Global Digital Payment Market: Current Analysis and Forecast (2020-2026)

Global Digital Payment Market: Current Analysis and Forecast (2020-2026)

Emphasis on Type (Solutions, Services), Deployment (On-Premises, Cloud), Payment Mode (POS Payment, Digital Commerce), Payment Enterprises (Large, SME), End-User (BFSI, Healthcare, IT & Telecom, Media & Entertainment, Retail & E-Commerce, Transportation, Others) and Region/Country

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Published: Nov-2020

Pages:251

Table:98

Figure:161

Report ID:UMTI20189

The global digital payment market was valued at US$ 50.9 billion in 2019. Owing to the sudden COVID-19 outbreak demand for contactless payment, the market is expected to witness high growth and is expected to reach a market size of US$ 65.3 billion in 2020. Post 2020 the global digital payment market is expected to witness growth and would grow at a CAGR of 18.55% during the 2021-2026 period to reach US$ 167.6 billion by 2026.

Digital payment is a revolution in the payments industry. With digitization and continued technological development, they can increasingly offer consumers and businesses ways of paying that are tailored, convenient and flexible. Digital payments can also aid facilitate budgeting, financial inclusion, and enable action to prevent and stop economic crime. Developed countries have already adopted digital payment solutions. Developed economies have implemented a cashless payment infrastructure centered primarily on credit cards several decades ago, but in recent years, the legacy structures have suddenly become a burden. The "Western" markets are now much slower to adopt new payment solutions than growing economies like China, India, or Eastern Europe.

Since January 2018, 1 million people a day have started using the internet. This accounts for 4.39 billion internet users worldwide in 2019, an increase of 366 million since 2018. The proliferation of smartphones and digital initiatives is driving the adoption of digital payment infrastructure. Initiatives are been taken by the government, for instance, The Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society and knowledge economy.

The COVID-19 pandemic is impacting the global population in drastic ways. Two in every five-card transactions in the United Kingdom are now made with contactless technology. Figures reveal that 20 million contactless transactions take place every day, equating to more than 235 per second. Online shopping has proliferated on retail websites such as Amazon, mobile payment apps. Cashback schemes are gaining momentum across the world. In the UK, the industry is experiencing exponential growth. This further acts as an added advantage of digital payment. However, operational challenges involving cross-border payments and card data security are acting as challenges in the adoption of digital payment.

Facts About Cash Back Industry

ACI Worldwide, WEX, Adyen, Global Payments, 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 hi-tech and innovative products.

Insights Presented in the Report

“Amongst Type, Solution segment holds the major share”

Based on type, the market is fragmented into solutions and services. Several digital payment solutions are available in the market. With more than 75 billion transactions processed annually. An increase in the adoption of the solution has led to an increase in the adoption of services.

“Amongst Deployment, On-premise is expected to dominate the market during the analyzed period”

Based on the market segment by deployment, the market is segmented into cloud and On-premise. On-premise attained a maximum share of 68% in 2019. However, cloud-based solutions are more secure and advanced. As per a survey, 54% of organizations said that they plan to move more of their payment infrastructure to the cloud soon, owing to the more secure payment that could be carried out using this infrastructure.

“Amongst Payment Mode, Digital Commerce is expected to dominate the market during the analyzed period”

Based on the market segment by payment mode, the market is segmented into POS Payments and Digital Commerce. Point of Sale or POS refers to the place where a transaction takes place. The POS transaction involves a customer and a merchant along with a product or service that is being purchased through the POS system. Digital commerce dominated the market in 2019 with a market share of 60%.

“Amongst Enterprise size, Large Enterprises is expected to dominate the market during the analyzed period”

Based on the market segment by payment enterprises, the market is segmented into large and small enterprises. Large enterprises have adopted the digital payment infrastructure to make the transaction easier for customers. However, the rising popularity of digital payments is encouraging SMEs to accept payment digitally. Moreover, the COVID-19 pandemic has further driven the growth.

