Payments Global Market Report 2024

Payment instruments are mechanisms facilitating the transfer of funds from accounts held at credit, payment, or comparable institutions to a payee upon receipt of a payment order.

The primary payment types encompass credit transfer, direct debit, check payment, and cash deposit. Credit transfer involves the transfer of credit from one account to another. Various applications for credit transfer are utilized by banks, non-banking financial institutions, and other entities. These applications cater to a diverse range of end users, including retail, banking and financial services, telecommunications, government, transportation, and others.

The payments research report is one of a series of new reports from The Business Research Company that provides payments statistics, including payments industry global market size, regional shares, competitors with payments share, detailed payments segments, market trends and opportunities, and any further data you may need to thrive in the payments industry. This payments research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The payments market size has grown rapidly in recent years. It will grow from $678.42 billion in 2023 to $748.02 billion in 2024 at a compound annual growth rate (CAGR) of 10.3%. The expansion observed in the historical period can be ascribed to the rise of e-commerce, increased globalization leading to cross-border transactions, the digitalization of financial services, the emphasis on consumer convenience and speed, and shifts in regulatory requirements and compliance.

The payments market size is expected to see strong growth in the next few years. It will grow to $1086.76 billion in 2028 at a compound annual growth rate (CAGR) of 9.8%. The anticipated growth in the forecast period is linked to the adoption of contactless and mobile payments, the emergence of digital currencies and central bank digital currencies (CBDCs), initiatives for financial inclusion, the implementation of open banking and APIs, and the focus on cybersecurity and fraud prevention. Prominent trends expected in the forecast period encompass services such as buy now, pay later, cross-border and international payments, the integration of open banking and APIs, payment models based on subscriptions, and regulatory initiatives with a focus on compliance.

The outbreak of COVID-19 is expected to stimulate the growth of the payments market in the forecast period. Digital payment, involving electronic transactions without cash or physical checks, is facilitated through various methods such as credit and debit cards, mobile wallets, online banking, and peer-to-peer payment apps. Data from November 2021 by Global Findex, a US-based financial inclusion database, reveals a 65% increase in activity for digital payments and a 24% rise in digital banking. Hence, the widespread impact of the COVID-19 is projected to drive the digital growth of the payments market.

The expansion of the E-commerce sector is anticipated to propel the growth of the payments market in the forecast period. E-commerce, the online buying and selling of goods and services, has reshaped the payments market by enhancing accessibility, introducing alternative payment methods, reducing transaction costs, providing convenience, and boosting revenue for businesses. As per February 2023 data from Forbes, a US-based business magazine, E-commerce sales are forecasted to grow by 10.4% in 2023, with 20.8% of retail purchases expected to occur online in the same year. Consequently, the extensive reach of the COVID-19 is predicted to drive the contactless growth of the payments market in the forecast period.

The rising incidents of fraud in payments have had a negative impact on the growth of the payments market. Payment fraud, involving fraudulent or unlawful transactions by cybercriminals, often occurs through third-party platforms such as e-commerce portals. According to Merchant Savvy, global losses from payment fraud tripled to $32.39 billion in 2020 and are expected to reach $40.62 billion in 2027, marking a 25% increase from 2020. Therefore, the surge in fraud cases hampers the growth of the payments market.

The adoption of biometric authentication technology in payments is a prominent trend gaining traction in the payments market. Biometric authentication combines accuracy, efficiency, and security in a single payment method. Various authentication methods include fingerprint scanners, facial recognition, iris recognition, pulse tracking, and venous mapping. For example, in January 2022, Apple Inc., a US-based company in the payments sector, introduced iOS 15.4 beta with periocular biometrics, enabling Face ID usage with a mask and without an Apple Watch for biometric authentication.

The incorporation of QR and contactless card acceptance technology into payments is another significant trend on the rise in the payments market. Devices supporting QR and card acceptance enable merchants to accept payments using QR codes and contactless cards. These portable devices find applications in various settings such as retail stores, restaurants, and food stalls. For instance, in September 2023, Pine Labs, an India-based merchant platform, launched the Mini QR-first device with card acceptance. This device prioritizes QR code payments linked to UPI, a popular method in India, providing merchants with a versatile solution to cater to a broader customer base. Pine Labs Mini also facilitates contactless payments via credit and debit cards, enhancing its adaptability.

In April 2023, PureSoftware, an India-based software products and digital services company, formed a partnership with Liveplex, a US-based company specializing in assisting businesses in transitioning to Web 3.0 through API integration. This collaboration enables PureSoftware to offer its customers benefits such as transparency, traceability, data security, digital asset safeguarding, and interoperability. By incorporating Web 3.0 capability into its Arttha wallet, this partnership simplifies the process for customers to establish a Web 3.0 presence, ensuring robust security, data integrity, and cost-effectiveness.

Major companies operating in the payments market report are Amazon Payments Inc., Apple Inc., Google Pay Inc., Samsung Electronics Co. Ltd., Industrial and Commercial Bank of China Limited, Alipay Co. Ltd., JPMorgan Chase & Co., Bank of America, National Merchants Association, Citibank, Wells Fargo and Company, American Express Company, Capital One Financial Corporation, Visa Inc., PayPal Holdings Inc., Flagship Merchant Services, Mastercard Inc., Fiserv Inc., Square Inc., Fidelity National Information Services Inc., Stripe Inc., Global Payments Inc., Payline Data Services LLC, Worldline SA, Adyen N.V., ACI Worldwide Inc., X-Payments, First Data Corporation, Bitpay Inc., Braintree Technology solutions LLC, GoCardless Ltd.

Asia-Pacific was the largest region in the payments market in 2023. Western Europe was the second largest region in the global payments market share. The regions covered in the payments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the payments market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The payments market consists of revenues earned by entities that are engaged in facilitating payment transfers between individuals, companies, or both. The payments industry consists of establishments primarily engaged in processing money transfers and payments between various accounts. This includes all institutions involved in payment processing such as banks, non-banking financial institutions, and others. Revenue generated from the payments market includes all the processing and services fees levied by the banks and financial institutions for payment processing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Payments Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on payments market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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• Measure the impact of high global inflation on market growth.
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Where is the largest and fastest growing market for payments ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The 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 historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Credit Transfer, Direct Debit, Check Payment, Cash Deposit
• 2) By Application: Banks, Non-Banking Financial Institutions, Other Applications
• 3) By End-user Industry: Retail, Banking and Financial Service, Telecommunication, Government, Transportation, Other End Users
• Companies Mentioned: Amazon Payments Inc.; Apple Inc.; Google Pay Inc.; Samsung Electronics Co. Ltd.; Industrial and Commercial Bank of China Limited
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.