Market Research Report
Global Digital Payment Market By Component, By Deployment Type, By Enterprise Size, By End User, By Region, Industry Analysis and Forecast, 2020 - 2026
|Published by||KBV Research||Product code||995126|
|Published||Content info||339 Pages
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|Global Digital Payment Market By Component, By Deployment Type, By Enterprise Size, By End User, By Region, Industry Analysis and Forecast, 2020 - 2026|
|Published: February 26, 2021||Content info: 339 Pages||
The Global Digital Payment Market size is expected to reach $175.8 billion by 2026, rising at a market growth of 20% CAGR during the forecast period. The transaction which is carried out through a digital medium with no physical exchange of money is termed as digital Payment. In this process, both the sender and receiver of money use a digital Payment medium to exchange money. Digital Payment is bringing a digital transformation in BFSI sector & this process is further supporting the high growth of digital Payment market.
The increasing initiatives across the world for promoting digital Payment are one of the prime factors to boost the growth of the market. Along with that, some other factors that fuel the market growth include the rising adoption of smartphones, increasing demand for contactless Payment, growing adoption of real-time Payment, and increasing customer expectations. Additionally, the aspects such as the increasing population of people using banking facilities globally, the growing adoption of open banking APIs, and the favorable changes in the rules & regulations will create new growth avenues for the digital Payment market during the forecast period.
The operations of many sectors like manufacturing, hospitality, healthcare, logistics, retail, and transportation have substantially been impacted by the outbreak of COVID-19. Moreover, it has also moderately affected sectors like education, BFSI, IT & telecom, government, and energy & utilities. As a result of this pandemic, the usage & adoption of contactless Payment methods have been increased.
The e-wallets have gained a high popularity for peer to peer (P2P) transfer, customer to business Payment, and paying bills for essential goods and services due to the imposed lockdown & fear of exchanging cash. On the other hand, a few of the wallet providers have raised their fees for vendors and consumers, which led to vendors not using their wallets for money transactions.
Based on Component, the market is segmented into Solutions and Services. Solutions Segment is further bifurcated across Payment Processing, Payment Gateway, Application Program Interface, Transaction Risk Management, Payment Security & Fraud Management and Others. The solution segment would display a significant CAGR over the forecast period. The Payment processing category procured the highest revenue share of the market in 2019. The shifting preference for online shopping globally is encouraging vendors to adopt Payment solutions to provide superior customer experiences.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into On-premise and Cloud. In 2019, the on-premise category held the maximum revenue share. The on-premise implementation of digital Payment solutions helps companies in achieving absolute control over applications & systems that can be easily managed by the enterprise's IT staff. Simultaneously, enterprises utilize on-premise digital Payment solutions to make systems and applications, safe from ill practices.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. The small & medium enterprises segment would showcase promising growth rate during the forecast period. As they are shifting their invoice process from manual to digital because paper-based billing systems are costly, may cause errors, and ineffective. Now, Payment enterprises are aiming to do a partnership with these small & medium size organizations to support their digital Payment solutions.
End User Outlook
Based on End User, the market is segmented into BFSI, Retail & eCommerce, Transportation & Logistics, Healthcare, Telecom & IT, Media & Entertainment and Others. The BFSI category acquired a considerable revenue share in 2019. The rising remittances to low and middle-income nations are anticipated to propel the growth of the market during the forecast years. In addition, banks are also improving their services to participate with the digital Payment solution providers like Amazon, Facebook, and Google.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Region-wise, North America emerged as the leading region in the digital Payment market in 2019. The rising deployment of smart parking meters along with the technological advancement of these meters is contributing to the increasing demand for digital Payment solutions in this region.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Apple, Inc. is the major forerunner in the Digital Payment Market. Companies such as Naspers Limited, PayPal Holdings, Inc., and Mastercard, Inc., Visa, Inc., Fiserv, Inc., Adyen N.V. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Fidelity Information Services (FIS), Inc., Fiserv, Inc., PayPal Holdings, Inc. (eBay), Visa, Inc., Mastercard, Inc., Apple, Inc., Naspers Limited (PayU Group), Adyen N.V., Square, Inc., and Global Payment, Inc.
Recent strategies deployed in Digital Payment Market
Partnerships, Collaborations, and Agreements:
Feb-2021: Global Payment extended its partnership with Google for providing enhanced cloud-based products and capabilities, allowing the best-in-class digital merchant customer experiences across the world. Following the partnership, Global Payment moved its merchant acquiring technology to Google Cloud and helps in offering merchant acquiring services to Google to expand its reach in the global market. Moreover, Global Payment and Google Cloud can launch a series of strategic go-to-market and co-sell activities together.
Jan-2021: Mastercard partnered with NMI and Global Payment. The partnership aimed to introduce a pilot for the latest cloud-based point of sale technology. Together, the companies focused on widening the acceptance of contactless Payment for retailers to serve users who want to pay through their Android mobile devices.
