Embracing payment solution through effective utilization of Internet of Things (IoT) and artificial intelligence AI and growing no-cash transition across the world is building scopes for the global digital market demand and revenue generation. The emergence of 3-D Secure 2.0 aiding e-commerce with high fraud security and applicability with connected devices and improved minimal transaction time is upgrading the standard of digital payment procedures worldwide. With newer technology solutions launched constantly in the global digital market, the economic output is set to experience high growth in the future years. The global Digital Payment Market aggregated a revenue of $33.5 billion by the end of 2018 and obtaining demand-pull inflation which is projected to grow at a robust CAGR of 17.6% during the forecast period of 2019-2025.
Novel
App Features Aiding The Global Digital Payment Market Growth:
The innovation avalanche of the digital
payment facilities is emphasizing on acquisition of swarming global demand, eventually
stimulating the growth prospect for the niche market in recent times. Novel
technological transformation accompanied by high security payment methods
introduced via different apps, devices, tools, and software is significantly
inducing lower rate of cybercrimes and pushing forth the run for digital
transformation throughout the world. Automation technology assistance combined
with facial recognition and one fingerprint access to secured payment gateway
is offering countless benefits to the users of all age. The breakthrough
introduction of the face-detecting systems in China to improvise e-payment
authorization is disrupting the digital payment market with pronounced
development led by global leaders such as Alipay and WeChat Pay. Alibaba
adopted this technology by initiating smile to pay digital payment at KFC store
in China which is facilitated without any requirement of smartphones. With
latest leap towards facial recognition technology induced payment methods, Paytm
is progressively working to launch the updated app on Google’s Android platform
which will promote the novel two-factor authenticating (2FA) feature in the
global digital payment market.
Integration of AI technology transition
in the digital payment offers seamless payment experience to the users with the
voice assistant payment technology which is significantly penetrating and
befitting into the modern lifestyle enabled by mainstream smart devices. While
Alexa, Amazon Echo, and Siri provide the next-gen digital payment option are
gaining prominence as AI driven digital payment modification for domestic
purpose, this technology is equally acquiring stronghold position in the
e-commerce and banking sectors. Major prominent revolution led by the newly
launched and developing AI and facial recognition technology enabled digital
assistants is disrupting the global digital payment market growth which is
likely to leverage huge demand in the forthcoming years.
The OneTouch payment solution introduced by PayPal with integration of Google Smart Lock which will provide a frictionless payment with no regular accessibility of credit and debit card details. Additionally, WhatsApp also launched a novel digital pay feature -the WhatsApp Pay- in India which will increase the customer demand for the global digital payment market with a huge user base of 200 million in this country.
Digital transformation has set forth tremendous impact on the retail shopping payment transaction across the world. Convenient and secured payment options with real-time tracking and easy digital payment services such as Google Pay, PayPal, Apple Pay, Samsung Pay, AliPay, and others are pushing forth the retail shopping business even in developing countries like India. Furthermore, ecommerce sector is expanding owing to the increasing popularity of online shopping culture which is facilitated by the e-commerce payment systems boosting the global digital payment market development across the globe. The demand-pull inflation generated by retail and e-commerce segment for digital payment systems is projected to increase vigorously at a healthy CAGR of 21.2% through to 2025.
Regional
Digital Payment Market Development:
North America remarkably contributed economic profit to the global digital payment market, holding a dominating regional share of 34.5% in the year 2018. Accelerated digitization of economy, elevating e-commerce market demand, increasing mobile utilization, and internet usage are rapidly driving the digital payment market in this region. Millennial population is overwhelmingly rising in the Americas which is positively influencing the digital transformation through increasing inclination towards the smart devices and ideal no-cash digital transactions, consequently boosting the digital payment industry throughout the region. Additionally, the current number of smartphone users in America accounts for around 81%, which is projected to elevate the domestic market for mobile payment leveraging high demand and opening broad scope of opportunity thereof.
In the year
2017, nearly 78% of the total household surveys had access to the internet services
in the United States.
- Organisation for Economic Co-operation and Development (OECD)
Growing digital payment platforms in the United States are constantly indulging in numerous sponsorship and partnership strategies for endeavoring sky high demand acquisition owing to smoother experience and less waiting time in queue. For instance, the PayPal approached to promote and establish digital payment services in three stadiums with its announcement to sponsor three sports team: the Phoenix Suns, the Phoenix Mercury, and the Spanish soccer team Real Club Deportivo Mallorca. Moreover, widespread business to consumer (B2C) e-commerce propelled by the advanced healthcare facility, growing hotel and restaurant transactions, rising online shopping trend, and technology convergence in banking and insurance sectors are effectively thriving the digital payment market growth in the North American region.
