Digital Payment Market
Report ID: SQMIG45C2125
Report ID: SQMIG45C2125
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Report ID:
SQMIG45C2125 |
Region:
Global |
Published Date: December, 2025
Pages:
188
|Tables:
176
|Figures:
76
Global Digital Payment Market size was valued at USD 124.31 Billion in 2024 and is poised to grow from USD 140.22 Billion in 2025 to USD 367.53 Billion by 2033, growing at a CAGR of 12.8% during the forecast period (2026–2033).
The Digital Payment Market is growing rapidly around the world due to technology changes and the increasing use of smartphones and internet services. The digital payment market is driven by the desire by government to create cashless economies, and the rise in demand for real time payment systems and the growth of e-commerce and m-commerce sectors. For example, in India, the Digital India campaign created a tremendous increase in digital payments and, in Brazil, the centralized PIX instant payment system has also transformed the way payments are made digitally. Moreover, innovations such as QR code payments, digital wallets and blockchain-based payments are improving user convenience and lowering transaction costs, leading mass adoption by consumers and merchants alike.
Those same drivers apply to enterprise, but there is also a need for greater efficiency, transparency, and less exposure to fraud. Increasingly, businesses are adopting digital payments systems to reduce billing, improve customer experience, and to capitalize on transaction data analytics. The emergence of new revenue models, such as Buy Now Pay Later (BNPL), is enticing an entirely new group of consumers to adopt digital transactions. Digital payment service providers are collaborating with fintech service providers and financial institutions to deliver an open-banking platform at speed and scale in developed and developing nations.
However, from a restraint perspective, the market has several population of challenges. Cybersecurity threats such as phishing, identity theft, and data breaches are determents in the market and may stall consumers from using digital platforms. Areas that lack adequate digital infrastructure, such as urban areas and rural locations within emerging markets, will limit depth of penetration into the market. Regulatory challenges with cross-border compliance, or varying data protection laws, such as GDPR in Europe, may deter expansion. Digital illiteracy among some segments of the population and trust implications for newer payment technology also limits the potential for widespread adoption. Stakeholders must prioritize cybersecurity investments, user education, and physical infrastructure improvements to sustain growth.
How AI is Transforming Digital Payment Market?
Artifical intelligence is transforming digital payments in significant ways including real-time fraud detection, intelligent routing and hyper-personalization of user experiences. Machine learning models can now leverage thousands of data points for each transaction to recognize anomalies in milliseconds, minimizing false declines and improving achieved approval rates. Artificial intelligence also can automate KYC and AML checks, which can reduce the time to onboard a customer by as much as 30%, while determining the most effective payment rails, thus speeding up settlement processes and reducing costs by as much as 20%. Personalization engines leverage customer data to identify which payment method, BNPL opportunities and loyalty incentives will yield the best conversion, resulting in a frictionless checkout experience.
A relevant use case for AI was shared by Riskified’s Adaptive Checkout (launched late 2024) was adopted by TickPick (a U.S. ticket marketplace). Adaptive Checkout uses machine learning to assess and assign risk in real-time approval of genuine high-value purchases, flag questionable purchases or require user verification. In less than 3 months, TickPick was able to recoup $3 million dollars in revenue lost to false declines. This is an example of how artificial intelligence can improve both security and customer satisfaction.
Market snapshot - 2026-2033
Global Market Size
USD 110.2 billion
Largest Segment
Solutions
Fastest Growth
Solutions
Growth Rate
12.8% CAGR
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Global Digital Payment Market is segmented by Offering, Transaction Type, Payment Mode, Deployment, Enterprise Size, Vertical and region. Based on Offering, the market is segmented into Solutions and Services. Based on Transaction Type, the market is segmented into Domestic and Cross Border. Based on Payment Mode, the market is segmented into Cards, ACH Transfer, Digital Wallet, Net Banking and Other Payment Modes. Based on Deployment, the market is segmented into Cloud, On-premise and Hybrid. Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. Based on Vertical, the market is segmented into BFSI, Retail & E-commerce, IT & ITeS, Telecom, Healthcare, Travel & Hospitality, Transportation & Logistics, Media & Entertainment and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The BFSI segment witnessed the highest revenue digital payment market share in 2023. The growing demand for digital money transfers for domestic and cross-border transactions encourages banks to adopt digital payment solutions. Banks are also increasing their product offerings. For example, in October 2023, the U.S. Bank announced the launch of Avance, a point-of-sale multi-channel lending solution.
The retail & e-commerce segment is expected to expand at the highest CAGR from 2024 to 2031. The increasing number of unmanned retail stores across the globe is also driving the market growth. According to an article published by NXP Semiconductors, the number of unmanned shops worldwide is estimated to reach 44,138 in 2023. The increasing number of unmanned shops is driving demand for digital payment solutions.
Solutions continue to be dominant in the digital payments industry, fueled by increasing digitization supported by government initiatives. For example, in March 2022, India's Reserve Bank of India (RBI) launched its 123PAY platform, which allows offline payment for those that do not have internet access. In the EU, the Digital Finance Package, which promotes open banking solutions is making headway. Each of these initiatives result in an uptick of demand for gateways, wallets, and POS systems, which ultimately reinforce solutions as a core enabler of digital transactions around the globe.
Services related solutions, managed and professional services constitute the fastest-growing segment in the digital payments market, because of increasing consumer demand for managed fraud prevention, onboarding and implementation, integrated systems, and 24/7 customer support. According to industry analysts, managed services have the highest projected growth of the four service types (2022 - 2027 CAGR). In India and Sri Lanka, governments are utilising their digital solutions and programmes such as India Stack and Sri Lanka's GovPay to encourage private organisations to outsource their payments into managed services, or managed platforms, which provide secure, scalable solutions and accessibility.