Dec-2020: PayU came into collaboration with Google Pay, a digital wallet platform and online Payment system. The collaboration aimed to introduce tokenized Payment flow for merchants. These Tokenized Payment deliver a more convenient, secure, and friction-free Payment experience.
Dec-020: Adyen extended its collaboration with Microsoft, an American multinational technology company. This expansion focused on boosting Payment innovation for the companies with the introduction of Adyen Network Token Optimization. Adyen also announced that by accepting Network Token Optimization, merchants like Microsoft can register substantially more revenue owing to the rising authorization rates.
Dec-2020: PayPal entered into a partnership with Razorpay, a Payment gateway provider. This partnership focused on enabling seamless international Payment for MSMEs (micro, small and medium enterprises) and freelancers. The companies enabled Indian small businesses and freelancers to globalize themselves by tapping into their 333 million consumer base across 200 markets.
Oct-2020: Mastercard came into partnership with Atlantis and expanded the Digital First Program in India. The Digital First Program focused on reactive users' relationships with more meaningful experiences. Customers could utilize their cards/accounts for digital transactions in a few minutes of application, allowed by a whole digital online application and issuance process.
Oct-2020: Square came into partnership with EE, part of BT Group. Following the partnership, EE provided its business users access to a free Square Reader, with fee-free processing on their first card transactions in person, online, or over the smartphone. The companies aimed to support the UK small businesses to safely accept contactless mobile Payment, anytime and from anywhere.
Sep-2020: Visa extended its partnership with PayPal, an American company operating an online Payment system. This expansion aimed at accelerating real-time access to funds for consumers and small businesses that send or receive money through PayPal, Venmo, or Xoom. It also enabled Visa Direct's payout services by PayPal and its Hyperwallet, Braintree, and iZettle solutions. The companies also introduced the Instant Transfer service in North America and markets in the Asia Pacific and Europe.
Sep-2020: Visa partnered with Google Pay, a digital wallet platform and online Payment system for card-based Payment with tokenization. Following the partnership, Google Pay Android customers can use their debit or credit card to do Payment through a safe digital token linked to their phone without any physical need for credit or debit card details.
Sep-2020: Square, along with Mastercard formed a partnership with the Falkland Islands Government. Together, the organizations focused on solving the challenges, which made it difficult for the island community to take cards. It included assisting the sellers to access the bank accounts required for Payment settlement.
Jun-2020: Mastercard entered into a partnership with Axis Bank Ltd. and Worldline India. Together, the companies focused on launching a digital point-of-sale solution, Soft POS, to assist offline retailers and Kirana stores to take Payment by utilizing their smartphones. This solution enables retailers to take Payment through different digital forms which include Bharat QR, sending Payment links to customers, and even receive NFC-based Payment to accelerate contactless Payment in India.
Jun-2020: Visa collaborated with Facebook to assist the capability of new Payment features on WhatsApp in Brazil. With the addition of Visa's trusted Payment technology, WhatsApp customers can rapidly and safely send and receive money to family and friends and buy from small businesses on the popular global messaging service.
Apr-2020: Fiserv came into partnership with Deluxe, a Trusted Business Technology company. The partnership brought merchant services to Deluxe small business customers. The customers of Deluxe can have access to the market-leading Clover point-of-sale platform, strong physical and online Payment processing capabilities, gift card services, and many others.
Mar-2020: Visa came into partnership with PhonePe, an Indian digital wallet platform, and online Payment company. Following the partnership, PhonePe introduced the first digital Payment platform, Visa Safe Click, a safe and smooth, one-click card Payment feature on its platform. Visa Users have the option on the PhonePe app to operate the latest Payment feature by a one-time validation process to record their card.
Feb-2020: FIS extended its partnership with PayPal, an American company operating an online Payment system. Following the expansion, the companies enabled millions of cardholders of U.S. financial institutions to engage in PayPal's Pay with Rewards.
Feb-2020: Fiserv partnered with SAP, a German multinational software corporation. Under this partnership, the companies helped global B2B companies to streamline their Payment and enhance working capital. Both the companies integrated the two cloud-based solutions, Fiserv's enterprise Payment app SnapPay and the SAP digital Payment add-on to bring digital Payment to their customers.
Jan-2020: PayPal came into partnership with UnionPay International, a subsidiary of China UnionPay. Together, the companies aimed to boost the growth of their networks. Under this partnership, PayPal supported UPI's global acceptance where PayPal is accepted and gives UnionPay cardholders more options while doing shopping. Along with that, UPI also explored opportunities to help in meeting PayPal's merchant and consumer ambitions in China.