“Amongst End-user, BFSI is expected to dominate the market during the analyzed period”

Based on the market segment by end-user, the market is fragmented into BSFI, healthcare, IT & telecom, media and entertainment, retail and e-commerce and others. BFSI has dominated the market with a market share of 22% in 2019. Several initiatives are taken by the government to escalate the adoption of digital payment solutions. The use of FASTag has enabled electronic toll collection mechanism for vehicles. This leads to the rapid commute and ease of collection without any longer queue.

“North America represents one of the largest markets of Digital payment market”

For a better understanding of the market dynamics of the Digital payment market, a detailed analysis was conducted for different regions in the country including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, Italy, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC) and rest of the world has been conducted. United States generated revenue of US$ 21.1 million in 2020. The United States has the largest market for Digital payment due to high awareness.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • Detailed examination of drivers, restraints, key trends and opportunities prevailing in the industry
  • The study comprehensively covers the market across different segments
  • Deep dive regional level analysis of the industry

Customization Options:

Digital Payment Market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

  1 MARKET INTRODUCTION  
    1.1 Market Definition  
    1.2 Objective of the Study
    1.3 Limitation  
    1.4 Stakeholders  
    1.5 Currency used in the Report
    1.6 Scope of the Global Digital Payment Market Study
  2 RESEARCH METHODOLOGY OR ASSUMPTION
    2.1 Research Methodology for the Global Digital Payment Market Study
      2.1.1 Main objective of the Global Digital Payment Market Study
  3 INDUSTRY PERFORMANCE  
  4 EXECUTIVE SUMMARY  
  5 REGULATORY FRAMEWORK OF DIGITAL PAYMENT
    5.1 The Rules and Regulations of Online Payments
      5.1.1 NACHA Operating Rules
      5.1.2 Card Networks
      5.1.3 The Payment Card Industry Data Security Standard (PCI DSS) Compliance
      5.1.4 Know Your Customer (KYC)
    5.2 United States  
      5.2.1 The Financial Services Modernization Act
      5.2.2 Federal Rules Regulating Electronic Financial Transactions
      5.2.3 Self-Regulation and Industry Best Practices
      5.2.4 Internet Gambling
      5.2.5 Cryptocurrency Regulation
    5.3 Canada    
      5.3.1 Interpretation
      5.3.2 Application
      5.3.3 Issuing Electronic Instructions for Payment
      5.3.4 Authentication
      5.3.5 Acceptance
      5.3.6 Replacement Payments
    5.4 Europe    
      5.4.1 Introduction
      5.4.2 PSD2 directive
      5.4.3 PSD2 compliance
      5.4.4 PSD2 regulation: Impacts on banks and TPPs
    5.5 India    
  6 MARKET OVERVIEW    
    6.1 Introduction  
    6.2 Market Dynamics  
      6.2.1 Market Trend & Drivers
        6.2.1.1 Proliferation of Smartphones and Digital Initiatives
        6.2.1.2 Government Support and Initiatives
        6.2.1.3 Rising Popularity of Contactless Payments
        6.2.1.4 Cash back and Rewards
      6.2.2 Market Restraints
        6.2.2.1 Operational Challenges Involving Cross-border Payments
        6.2.2.2 Card Data Security
      6.2.3 Market Trend
        6.2.3.1 Indian Banking to Experience Significant Disruption with Consolidations
