Global payment market revenues totaled USD 1.98 Trillion in 2021, CAGR is about 6.25% in the period of 2022-2030.
The global digital payments market is expected to grow significantly during the forecast period. Key drivers of the payments market include the rising penetration of contactless payments, rapid changes in the global payments landscape due to covid 19, the proliferation of smartphones, and growing digitalization. The payments market is made up of businesses that specialize in processing money transfers and payments between different accounts. All payment processing institutions such as banks, NBFCs, and other financial companies are included. Also, all processing fees accessed by banks and financial institutions for payment processing are included in the revenue generated by the total payments market.
Other factors contributing to the growth of the payments market are high eCommerce sales, increasing internet penetration, rising mobile commerce growth, and increasing government initiatives for the promotion of online payments. Moreover increasing cross-border trade along with rising globalization is also contributing towards the market growth. Further increasing competition among credit card issuers, mobile operators, smartphone makers such as Apple and Samsung, and the growing popularity of NFC-based mobile payments is driving the growth of the market. Also increasing cross-border and cross-currency instant B2B payments will enhance the market growth in the coming years.
Rising trend of cashless payments will fuel the growth of the market
There has been a tremendous shift towards cashless payments in the entire financial services market. However, the transformation has been radical with rapid evolution in both front and back end parts of the payment system like instant payments, plastic cards, request to pay, digital wallets, etc. On the other hand, there has been a complete structural change in the payment mix and ecosystem with the emerging trend of buy now pay later and the steady rise of digital currencies such as cryptocurrencies. Thus growing shift towards digitalization, increasing smartphone usage and contactless payments trend will significantly fuel the growth of the payments market.
Growing innovation and faster accessibility will propel the growth of the market
The financial industry’s success is attracting new players into the global payments ecosystem. In the coming years, we are going to witness rapid customization and acceptance of digital payments. With increasing government initiatives for the promotion of online payments and growing cross-border trade practices, the market is expected to witness a huge boom in the future. Regulators and central banks are engaging more actively and new services and software are being embedded rapidly into the digital ecosystems further giving a huge thrust to the growth of the payments market during the forecast period. Further growing internet penetration and rising mobile commerce transactions will provide a huge boost to the market growth.
Rapid decrease in the unbanked population globally provide lucrative opportunities for the growth of the market
A large number of the population in developing countries live in remote and rural areas. This provides huge scope for opportunities related to financial inclusion. Hence, governments, banks, NBFCs, and private sector players such as fintech firms are aggressively expanding their market penetration in order to provide financial services to a large part of the population residing in remote or rural areas. Due to growing initiatives and schemes, there has been a steady decrease in the number of people untouched by the financial payments revolution. Thus growing population provides lucrative opportunities for the growth of the payments market during the forecast period and will continue to rise higher in the coming years.
Covid 19 impact has given a tremendous boost to the growth of the market
Due to covid 19 induced lockdowns, there has been a steady decline in in-person purchases, cash transactions, and ATM usage. With the fear of contracting covid 19 through high traffic ATM lines and the refusal of merchants to accept cash despite it being legal tender, there has been a significant shift towards electronic payment options to complete purchases. This has led to an incremental revenue earning for banks because the cost of cash handling exceeds the total cash revenue inflows while electronic payments generate incremental revenue. Further with physical banking shifting to virtual banking, the growth of the payments market has received a huge boost during covid 19 and the growth is expected to rise further during the forecast period. Moreover growing investments in online payments infrastructure for eCommerce and POS transactions will further accelerate the growth of the payments market in the future.
Based on region, Asia-pacific is expected to provide lucrative opportunities for growth in the payments market share during the forecast period due to growing government initiatives by countries in this region to strengthen their payment landscape.
1. PayPal:
PayPal Holdings, Inc. is an American firm that operates an online payments system in the majority of nations that allow for online money transfers, and serves as an electronic alternative to traditional paper methods like cheques and money orders.
2. FIS:
Read FIS is a Fortune 500 corporation based in the United States that provides a wide range of financial goods and services. FIS employs roughly 55,000 people worldwide and is headquartered in Jacksonville, Florida. All of these workers work from home on a permanent basis, and FIS has been using the Work from Anywhere model since March 2020.
3. Bank of America:
The Bank of America Corporation, headquartered in Charlotte, North Carolina, is an American global investment bank and financial services holding company. Bank of America was founded in San Francisco in 1998 as a result of NationsBank's acquisition of BankAmerica.
4. Citi:
Citibank is the consumer division of Citigroup, a financial services conglomerate. Citibank began as the City Bank of New York in 1812 and later changed its name to First National City Bank of New York.
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Report Metric |
Details |
|
Report Name |
Payments Market |
|
Base Year |
2022 |
|
Historical Forecast Period |
2023 - 2030 |
|
Growth Rate |
CAGR 6.25% |
|
Segment by Type |
Credit Transfer, Direct Debit, Check Payment, Cash Deposit |
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Segment by Application |
Non-Banking Financial Institutions |
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Key Companies |
Paypal, FIS, Bank Of America, Citi, Industry And Commercial Bank Of China. |
Ans: The following companies are the top companies in payments market. Paypal, FIS, Bank Of America, Citi, Industry And Commercial Bank Of China.
Ans: Some of the segments covered in this report are Credit Transfer, Direct Debit, Check Payment, Cash Deposit.
Ans: Global payment revenues totaled $1.98 trillion in 2021,CAGR is about 6.25% in the period of 2022-2030
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