen (Netherlands), ACI Worldwide (US), Temenos (Switzerland), PayU (Netherlands), Apple (US), JPMorgan Chase (US), WEX (US), FLEETCOR (US), Aurus (US), PayTrace (US), Stax by FattMerchant (US), Verifone(US), Spreedly (US), Dwolla (US), BharatPe (India), Payset (UK), PaySend (UK), MatchMove (Singapore), Ripple (US), and EBANX (Brazil) |
The study categorizes the Digital Payments Market based on offering, transaction type, and vertical at the regional and global levels.
Digital Payments Market by Offering
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Solutions
- Payment Gateway Solutions
- Payment Processor Solutions
- Payment Wallet Solutions
- Point of Sale (POS) Solutions
- Other Solutions
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Services
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Professional Services
- Consulting
- Implementation
- Support and Maintenance
- Managed Services
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Professional Services
Digital Payment Industry By Transaction Type
- Domestic
- Cross Border
Digital Payment Industry By Payment Mode
- Cards
- ACH Transfer
- Digital Wallet
- Other Payment Modes
Market By Vertical
- BFSI
- Retail & E-commerce
- IT & ITeS
- Telecom
- Healthcare
- Travel & Hospitality
- Transportation & Logistics
- Media & Entertainment
- Other Verticals
Digital Payments Market By Region
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North America
- US
- Canada
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Europe
- UK
- Germany
- Italy
- Spain
- France
- Rest of Europe
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Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- Rest of Asia Pacific
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Latin America
- Brazil
- Mexico
- Rest of Latin America
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Middle East & Africa
- UAE
- South Africa
- KSA
- Rest of MEA
Recent Developments in Digital Payments Market
- In April 2023, the new version of PayPal Payment Solution provided acceptance of PayPal payments with Apple Pay, save payment methods with PayPal Vault, and real-time account updater.
- In April 2023, Square launched Tap to Pay on Android for sellers in the UK. The new technology empowers sellers to securely accept contactless payments with a compatible Android device at no additional cost and without any need for additional hardware.
- In September 2022, the introduction of Worldpay for Platforms merged FIS' extensive merchant and banking solutions into a single platform, incorporating embedded payments technology.
- In February 2022, FIS acquired Payrix. The acquisition positioned FIS to strengthen embedded payments and finance experiences specifically tailored for small- and medium-sized businesses across diverse industries.
- In January 2022, PayPal and Salesforce extended their partnership, offering accelerated access to PayPal’s checkout solutions via the PayPal Commerce Platform to global enterprise merchants who integrate through Salesforce Payments.
Frequently Asked Questions (FAQ):
What is Digital Payments?
Digital payments is an umbrella term that encompasses a range of technologies used in different payment instruments that enable payments through digital modes. The digital payment market covers all the solutions and services that incorporate digital payment technologies.
What is the future for Digital Payments?
The global Digital Payments market size was valued $111.2 billion in 2023 and is anticipated to reach $193.7 billion by 2028, projecting a CAGR of 11.8% during the forecast period.
What are the key drivers for Digital Payments Market Growth?
The major driver of the Digital Payment market is the high proliferation of smartphones enabling m-commerce growth. The increasing penetration of smartphones is one of the major growth enablers for the digital payment market. Countries such as India, Indonesia, South Africa, and China have seen high growth in smartphone sales in the last few years. The increased number of smartphones has increased mobile commerce. The increasing number of smartphone users compels the banking and retail industry to develop their mobile applications. This has led to an increase in the demand for mobile wallets and payment gateways. Many companies and retail outlets have introduced their goods and services on online platforms. The increasing number of eCommerce websites is also fueling the growth of the digital payment market.
Which are the top Digital Payment companies included in the report?
The major Digital Payments companies include in the report are PayPal (US), Fiserv (US), FIS (US), Global Payments (US), Square (US), Stripe (US), VISA (US), Mastercard (US), Worldline (France), Adyen (Netherlands), ACI Worldwide (US), Temenos (Switzerland), PayU (Netherlands), Apple (US), JPMorgan Chase (US), WEX (US), FLEETCOR (US), Aurus (US), PayTrace (US), Stax by FattMerchant (US), Verifone(US), Spreedly (US), Dwolla (US), BharatPe (India), Payset (UK), PaySend (UK), MatchMove (Singapore), Ripple (US), and EBANX (Brazil).
What are the opportunities for new market entrants in the Digital Payment market?
The gradual adoption of open-banking APIs will create an opportunity for the digital payment market. The open banking mechanism enables third-party service providers to securely access the financial information of customers in real time through Application Programming Interfaces (APIs). With this approach, banks can provide tailor-made financial products, particularly payment solutions, to their existing customers. Open Banking API has evolved the customer base to provide a seamless payment experience. It has increased innovation in the digital payment market and created a new stream of revenue for the industry.
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The study involved four major activities in estimating the current market size of the digital payment market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the segments and sub-segments of the digital payment market.