Prominent
Catalytic Factors Igniting Global Digital Payment Market Growth:
· Upsurge In
Smartphone Usage:
Global demand for smartphones is increasing gigantically with newer technology interference and upgraded digital benefits to the consumers throughout the world. One of the most trending smartphone features which is popularizing across the world is the mobile payment facility which also motivates lesser cash transactions eyeing on the construction of digitally advanced smart nations. Globally, an estimated number of 5 billion people have mobile, with nearly half of this figure are smartphone users, as per the Pew Research Center. This signifies the prospect for digital payment market prospering which is driven by the higher adoption of smartphones across the world.
· Automated
Clearing Houses And Hike In Bank Fusion:
Digital payment is penetrating into the banking and insurance sector rapidly which is facilitated by the launch of automated clearing house (ACH) systems aiding the electronic transfer of payments and funds offering a suitable ease of payment operation for the bank customers. This method reduces the long queue line in the bank facilities and time consuming manual procedure for insurance premiums, mortgage loans, and other types of payment and bills. Furthermore, digital payment pkatforms are constantly partnering and merging with bank utilities which is an important milestone for enhancing the growth prospects of the niche market across the world. There is a huge transactions contribution made through the Paytm payment platform and accounted for the around 19% of the gross mobile-banking transactions. This signifies the high dependency on mobile payment services for multifarious utilities which is to boost the global digital payment market and significantly leverage high revenue and demand scopes in the years coming forth.
· Growing
Proclivity Towards E-Wallets: E-Payment Discounts And Reward Schemes:
As the global population is marching from pocket wallet to e-wallet culture, the digital payment market is leveraging colossal profits and acquiring hue customer base. With increase in computerized and mobile shopping across the world, digital wallets introduced by the various e-payment companies is gaining prominence among the individuals owing to its cardless payment procedure adequately merging with the modern life transaction needs. Online payment gateways facilitated by e-wallets are also popularizing tremendously with the lucrative deals such as discounts and rewards implemented by the digital payment companies and partner companies. This in turn positively impacts the global digital payment market and boosts the economic profit through increased customer demand and usage of digital payment platforms.
· The Millennial
Population:
Digital payment market is also gaining huge demand generated by the increase in Gen Y across the globe. Millennial are highly engaged with digital technologies such as smartphones, smart home appliances, along with it equally influence the online shopping culture driving the need for efficient payment platforms which concurrently boosts the global digital payment market growth.
Revolutionary
Trending Digital Payment Services And Solutions:
· Taxation
Digitalization And Next-Gen E-Commerce:
Transformation in digital technology is
capturing the interest of several industrial, commercial, and, banking,
financial services and insurance (BFSI) sector with drastic changes in the bill
payment procedures. Digital taxation is a massive boost which is remodeling the
BFSI industry and escalating the digital payment market revenue generation
immensely. Recently, Italy and the United Kingdom is implementing digital tax
payment systems which is simultaneously effective in countering payment frauds
and aiding the senior citizens. With higher opportunity scopes for both peer
and consumer, this novel concept will considerably increase the niche market attributed
to the hike in the number of customers depending on digital payment platforms for
tax liability payments.
Growing digital capabilities is building a full-fledged platform for the e-commerce sector and creating a higher scope for the consumers throughout the world to leverage seamless and secured online purchasing facilities. Amazon, Alibaba, eBay, and others are working in collaboration with e-payment platforms to gather higher customer interest which is significantly upheaving the global digital payment market revenue acquisition.
· Surging Internet
Of Payment And AI Integration:
As the digital payment market is enlarging progressively across the world, technology assistance approaches with IoT and AI services is of great advantage for incrementing the overall economic output. With the advent of contactless payment initiated by the use radio-frequency identification (RFID) technology or near-field communication (NFC) technology is now converging latest technology innovations to create frictionless platform for digital transactions. Automatic purchase revolution aided by IoP induced wearable and connected devices through FitPay platform is gaining huge demand as a novel cutting-edge technology significantly boosting the contactless digital payment concept in the global market. Digital payment is investing to become more customer centric platform with chatbot facility, fingerprint and QR code scanning, and facial recognition applications modified by the AI interference. This is likely to increase the digital payment market footprint across the world with combine security and storage services provide by additional incorporation of the blockchain technology and cloud computing with digital payment transactions.
Major
Market Leaders Inducing Immense Payment Progress:
The digital payment is a trending market
which is growing rapidly as new technologies emerge across the world. Major
leaders such as Paypal, PayU, ACI Worldwide, Paysafe, BlueSnap, Adyen, Fiserv,
First Data, and Aurus are constantly adopting and developing novel techniques,
systems, and apps which sets broad impact on the demand growth generated simultaneously
influenced by the increasing customer interest towards the massive digital
transformation in payment procedure.
PayPal is a global leader in the digital payment market with online money transfer services and solutions to various customers across the world. Recently, PayPal invested $500 million in Uber with a business expansion strategy for grabbing increasing customer attention by penetrating into the ride-hailing market. The global payment company, BlueSnap, is contributing largely to the digital payment market with convenient payment services and solutions such as payment gateway, web-based virtual terminal, POS payment, and invoice payment options to support the business enterprises and other individual customers, also prioritizing customer satisfaction.
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