DIGITAL PAYMENTS MARKET ANALYSIS

Digital Payments Market Size and Trends

The global digital payments market is estimated to be valued at US$ 75.34 Bn in 2024 and is expected to reach US$ 298.46 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 21.7% from 2024 to 2031.

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The global digital payments market is witnessing positive trends owing to rising smartphone penetration worldwide along with the growing adoption of contactless payments amid the COVID-19 pandemic. Consumers are increasingly preferring digital and contactless payment options over traditional methods of payment such as cash due to convenience and safety from virus transmissions. Moreover, rapid growth of e-commerce is further driving the demand for digital payment solutions. Major technology companies and fintech players are investing heavily in developing advanced payment platforms and solutions using technologies like cryptocurrencies, Blockchain, biometrics, etc. to offer seamless payment experiences and gain more customers in this space. However, data privacy and security concerns could pose challenge to market growth. Still, growing consumer preference for fast, easy, and secure transactions on digital platforms is expected to provide opportunities for the further expansion of the digital payments market in the coming years.

Growing adoption of mobile payments

The rising penetration of smartphones and internet connectivity around the world has opened up new opportunities for digital payments. More and more consumers are using their mobile devices to make online and in-store purchases, transfer funds, and pay bills. The convenience of having a payment option that is always with you has driven significant growth in mobile wallet adoption.

An increasing number of merchants both online and in physical stores are enabling payment via mobile devices. Major retailers, restaurants, grocery stores, and other merchants now allow customers to simply tap or scan their phones to pay. This has made mobile payments a seamless substitute for cash or cards in many shopping scenarios. Furthermore, the vast improvement in mobile internet speeds as well as the rollout of payments networks dedicated to contactless payments has ensured mobile payments work reliably. Users no longer have to worry about connectivity issues or delays in processing transactions.

Banks and fintech players have also strengthened their offerings of digital wallets that can be easily linked to existing bank accounts or cards. Popular apps like Google Pay, Apple Pay, and Samsung Pay as well as digital payments built into messaging platforms are driving significant utility. Their integration with loyalty programs, offers, and cashback further incentivizes repeat usage. The COVID-19 pandemic has provided an additional nudge as more people opted for contactless payments for safety reasons. Social distancing has made the touch and germ-free experience of mobile payments even more appealing.

Overall, the growth in e-commerce as well as changing consumer behavior and preferences for speed, convenience and value added services on their phones are significantly boosting mobile payments’ adoption globally. Major payments networks, banks, merchants as well as handset manufacturers continue investing heavily in simplifying user experience and expanding acceptance coverage, ensuring this segment maintains strong momentum going forward.

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Remittance services for migrants

International migrant workers form a significant part of the global workforce, with millions working outside their home countries. A large proportion of these workers rely on digital means to send portions of their earnings back home to support families and communities. Traditional channels like money transfer operators have dominated the remittance space for long. However, new digital payment methods are increasingly gaining preference due to advantages in cost, speed, accessibility, and transparency.