Digital Payments Market to Skyrocket due to COVID-19 Pandemic

The Global Digital Payments Market size was valued at USD 87.8 Billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.10% from 2022 to 10;There are various types and modes of Digital Payments. Some of these include the use of debit/credit cards, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, etc.

The worldwide increase in customer preference for real-time payments is one of the major factors driving the market growth. India registered 25.6 billion real-time transactions in 2020, witnessing a 70% increase from 2019. The increasing adoption of mobile wallets can be attributed to this significant rise in the use of Digital Payments in the 160; E-commerce service providers are making efforts to strengthen their competitive positions by moving from traditional credit card and consumer finance solutions toward customer engagement solutions that leverage Digital Payments. Government bodies across the world are increasing the limit of contactless payment cards, creating new growth opportunities for the Digital Payments Market.

Even though the risk of fraud has risen, the seamless flexibility offered is outweighing the larger picture. The Treasury and Financial Conduct Authority (FCA) increased the contactless payment limit from USD 50.92 to USD 113.16 in the U.K. This limit was previously increased by FCA from USD 33.95 to USD 50.92 in April 2020 as a COVID-19 measure to reduce contact between payment terminals and shoppers. Strong network connectivity enables people to seamlessly make payments and buy products online using mobile devices. Hence, the growing adoption of the 5G network worldwide is also expected to drive Digital Payments Market growth. Lingering customer anxiety over being in crowded places amid the pandemic is also driving demand for online retailing thus for Digital Payments.

The Global Digital Payments Market can be segmented on the basis of solutions provided into the application program interface, payment gateway, payment processing, payment security & fraud management. transaction risk management, among others. Based on mode of payment, the market consists of bank cards, digital currencies, digital wallets, net banking, point of sales, and others. The point of sales segment dominated the market in 2021. The increasing preference for online shopping across the globe is prompting retailers to adopt payment processing solutions to provide customers with seamless checkout 160;

The Digital Payments Market includes either cloud or on-premise type of deployment. The on-premise segment dominated the market in 2021 and accounted for a substantial share. The increased frequency of financial frauds amid the COVID-19 pandemic is one of the major factors driving the demand for on-premise solutions among organizations. These deployment types are employed for large enterprises or small and medium enterprises. The end-user segment of the Digital Payments Market is divided into BFSI, healthcare, IT and telecom, media and entertainment, retail and E-commerce, transportation, and others. The need for international as well as domestic transactions is rapidly increasing. This encourages the growth of the BFSI component which dominated the market segment in 2021.

On the basis of regional analysis, the Global Digital Payments Market is categorized in North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.North America dominated the global market and accounted for the largest revenue share of over 33.80%. The regional market benefits from factors, such as the increasing deployment of and technology enhancements in smart parking 10;Banks in Europe are making efforts to launch a European payment initiative aimed at creating a unified payments solution for merchants and consumers across the region. Such initiatives are expected to create new growth opportunities for the market over the forecast period.

Some of the key players in the Global Digital Payments Market 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), 2Checkout now Verifone(US), Spreedly (US), Dwolla (US), Braintree (US), Clover(US), OpenWay Group (Belgium), EBANX (Brazil).. These companies are contributing majorly in this market by adopting strategies such as collaborations and partnerships to provide Digital Payments solutions across the regions.