        6.2.3.2 Regulators to Turn Digital
        6.2.3.3 Hyper-Connectivity of the World
  7 IMPACT OF PANDEMIC ON DIGITAL PAYMENTS MARKET
    7.1 Introduction  
    7.2 Barriers to Adopting Digital Payments
    7.3 COVID-19 Pandemic May Help Break Barriers to Digital Payments Adoption
      7.3.1 The digital shift in preferences and behaviours of consumers and businesses
      7.3.2 Payments industry initiatives
      7.3.3 Telecommunications industry initiatives
      7.3.4 New and proposed legislation
      7.3.5 Further Steps to Promote Digital Payment Adoption
  8 DEMAND AND SUPPLY SIDE ANALYSIS
    8.1 Demand Side Analysis
    8.2 Supply Side Analysis
      8.2.1 Top Product Launches
      8.2.2 Top Partnerships
      8.2.3 Top Mergers & Acquisitions
      8.2.4 Top Business Expansions, Investment and Divestitures
  9 DIGITAL PAYMENT MARKET VALUE CHAIN
    9.1 Key Value Chain Analysis
  10 MARKET INSIGHTS BY TYPE  
    10.1 General Overview  
      10.1.1 Solutions  
      10.1.2 Services  
  11 MARKET INSIGHTS BY DEPLOYMENT
    11.1 General Overview  
      11.1.1 On-premises
      11.1.2 Cloud  
  12 MARKET INSIGHTS BY PAYMENT MODE
    12.1 General Overview  
      12.1.1 POS Payments
      12.1.2 Digital Commerce
  13 MARKET INSIGHTS BY PAYMENT ENTERPRISES
    13.1 General Overview  
      13.1.1 Large Enterprises
      13.1.2 SMEs  
  14 MARKET INSIGHTS BY END-USER
    14.1 General Overview  
      14.1.1 BFSI  
      14.1.2 Healthcare
      14.1.3 IT & Telecom
      14.1.4 Media and Entertainment
      14.1.5 Retail and E-commerce
      14.1.6 Transportation
      14.1.7 Others  
  15 MARKET INSIGHTS BY REGION  
    15.1 General Overview  
      15.1.1 North America Digital Payment Market
        15.1.1.1 United States Digital Payment Market
        15.1.1.2 Canada Digital Payment Market
        15.1.1.3 Rest of North America Digital Payment Market
      15.1.2 Europe Digital Payment Market
        15.1.2.1 Germany Digital Payment Market
        15.1.2.2 Italy Digital Payment Market
        15.1.2.3 Spain Digital Payment Market
        15.1.2.4 France Digital Payment Market
        15.1.2.5 United Kingdom Digital Payment Market
        15.1.2.6 Rest of Europe Digital Payment Market
      15.1.3 Asia-Pacific Digital Payment Market
        15.1.3.1 India Digital Payment Market
        15.1.3.2 China Digital Payment Market
        15.1.3.3 Japan Digital Payment Market
        15.1.3.4 Australia Digital Payment Market
        15.1.3.5 Rest of APAC Digital Payments Market
      15.1.4 Rest of World Digital Payment Market
  16 COMPETITIVE SCENARIO  
    16.1 Competitive Landscape
      16.1.1 Market Share of Key Players in Digital Payment Market, 2019
  17 TOP COMPANY PROFILES  
    17.1 ACI Worldwide  
      17.1.1 Key Facts  
      17.1.2 Business Description
      17.1.3 ACI Worldwide, Timeline
      17.1.4 Key Product/Services Offerings
      17.1.5 Growth Strategy
      17.1.6 SWOT Analysis
      17.1.7 Key Financials
        17.1.7.1 Revenue Split
      17.1.8 Recent Developments
        17.1.8.1 Product Launch
        17.1.8.2 Partnerships
        17.1.8.3 Business Expansion and Investments
        17.1.8.4 Mergers and Acquisitions
    17.2 WEX    
      17.2.1 Key Facts  
      17.2.2 Business Description
      17.2.3 Key Product/Services Offerings
      17.2.4 Growth Strategy
      17.2.5 SWOT Analysis
      17.2.6 Key Financials
        17.2.6.1 Revenue Split
