Global Digital Payment Market is Expected to Foresee A Significant Growth in 2020
According to Univdatos Market Insights — The Global Digital Payment Market is expected to reach the market valuation of US$ 167.6 million by 2026 expanding at a reasonable CAGR of 18.5% during the forecast period (2021–2026) from US$ 65.3 million in 2020. Digital payment solutions such as e-wallets, UPI, POS are deployed for the payment.
Since January 2018, 1 million people are using the internet every day. This number has further grown to 4.39 billion users worldwide in 2019, an increase of 366 million since the previous year. Today, 5 million people own a mobile phone. More and more people have started using smartphones and around 2.71 billion people owned a smartphone in 2019. This has acted as a major driving factor in the escalation of digital payments. People nowadays prefer paying through e-wallets rather than carrying cash with them. Further, the government is also promoting the use of digital payment modes as it is paperless. The government of India for instance has started the “Digital India” initiative for the promotion of digital payments.
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The onset of the COVID-19 pandemic has impacted the overall market. Banking is no exception and it has a new catchphrase: contactless. Contactless payments are gaining momentum since early March as the World Health Organization (WHO) has warned that banknotes may be capable of carrying and spreading the novel coronavirus. Figures reveal that 20 million contactless transactions take place every day, equating to more than 235 per second. Moreover, rewards and cashback make digital payments more lucrative.
The increase of international trade and cross-border e-commerce indicates that demand for cross-border payments will continue to grow. Cross-border payments can be slow, inefficient, and expensive, but they play an important role in global trade. Also, card data security is an area of concern these days. As e-commerce expands, opportunities for fraudulent misuse of payment networks and data theft grow right alongside. However, cloud infrastructure is deployed by enterprises to keep a check on this.
The increasing popularity of digital payment solutions has led to an increase in the adoption of services as well. Both large enterprises and SMEs use this mode for the collection of payments by the customers. There are several end-users of digital payment solutions such as BSFI, healthcare, IT & telecom, media and entertainment, retail and e-commerce, and others. Banking, Financial Services and Insurance (BFSI) attained a market share of 22.4% in 2019.
Additionally, for better investigation and penetration of digital payment, the report gives an in-detailed analysis of digital payment adoption across the world. The market is classified into distinct regions including North America (the U.S and Canada), Europe (Germany, France, Spain, Italy, and United Kingdom), Asia-Pacific (China, Japan, India, and Australia), and the rest of the world. United States generated revenue of US$ 16.9 million in 2019. However, Asia-Pacific is expected to witness the highest CAGR growth with a CAGR of 21% during the forecast period 2020–2026. ACI Worldwide, WEX, Adyen, Dwolla, Fiserv, Novatti, PayPal, Paysafe, Worldpay, and Wirecard are some of the prominent players operating in the global digital payment market. Several M&A’s along with partnerships have been undertaken by these players to facilitate costumers with more efficient and innovative products.