While it was already under way prior to the pandemic, the global shift to digital payments has been positively affected by the crisis.
According to the research data analyzed and published by Finnish website Sijoitusrahastot, the global digital payments market grew by 21 per cent YOY in transaction value during H1 2020. Statista projects that the market’s total transaction value will grow by 23.7 per cent YOY in 2020 to reach $4.93 trillion. The number of users is also set to increase by 10.1 per cent YOY to reach 3.47 billion.
Asia’s Digital Payments Market to Reach $2.88 Trillion in 2020
In the period between 2020 and 2024, the global digital payments will grow at a 13.4 per cent compound annual growth rate (CAGR) to reach $8.17 trillion by 2024. The market’s top segment is digital commerce, estimated to grow at 4.8 per cent YOY reach $2.93 trillion in 2020. By 2024, it is set to grow to $4.11 trillion, growing at a CAGR of 8.9 per cent.
China will take the lead in digital payments, growing to $2.31 trillion, as well as in digital commerce, reaching $1.17 trillion in 2020. For Asia as a whole, digital payments will reach $2.88 trillion in 2020 as per a Statista report.
According to McKinsey, Asia generated $900 billion in 2019 as payment revenue, almost half the global total. Between 2018 and 2019, digital payments in Asia Pacific grew by 24.7 per cent. Comparatively, the growth rate was 14.1 per cent in the global market, 12.2 per cent in Europe and 5.6 per cent in North America.
China has a dominant role in the market, thanks to mobile payments. Based on a Finextra report, 70 per cent of China’s consumers use mobile wallets regularly. It estimates that in 2020, 80 per cent of global mobile wallet revenue will come from China.
Capgemini projects that in 2020, mobile payments in APAC will grow at 13.9 per cent YOY to reach $277.5 billion. In contrast, the figure will be $229.1 billion in Europe, growing at 6.2 per cent YOY and $184.8 billion in North America, growing at three per cent.
The full story, statistics and information can be found here: https://sijoitusrahastot.org/global-digital-payments-market-to-grow-by-23-7-in-2020-to-4-9-trillion/