      17.2.7 Recent Developments
        17.2.7.1 Product Launches
        17.2.7.2 Partnerships
        17.2.7.3 Business Expansion and Investments
        17.2.7.4 Mergers & Acquisitions
    17.3 Novatti    
      17.3.1 Key Facts  
      17.3.2 Business Description
      17.3.3 Key Product/Services Offerings
      17.3.4 Growth Strategy
      17.3.5 SWOT Analysis
      17.3.6 Key Financials
        17.3.6.1 Revenue Split
      17.3.7 Recent Developments
        17.3.7.1 Partnerships
        17.3.7.2 Merger and Acquisitions
    17.4 Global Payments  
      17.4.1 Key Facts  
      17.4.2 Business Description
      17.4.3 Key Product/Services Offerings
      17.4.4 Growth Strategy
      17.4.5 SWOT Analysis
      17.4.6 Key Financials
        17.4.6.1 Revenue Split
      17.4.7 Recent Developments
        17.4.7.1 Partnerships
        17.4.7.2 Business Expansion and Investments
        17.4.7.3 Mergers and Acquisitions
    17.5 Adyen    
      17.5.1 Key Facts  
      17.5.2 Business Description
      17.5.3 Key Product/Services Offerings
      17.5.4 Growth Strategy
      17.5.5 Key Financials
        17.5.5.1 Revenue Split
      17.5.6 Recent Developments
        17.5.6.1 Product Launches
        17.5.6.2 Partnerships
        17.5.6.3 Business Expansions and Investment
    17.6 Fiserv    
      17.6.1 Key Facts  
      17.6.2 Business Description
      17.6.3 Key Product/Services Offerings
      17.6.4 Growth Strategy
      17.6.5 SWOT Analysis
      17.6.6 Key Financials
        17.6.6.1 Revenue Split, by Region and Segment
      17.6.7 Recent Developments
        17.6.7.1 Product Launch
        17.6.7.2 Partnerships
        17.6.7.3 Business Expansions and Investment
        17.6.7.4 Mergers and Acquisitions
    17.7 PayPal    
      17.7.1 Key Facts  
      17.7.2 Business Description
      17.7.3 Key Product/Services Offerings
      17.7.4 Growth Strategy
      17.7.5 SWOT Analysis
      17.7.6 Key Financials
        17.7.6.1 Revenue Split, by Region and Segment
      17.7.7 Recent Developments
        17.7.7.1 Product Launch
        17.7.7.2 Partnerships
        17.7.7.3 Business Expansions and Investment
        17.7.7.4 Mergers and Acquisitions
    17.8 Paysafe    
      17.8.1 Key Facts  
      17.8.2 Business Description
      17.8.3 Key Product/Services Offerings
      17.8.4 Growth Strategy
      17.8.5 SWOT Analysis
      17.8.6 Recent Developments
        17.8.6.1 Product Launch
        17.8.6.2 Partnerships
        17.8.6.3 Business Expansions and Investment
        17.8.6.4 Mergers and Acquisitions
    17.9 Worldpay  
      17.9.1 Key Facts  
      17.9.2 Business Description
      17.9.3 Key Product/Services Offerings
      17.9.4 Growth Strategy
      17.9.5 SWOT Analysis
      17.9.6 Key Financials
        17.9.6.1 Revenue Split, by Region and Segment
      17.9.7 Recent Developments
        17.9.7.1 Product Launch
        17.9.7.2 Partnerships
        17.9.7.3 Business Expansions and Investment
        17.9.7.4 Mergers and Acquisitions
    17.10 Wirecard    
      17.10.1 Key Facts  
      17.10.2 Business Description
      17.10.3 Key Product/Services Offerings
      17.10.4 Growth Strategy
      17.10.5 SWOT Analysis
      17.10.6 Key Financials
        17.10.6.1 Revenue Split, by Region and Segment
      17.10.7 Recent Developments
        17.10.7.1 Product Launch
        17.10.7.2 Partnerships
        17.10.7.3 Business Expansions and Investment
        17.10.7.4 Mergers and Acquisitions

