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Digital payments to hit record USD 4.7 tln in 2020

Thursday 30 January 2020 13:52 CET | News

According to data gathered by LearnBonds.com, the worldwide digital payments market will jump to a record USD 4.7 trillion transaction value in 2020, with a 15.3% year-on-year growth rate.

This rising trend is set to continue in the following years, with the entire market reaching USD 6.7 trillion by 2023.

Digital payments have had a huge impact on the global payments industry traditionally dominated by cash, credit cards, debit cards, and prepaid cards. The surge of smart devices and a growing ecommerce market have led to the rapid adoption of digital payments, in both developed and emerging countries.

The global digital payments market is growing at an average annual rate of almost 14% from 2017 to 2023, revealed the Statista Survey on fintech industry. Digital commerce represents the most significant segment of the market, forecast to generate up to 67% of the transactions in the next three years.

However, mPOS payments are set to see the most significant rise in the future, jumping from USD 745 billion transaction value in 2019 to USD 2.1 trillion by 2023. The average transaction value per user in this segment will also increase from just over USD 791 in 2020 to USD 1,289 in 2023.

By geography, China is set to stay the most prominent digital payments market in the world, with 49% of the global market share by 2023. Just two decades ago, China was primarily a cash economy. However, ecommerce giant Alibaba and gaming group Tencent have exploited the country’s widespread smartphone ownership and helped drive a massive shift among Chinese consumers towards digital payments. Today, Chinese companies receive digital payments and use them as an entry point to offer consumers a range of both offline and online products and services.

The Statista report shows that together, China and the US will account for nearly 70% of the global digital payment’s transaction value by 2023. Although PayPal, Venmo, and Square dominate the US alternative payments market, technology giants like Google, Apple, and Facebook, as well as large banks such as JP Morgan, Chase, and Wells Fargo, are also pushing into this market. The goal of this massive shift is to increase the speed of money transfers for consumers, reduce transaction costs, and weave payment services into social networks.

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Keywords: Statista, survey, LearnBonds, digital commerce, digital payments, ecommerce
Categories: Payments & Commerce
Companies:
Countries: World
This article is part of category

Payments & Commerce