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North America is the leader in the digital payments market with approximately 33-38% market share in 2024, mostly attributed to the supporting mature financial infrastructures in the United States and the government supported real-time payment rails, like FedNow, which alone processed nearly USD 48.6 B in Q1 2025. The supportive regulatory framework with the government, such as new BNPL rules and open banking regulations, as well as improved competition, support these trends in the following ways.
The U.S. leads North America, with the largest dominant players being PayPal, Stripe, Visa, Apple Pay, Zelle, and Square. The FedNow Instant payment system was launched in July 2023 and has tested its real-time payments over to over 1000 institutions, with plans to scale all technology players operating. The United States is also improving regulations with the CFPB's new rule (2025) to regulate apps (Apple Pay & PayPal) like banks with the intention of providing the greatest amount of consumer trust and security.
The country of Canada is quickly modernizing by adopting Payments Canada's Real-Time Rail (RTR) due to launch by 2026. The RTR will greatly level the field with features such as real-time clearance in ISO 20022 format. Simultaneously, the Bank of Canada is working with private companies and started to register payment service providers (PSPs) in November 2024, expected to onboard as many as 3,500 by mid-2025. This has opened our industry for competition paid stakeholders and interest between different participants and to support inclusion in the payment ecosystem.
The AsiaPacific region is seeing the quickest growth, with some estimated CAGR of ~17-23%. Government investment and significant digital transformation across populous markets is driving growth. The Unified Payment Interface (UPI) in India reached over 17 billion monthly transactions in February 2024, and digital yuan pilots in China have gained traction in the marketplace. Indonesia's QRIS payment system experienced about a 226% increase in transaction volume in Q1 2024 and cross-border QR initiatives through partnerships via ASEAN schemes will help expand regional interoperability.
WeChat Pay and Alipay each dominate by controlling over 90% of transactions in China's market, and together form a duopoly to the governments approved payment systems on their licensed platforms. Further, the Central Bank of China's (PBOC) pilot programs for digital yuan supports the digital infrastructure.
India is ahead of the APAC region by transaction volume, with UPI accounting for ~83% of digital payments in 2024. National Payment Corporation of India (NPCI)'s UPI routed over 650 million daily transactions in 2024, limiting cash usage in the market, engaging fiscal enforcement by data like (GST) registration using UPI data.
South Korea ranks highest in the APAC region in card and mobile wallet payments, of which card volumes approach KRW 1,272 trillion ~USD 974 billion in 2024, of which ~80% are credit cards. South Korea has nearly 65,000 POS terminals for every million people with tax incentives based on credit usage.
Digital payments are growing strongly in Europe, evidenced by a consistent increase in non-cash values in terms of both volumes and values. Public-sector movements, like the digital euro and instant payment mandates and production activity to create industry-driven pan-European solutions like Wero and EuroPA, will contribute to growth and integration to have Europe in a mature state and also transforming.
Real-time rails (TARGET2) and open-banking directives (PSD2) in Germany are pushing growth. Open-banking revenues will reach USD 9 billion by 2030. Local banks are pushing Wero via EPI and solidifying Germany’s lead for secure account-to-account mobile payments.
France is building momentum with Wero and digital wallets, especially from EPI and major banks like BNP Paribas. French consumers favor cards/wallets over cash due to security, convenience and government movements are targeting reducing reliance of domestic markets on U.S. schemes.
The UK’s fintech valuations lead all of Europe with companies like Checkout.com headquartered in London. Over 50% of adults in the UK utilized a digital wallet in 2024. The UK regulatory "regulation" of open banking and Payment Services (and revisions of it) is cultivating a trust framework and supporting retailer "innovation" of "Pay" in "digital payments."
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The payments sector is dominated by leading manufacturers such as Visa, Mastercard, PayPal and Stripe. In 2024, Visa processed almost $12 trillion in payments and had around a 50% market share. PayPal processes payment volume of $1.4 trillion for its over 400 million users in 2023. Strip, has a processing pool of around 17% of that globally (~$800 billion). Governments and central banks are innovating, using CBDC pilots (e.g., China’s e CNY, ECB’s digital euro) and interconnected instant payment systems (e.g., BIS led Project Nexus) - to shape competition by extending public infrastructure. Governments are moving to enable multiple new rails
Is real-time payments growth scaling globally?
Real-time payments grew 42.2% year-on-year in 2023 to total 266.2 billion transactions. Major regions including North America, Europe, and Asia, are intensifying the adoption of real time payments through government-backed schemes, such as FedNow in the US and SEPA Instant in the EU, with a focus on capturing a 27.1% share of electronic payments by 2028.
Are CBDC trials shaping national payment ecosystems?
Governments are defining use cases for central bank digital currencies through active pilot schemes. In Australia, the Reserve Bank’s Project Acacia (Phase 2) is exploring CBDC use cases with major banks on a national basis to early 2026, while Pakistan's central bank has announced a CBDC pilot trying to showcase the modernisation of its financial infrastructure to be completed in mid-2025.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the expanding e-commerce business and the increased global smartphone penetration can be linked to market growth. The market is predicted to maintain its trajectory as more people use the internet to procure online goods. The potential for digital payment industry's continued expansion looks promising. This is because more global businesses are creating more mobile-friendly payment methods. Developing economies where traditional banking methods fall short due to their limitations can be transformed with the emphasis and adoption of mobile payment solutions. Mobile payment even creates a safe space for financial transactions for those who have gone underserved. Individuals can use digital payment services without opening or having a traditional bank account.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 124.31 Billion |
| Market size value in 2033 | USD 367.53 Billion |
| Growth Rate | 12.8% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Digital Payment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Digital Payment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Digital Payment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Digital Payment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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