Sep-2019: Adyen entered into a partnership with Singapore Airlines. In this partnership, the companies ensured a frictionless Payment experience for users whenever they book online or in-app. They also empowered a seamless Payment experience for travellers despite location, device, or the Payment method.
Dec-2019: PayPal broadened its partnership with Citi, an American multinational investment bank and financial services corporation. This expansion aimed to combine Citi's large global network and customer base of multinational corporations, financial institutions, and public sector organizations and PayPal's broad two-sided network of users and businesses, offering more options and elasticity to Citi and PayPal customers.
Mar-2019: Apple came into partnership with Goldman Sachs and Mastercard for Apple Card. The new Apple card focused on replacing the traditional credit card with a smarter and safer Payment method over all the online and offline stores.
Acquisition and Mergers:
Jan-23021: Fiserv acquired Ondot, a financial technology (fintech) company. Under this acquisition, Fiserv expanded its digital capabilities, improved its portfolio of integrated solutions to allow customers of all sizes to offer frictionless, digital-first, and personalized experiences to their customers.
Oct-2020: Visa signed an agreement to acquire YellowPepper, a pioneer in mobile banking and Payment solutions. In this acquisition, Visa boosted its network of networks strategy, decreasing the time and costs for issuers and processors who need access to innovative operating solutions. YellowPepper helped in combining with Visa Direct, Visa's real-time push Payment platform, its non-card-based B2B network Visa B2B Connect, and value-added services.
Aug-2020: Apple acquired Mobeewave, a groundbreaking certified platform. It enabled Apple to make mobile pay hubs out of iPhones. The system worked through an app and does not need any further hardware beyond a Near Field Communications (NFP) chip. Under this acquisition, Apple strengthened its position in competition with Jack Dorsey's Square that proceeded in Payment tech for smartphones and tablets.
Jun-2020: Square acquired Verse, Developer of a financial platform. Under this acquisition, Verse joined the Cash App organization at Square, which helped the two companies to take lessons from one another as they offered each other additional support due to their Cash App technology and resources. The verse was introduced in more than 15 countries.
Jan-2020: PayU took over a controlling stake in PaySense. PayU merged it with the credit business LazyPay. This merger aimed to boost the vision for credit in India and combined fast-growing business and make it a full-stack digital lending platform lined up with PayU's whole plan of orchestrating a wider fintech ecosystem in the region.
Jul-2019: PayU acquired Red Dot Payment, a Southeast Asia-focused online Payment solutions provider. The acquisition helped PayU to expand its business in the Southeast Asia region.
Jul-2019: Mastercard took over Transfast, a global Payment company. Under this acquisition, Mastercard strengthened its Payment business and boosted more transparency and certainty in cross-border transactions, allowing people and businesses to take and give money across borders smoother and quicker.
Jul-2019: FIS completed the acquisition of Worldpay, a Payment processing company. In this acquisition, FIS strengthened its position to boost its growth and improve the way the world pays, banks, and invests with its world-class portfolio of Payment solutions.
Jul-2019: Fiserv completed its acquisition of First Data Corporation, a financial services company. After the acquisition, Fiserv merged with First Data Corporation and used its expertise and solutions to meet the need of the customers.
Jun-2019: PayU took over iyzico, a digital Payment services provider. Under this acquisition, PayU strengthened its position as a leader and boosted scale, and propelled its SMB business with iyzico's automated solutions. Also, it helped in building an online bridge between Turkey and CEE countries and Africa to motivate more cross-border trade in local currencies in the region.
Apr-2019: PayU completed its acquisition of Wibmo, a provider of Payment solutions and processing services. The acquisition integrated PayU's powerful merchant network and strengthened Wibmo's position in digital transaction security solutions to provide the leading Payment solutions to traders and financial companies in India and other high growth markets.
Product Launches and Product Expansions:
Jul-2020: PayU launched the QR-enabled EFT Payment option. This option helps companies and customers to monitor the status of high-value EFT Payment transactions in real-time. It also guarantees that users and companies don't have to waste time and effort in following customer care centers of banks or merchants to understand the status of their Payment or refund.
May-2019: PayPal launched the popular service OneTouch in India by utilizing Google Smart Lock. This service helped the Indian users to register their Android device with PayPal and enable them to continue its logged into the platform for every succeeding PayPal purchase on that device.
Feb-2019: Adyen introduced a new Payment service, powered by open banking. The new Payment service was unveiled in the U.K., with a plan to be launched in other markets of the European region in the future. Open banking Payment validates between consumers and their banks, which enables vendors to eliminates chargebacks, generated by fraud or the funds couldn't be captured.
Market Segments covered in the Report:
Application Program Interface
Transaction Risk Management
Payment Security & Fraud Management
By Deployment Type
By Enterprise Size
By End User
Rest of North America
Rest of Europe
Rest of Asia Pacific
Rest of LAMEA
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List of Figures