PUBLISHER: Grand View Research | PRODUCT CODE: 1726284
PUBLISHER: Grand View Research | PRODUCT CODE: 1726284
The global digital payment market size is anticipated to reach USD 361.30 billion by 2030, expanding at a CAGR of 21.4% from 2025 to 2030, according to a new report published by Grand View Research, Inc. The market's growth can be attributed to the increasing number of non-cash transactions, alongside technological advancements within the fintech sector. Numerous fintech firms and banks are striving to enhance their digital services in order to align with evolving customer demands. For instance, in January 2021, Mogo Inc., a financial technology and digital payment company, announced the shareholder's approval for the acquisition of a digital payment company, Carta. This acquisition is expected to help the former company strengthen its market presence.
Biometric authentication in digital payments is expected to gain momentum in the coming years. It is a method used for authentication which involves the verification of biological characteristics related to particular person. The authentications include factors such as facial recognition, fingerprint scanning, heartrate analysis, and vein mapping. According to Payments Industry Intelligence, biometric authentication solutions are expected to be used to secure USD 2.5 trillion worth of mobile payment transactions by 2024.
The increase in the adoption of innovative technologies, such as assisted checkouts (ACOs) in the retail industry, is expected to push digital payment industry towards growth. In recent days, various companies have been making efforts to deploy assisted checkout systems in retail stores. For instance, in June 2020, Walmart, a popular retail company has recently announced that they were testing their assisted checkout retail stores at multiple locations in Arkansas and Fayetteville. The traditional cashier checkout lanes in these stores were replaced by self-checkout systems.
The COVID-19 pandemic and its impact on public life has favorably propelled the market towards unprecedented growth. The pandemic has led this industry to an increased number of mobile-based payment solutions and online sales, These factors have been recognized as the major driving forces behind increasing demand for digital payment solutions across the globe. According to the study conducted by Accenture, transactions worth $7 trillion are expected to shift from cash to card and digital payments by 2023.
In presence of events which are acting as a catalyst for growth, i.e. collaborative deals between top players, the market is most likely to witness significant growth. For instance, in December 2023, a collaboration between PayPal Holdings Inc. and SAP was unveiled, marking the introduction of an enhanced integration aimed at streamlining digital payments for SAP customers. This partnership entails the development of a digital payments plug-in designed for the PayPal Braintree platform, leveraging the capabilities of the SAP Business Technology Platform (SAP BTP). These initiatives are expected to drive the market's growth.