Digital Payments Market - Growth, Trends, Forecasts (2020 - 2025)

New York, June 03, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Digital Payments Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05903691/?utm_source=GNW
The global landscape of payments and transactions is changing rapidly, owing to the growing enterprises and consumer propensity toward digital transformation and proliferation of smartphones. The technological advancements in the space of smartphones, digital payment cards, and POS at retail terminals are fuelling the market growth.
- Government initiatives across the globe are helping enhance the global digital payment space; the emphasis on moving towards a cashless economy is driving favorable regulations; also, the digital payment ecosystem helps governments curb tax frauds and maintain money trails. ?
- For example, Italy has one of the lowest rates of credit cards used in the European region and has the highest VAT frauds in the region. To curb this, the government has set aside USD 3 billion for the next fiscal year to finance the bonuses to be offered as an incentive to those who use electronic payment services over cash.
- The global demand for smartphones is increasing significantly and with technological advancements such as 5G are expected to further augment the global smartphone numbers. According to Ericsson, in 2019, the global smartphone subscriptions stood at 5.6 billion and are expected to reach 7.4 billion by 2025 or 84% of all the subscriptions.? This is another major driving force for the market.
- Cross-border payments are usually slow and expensive to perform, but such payments play a vital role in global trade. The typical national banking infrastructure cannot handle cross-border payments, thus resulting in independent and non-uniform development in software platforms and technologies complicating such payments.

Key Market Trends
BFSI Segment to Dominate the Market

- Robust growth in the digital banking has made it imperative for banks to transform their existing operations into an omni-channel approach, involving web, mobile, or physical branch. Thus, banks are offering various forms of digital experiences such as online banking, digital banking, internet banking. mobile banking, and neo banking. ?
- As per Fujitsu’s Digital Transformation for Banking Services Report 2018, the motivation for digital transformation in BFSI industry is improvement of efficiency for the banking entity (31%), followed by growth generation (30%).?
- Online banking is being practiced by almost all banks to reduce the hassle of customers who want to visit the physical bank branch. Some banks even allow the customers to deposit cheque by simply taking a picture of it. As per Pepper’s change in Banking Report 2019, the easy and efficiency of performing transactions was the maximum reason why customers choose online banks. ?
- In emerging markets, such as China and India, the penetration of mobile banking is stronger as compared to developed markets. This is because population in these countries are price sensitive and mobile banking offers cash back, vouchers, and coupons that can be redeemed on future transactions?

India to Account for the Most Significant Share in Asia-Pacific

- Digital payments are a relatively new trend in India. However, it is growing at a fast pace due to favorable regulatory environment, infrastructure upgrades, high smartphone penetration, and subsidized data plans. ?
- The reason for high smartphone adoption is the launch of affordable phones by Chinese brands that offer flagship-grade features and capabilities. These brands’ target market is rural India, also, who are looking to upgrade their feature phones. Thus more Indians are relying on apps for facilities, such as grocery or fuel management. This is an enabler for mobile payments. ?
- Demonetization was a massive currency culling exercise taken up by the government in November 2016, which made 86% of the currency in circulation invalid. The step was taken to fight against black money, terror financing, and counterfeit currency. This was a major driving force for the adoption of digital payments. ?
- The Digital India program is a flagship program of the Government of India with a vision to transform India into a digitally empowered society. Ministry of Electronics & Information Technology (MeitY) is working on strengthening of Digital Payment infrastructure and creating awareness through promotions of digital payments. ?

Competitive Landscape
The market is moderately concentrated. The competitive rivalry in the market studied is moderate, as a good number of players prevail. Despite the existence of several companies in the market studied, firms are required to keep innovating their products, in order to gain a sustainable competitive edge over their rivals and provide product differentiation.

- April 2020 - Amazon India plans to give zero-interest credit to customers to buy products on its platform or pay bills, partnering with lenders, like Capital Float and Karur Vysya Bank, for the initiative. The service will allow consumers to purchase essentials on Amazon’s platform.
- April 2020 - Paytm Payments Bank partnered with Mastercard to issue virtual and physical debit cards. The deal will see the bank’s beta customers issued with cards in an initial rollout, followed by its entire user base in short order.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05903691/?utm_source=GNW

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

__________________________