PUBLISHER: The Business Research Company | PRODUCT CODE: 1733576
PUBLISHER: The Business Research Company | PRODUCT CODE: 1733576
Lending and payments is a fundamental aspect of the financial system that enables the flow of money between individuals, businesses, and institutions. Lending involves one party providing funds to another with the expectation of repayment, typically with interest, over a specified period. Payments refer to the transfer of money in exchange for goods, services, or to settle debts, and can be made through various methods like cash, credit cards, or digital transfers.
The lending and payments market consists of revenues generated by entities (organizations, sole traders, and partnerships) engaged in financial services that provide credit and facilitate transactions. Lending involves offering loans or credit to individuals and businesses, which are typically repaid with interest over time through various channels such as banks, credit unions, and online platforms. Payments encompass the processing and transfer of money between parties for goods, services, or settling debts, utilizing methods like cash, credit cards, digital wallets, and electronic transfers.
The global lending and payments market was valued at $8,736.97 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 7.00%.
Increased Cross-Border Transactions
The growth of the lending and payments market during the historic period was driven by the increased cross-border transactions. These transactions involve financial exchanges between entities in different countries, including trade payments, investments, loans, remittances, and bank transfers. The increase in cross-border transactions has been fueled by rising foreign investments, leading to greater capital flows, and advancements in digital banking and fintech, which have enhanced the speed and efficiency of international payments. This trend has boosted lending demand, particularly for international credit and trade financing, as businesses and investors seek funding for global operations. For example, in January 2024, the Bank for International Settlements, a Switzerland-based foreign exchange company, reported that banks' cross-border claims grew by $801 billion in Quarter three (Q3) 2023, reaching $38 trillion, a 1% year-on-year (YoY) increase. Additionally, cross-border bank credit rose by $448 billion during the quarter, marking a 2% YoY growth. Therefore, the increased cross-border transactions significantly contributed to the expansion of the lending and payments market.
Strategic Partnerships In Lending And Payments Enhance Business Growth And Flexibility
Leading companies in the lending and payments industry are increasingly focusing on forming strategic partnerships to enhance their service offerings, broaden their market presence, and improve customer experience. These strategic collaborations involve organizations working together to achieve mutual objectives, leveraging each other's strengths while maintaining independence. For instance, in June 2024, PingPong, a China-based cross-border payments platform, teamed up with Kanmon, a US-based financial technology company, to launch an embedded lending solution that offers US businesses quick and easy access to financing. This solution provides fixed-term loans and accounts payable financing of up to $250,000, with fast approvals and funding within 48 hours, all seamlessly integrated into the PingPong platform. By assisting businesses with cash flow management and extending payment terms, PingPong aims to support growth, particularly during peak sales periods, and offer the flexibility needed to navigate challenges in global supply chains and interest rates.
The global lending and payments market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 9.46% of the total market in 2023.
Lending And Payments Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global lending and payments tools market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for lending and payments? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The lending and payments market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider lending and payments market; and compares it with other markets.
Growth Analysis And Strategic Analysis Framework Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).