The digital payments market has enjoyed steady growth, especially as the Covid-19 pandemic and lockdowns triggered a boom in the sector.
Riding this wave of success, the total transaction value in the digital payments sector is expected to grow by 15% year-over-year and hit almost $9.5 trln in 2023, according to data compiled by TradingPlatforms.com.
Mobile POS payments growing faster
The digital payments industry has seen many innovations over the past years, including mobile wallets, P2P mobile payments, real-time payments and cryptocurrencies. These new, simple-to-use, cashless payment methods have drawn millions of users and pushed the total transaction value to new record highs.
According to a Statista survey last year, the global digital payments industry saw $8.38 tlrn worth of transactions, 11% more than the year before. In 2023, the market is set to witness even bigger growth of 13% year-over-year, with digital payments reaching nearly $9.5 trln in transaction value.
Digital commerce, the market’s largest segment, will make up 63% of that value, or $5.99 trln, growing by 11% year-over-year.
Although much smaller in transaction value, mobile POS payments will continue growing faster. Last year, mobile POS payments hit $2.86 trln in transaction value and this figure is expected to grow by 17% YoY to hit $3.35 trln in 2023.
By 2025, the entire digital payments market is forecast to reach an $11.95 trln value. The transaction value in the mobile POS segment will grow by another 32% to $4.43 trln in this period, according to estimates.
US growing faster than China
While China remains the world’s largest digital payments market, generating $3.85 trln or one third of total transaction value in the past year, the U.S. market will still grow faster.
Americans are expected to make over $2 trln worth of digital payments in 2023, or 15.6% more than a year ago, according to Statista. On the other hand, the transaction value in the Chinese market is forecast to grow by 9.7% year-over-year.
Together, the two countries will generate 62% of total transaction value in the digital payments segment, far more than any other country. Far below, the United Kingdom ranked third with $433 mln worth of digital payments in 2023. Japan and Germany follow, with $325 mln and $245 mln, respectively.
The Statista survey also revealed the number of people using digital payments would grow by 6% YoY to 4.43 bln in 2023. By 2025, the number of users in the digital payments segment is set to touch almost 5 billion worldwide.