The market size of companies offering digital payment solutions and services was arrived at based on the secondary data available through paid and unpaid sources. It was also arrived at by analyzing the product portfolio of major companies and rating them based on their performance and quality. In the secondary research process, various sources were referred to for identifying and collecting information for the study. The secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The other secondary sources, such as the National Automated Clearing House Association (NACHA), Electronic Transactions Association (ETA), European Mobile Payment Systems Association (EMPSA), European Card Payment Association (ECPA), and The Smart Payment Association (SPA) were used to collect secondary data. The market trends and initiatives in various countries were extracted from government associations, such as the Electronic Money Association (EMA), APSCA, Singapore FinTech Association, The Payments Council of India (PCI), The Australian Payments Clearing Association (APCA), and Payments Association of South Africa (PASA).
Secondary research was mainly used to obtain key information about industry insights, the market’s monetary chain, the overall pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from both market-and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Technology Officers (CTOs); Vice Presidents (VPs); directors from business development, marketing, and product development/innovation teams; related key executives from digital payment solution and service vendors, system integrators, professional and managed service providers, industry associations, and consultants; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, data on revenue collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various technology, application, deployment, and region trends. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Finance Officers (CFOs), Chief Strategy Officers (CSOs), and the installation team of end users who use digital payment solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of digital payment solutions, which is expected to affect the overall digital payment market growth.
Given below is the breakup of the primary respondents:
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Company Name |
Designation |
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PayPal |
Senior Manager |
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Fiserv |
Senior Analyst |
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Global Payments |
Sales Executive |
Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the size of the digital payment market and various other dependent submarkets in the overall market.
The bottom-up procedure was employed to arrive at the overall size of the digital payment market from the revenues of key players (companies) and their market shares. The calculation was done based on estimations and by verifying key companies’ revenue through extensive primary interviews. Calculations based on the revenues of the key companies identified in the market led to the overall market size. The overall market size was used in the top-down procedure to estimate the size of other individual segments (component, deployment mode, organization size, vertical, and region) via the percentage splits of the market segments from secondary and primary research. The bottom-up procedure was also implemented for the data extracted from the secondary research to validate the market segment revenues obtained. Market shares were then estimated for each company to verify the revenue shares used earlier in the bottom-up procedure. With the data triangulation procedure and validation of data through primary interviews, the exact values of the overall parent market size and its segments’ market size were determined and confirmed using this study.
Digital Payment Market Size: Bottom-Up Approach
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In the top-down approach, the estimation of the digital payment market was prepared from the global Fintech market. The global FinTech market has seven key areas: banking, insurance, loans, personal finance, digital payments, venture capital, and wealth management, and the share of digital payments was estimated through secondary sources, in-house research databases, and primary interviews. The digital payment area was studied and analyzed for its regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CEOs, VPs, directors, and marketing executives. These market numbers were further triangulated with the existing MarketsandMarkets repository for validation.
Digital Payment Market Size: Top-Down Approach
Data Triangulation
With data triangulation and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of the other individual markets via percentage splits of the market segmentation.
Market Definition
Digital payment is an umbrella term encompassing various technologies used in different payment instruments that enable payments through digital modes. The digital payment market covers all the solutions and services incorporating digital payment technologies. Digital payments, also referred to as electronic payments, can be defined as transactions that are initiated without the use of physical cards or paper currencies and are conducted over the internet and mobile channels.
Key Stakeholders
- Payment solution and service providers
- Smart card vendors
- Financial institutions
- Merchants and merchant acquirers
- Mobile network operators
- Credit/Debit card providers
- Contactless payment solution providers
- Cloud payment solution providers
- PoS device manufacturers
- Payment security service providers
- Professional and managed service providers
- System integrators
- Technology consultants
Report Objectives
- To determine and forecast the global digital payment market by offering, transaction type, vertical, and region from 2023 to 2028 and analyze various macroeconomic and microeconomic factors that affect the market growth
- To forecast the size of the market’s segments with respect to five main regions: North America, Europe, Latin America, Asia Pacific (APAC), and Middle East and Africa (MEA)
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall digital payment market
- To provide detailed information regarding major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the digital payment market
- To profile key market players and provide a comparative analysis based on their business overviews, service offerings, regional presence, business strategies, and key financials.
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities, in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific requirements. The following customization options are available for the report:
Product Analysis
- The product matrix provides detailed product information and comparisons
Geographic Analysis
- Further breakup of the European digital payment market
- Further breakup of the APAC market
- Further breakup of the MEA market
- Further breakup of the Latin American digital payment market
Company Information
- Detailed analysis and profiles of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Digital Payment Market
This report will give you a 360 analysis of Digital Payment Market landscape with deep-dive data market sizing, growth projections up to 2026, adoptions rates for platform, services and various application segments across various buyer segments. The report will also cover intel on top vendor developments, Regional analysis for North America, Europe, APAC, Latin America and MEA along with country level data and how this market will shape in the coming years of COVID-19 pandemic as opposed to previous years. Digital Payment Market Report is market focused study on the subject for industry stakeholders recently published and has been well received by many of the industry players aiming to determine the potential revenue opportunities and partnerships in Digital Payment Market space. The study will enable you to gauge the market potential within each of the product areas; and thereby make an informed decision to strategize partnerships, collaboration and marketing efforts to maximize potential revenues.