PUBLISHER: The Business Research Company | PRODUCT CODE: 1695926
PUBLISHER: The Business Research Company | PRODUCT CODE: 1695926
Payments refer to the transfer of money or monetary value from one party to another, typically in exchange for goods, services, or to settle tasks. The payments sector encompasses a wide range of methods and channels that facilitate financial transactions between individuals, businesses and institutions. It is an essential component of the global economy, ensuring the smooth flow of funds in both domestic and international contexts.
The payments market consists of revenues earned by entities (organizations, sole traders and partnerships) that are utilized by a diverse set of users, including consumers, businesses and government entities, in everyday commerce, bill settlements and peer-to-peer transactions. Payments are generally initiated through various channels, including physical means such as cash or checks and digital methods like online transfers, mobile payments and card-based transactions.
The global payments market was valued at $443,860.16 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 10.00%.
Growing Banking Infrastructure Development
A growing banking infrastructure development contributed to the growth of the payments market in the historic period. The development of a robust banking infrastructure provides a solid foundation for the integration of emerging technologies such as blockchain, artificial intelligence (AI) and biometrics into payment systems. These innovations enhance transaction security, mitigate fraud risks and streamline payment processes, thereby driving the overall growth and efficiency of the payments industry. For example, according to the Australian Payments Network Limited, an Australia-based regulation company, in June 2021, Australia had over 940,000 point-of-sale (POS) devices, significantly outnumbering the approximately 26,000 automated teller machines (ATM) across the country. This stark contrast highlights the growing consumer preference for contactless and card-based transactions. Therefore, the growing banking infrastructure development drove the growth of the payments market.
Enhancing Merchant Efficiency By Prioritizing Multi-Mode Payment Acceptance
Companies in the payments market are prioritizing improvements in merchant efficiency by enabling multi-mode payment acceptance. This integration of various payment methods into a single device eliminates the need for multiple devices, thereby simplifying payment processing for businesses and enhancing operational efficiency and providing customers with flexible payment options. For instance, in August 2024, HDFC Bank, an India-based financial services company, introduced its All-In-One POS device, designed to enhance merchant services by offering a comprehensive payment processing solution. This compact device seamlessly integrates various payment methods, including card transactions, unified payments interface (UPI) and quick-response (QR) codes and is equipped with a soundbox that provides instant audio notifications for payments. The All-In-One POS is tailored to simplify payment acceptance for businesses, minimize operational friction and support the digital transformation of India's economy. It is specifically designed to meet the needs of micro, small and medium enterprises (MSMEs).
The global payments market is fairly fragmented, with large number of small players in the market. The top ten competitors in the market made up to 25.16% of the total market in 2023.
Payments Global 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 payments market as it emerges from the COVID-19 shut down.
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 history and forecasts market growth by geography. It places the market within the context of the wider payments market; and compares it with other markets.