Research Methodology for the Global Digital Payment Analysis (2019-2026)

Analyzing the historical availability, estimation of the current demand and forecasting the future demand of Digital Payments due to the sudden breakdown of COVID-19 in the most affected countries around the world were the three major steps undertaken to create and analyze the availability and demand of digital payment arises due to COVID-19 outbreak. Exhaustive secondary research was conducted to collect the historical numbers and estimate the current demand. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted; with healthcare experts and other industry experts across the value chain of the medical device sector. Post assumption and validation of the numbers through primary interviews, we employed a bottom-up approach to forecast the complete demand size of Digital Payment that arises due to the COVID-19 outbreak. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the availability of several Digital Payment across the COVID-19 most affected region through various sources such as government statements, press releases, journals, news & articles, government publications, competitor publications, research surveys, third-party database and other credible publications.

Step 2: Region Segmentation:

After obtaining the historical market size of the overall market, a detailed secondary analysis was conducted to gather historical market insights and share for different segments for the global digital payment. The major segments included in the report are the type, deployment, payment mode, payment enterprise and end-user.

Step 3: Factor Analysis:

After acquiring the historical number of digital payments, we conducted a detailed factor analysis to estimate the current demand for the digital payment that arises due to the COVID-19 pandemic. Further, we conducted Factor analysis using dependent and independent variables such as the proliferation of smartphones and digital initiatives, government support and initiatives. Through analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, product launches and analyzing the list of start-ups in the Digital Payment industry across the globe.

Current Market Size Estimate & Forecast

Current Demand Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the markets, market shares of these players and the industry’s supply chain. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weightage was assigned to different factors including market drivers, restraints, trends and opportunities available for stakeholders in the industry. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up/Top-down was applied to arrive at the market forecast to 2026 for different segments. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value and rate of adoption of digital payment globally
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in major applications and markets as well as the market share of each player. Also, the growth strategies adopted by these players to compete in the ever-growing global digital payment market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including top medical professionals, research experts from major universities, health institutes, top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

 

Market Engineering

Data triangulation technique was employed to complete the overall demand estimation and to arrive at precise statistical numbers for each studied regions.

Main objective of the Global Digital Payment Demand Analysis-COVID-19 Impact

The current & future Digital Payment demand trends were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future demand trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and demand forecast of Digital Payment due to the COVID-19 outbreak
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors about the industry
  • Major regions studied in the report include 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
  • Define and analyze the competitive landscape of the Digital Payment market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Consumer viewpoint while opting for Digital Payment
  • Deep dive regional level analysis of the industry

Research Methodology for the Global Digital Payment Analysis (2019-2026)

Analyzing the historical availability, estimation of the current demand and forecasting the future demand of Digital Payments due to the sudden breakdown of COVID-19 in the most affected countries around the world were the three major steps undertaken to create and analyze the availability and demand of digital payment arises due to COVID-19 outbreak. Exhaustive secondary research was conducted to collect the historical numbers and estimate the current demand. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted; with healthcare experts and other industry experts across the value chain of the medical device sector. Post assumption and validation of the numbers through primary interviews, we employed a bottom-up approach to forecast the complete demand size of Digital Payment that arises due to the COVID-19 outbreak. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the availability of several Digital Payment across the COVID-19 most affected region through various sources such as government statements, press releases, journals, news & articles, government publications, competitor publications, research surveys, third-party database and other credible publications.

Step 2: Region Segmentation:

After obtaining the historical market size of the overall market, a detailed secondary analysis was conducted to gather historical market insights and share for different segments for the global digital payment. The major segments included in the report are the type, deployment, payment mode, payment enterprise and end-user.

Step 3: Factor Analysis:

After acquiring the historical number of digital payments, we conducted a detailed factor analysis to estimate the current demand for the digital payment that arises due to the COVID-19 pandemic. Further, we conducted Factor analysis using dependent and independent variables such as the proliferation of smartphones and digital initiatives, government support and initiatives. Through analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, product launches and analyzing the list of start-ups in the Digital Payment industry across the globe.

Current Market Size Estimate & Forecast

Current Demand Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the markets, market shares of these players and the industry’s supply chain. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weightage was assigned to different factors including market drivers, restraints, trends and opportunities available for stakeholders in the industry. After analyzing these factors, relevant forecasting techniques i.e. Bottom-up/Top-down was applied to arrive at the market forecast to 2026 for different segments. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value and rate of adoption of digital payment globally
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in major applications and markets as well as the market share of each player. Also, the growth strategies adopted by these players to compete in the ever-growing global digital payment market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including top medical professionals, research experts from major universities, health institutes, top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

 

Market Engineering

Data triangulation technique was employed to complete the overall demand estimation and to arrive at precise statistical numbers for each studied regions.

Main objective of the Global Digital Payment Demand Analysis-COVID-19 Impact

The current & future Digital Payment demand trends were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future demand trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and demand forecast of Digital Payment due to the COVID-19 outbreak
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors about the industry
  • Major regions studied in the report include 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
  • Define and analyze the competitive landscape of the Digital Payment market and the growth strategies adopted by the market players to sustain in the fast-growing market
  • Consumer viewpoint while opting for Digital Payment
  • Deep dive regional level analysis of the industry

Global Digital Payment Market: Current Analysis and Forecast (2020-2026)