Global digital payments market: stimulating and limiting factors
Research and Markets evaluated the success of last year in selected financial services sectors. According to the results, the global digital payments market amounted to more than $89 billion.
According to analysts, the sector is actively developing, and the reason for this includes several factors. One of them is an active increase in the number of smartphones equipped with NFC. Such devices allow making contactless payments for a large number of goods and services. The second factor is called the spread of the Internet and improving its quality. The record increase of internet trading platforms, whose popularity grew during the pandemic, plays an important role. Analysts predict a CAGR of about 15.2% over the next few years. It shows an average growth rate expressed as a compounded percentage. By 2026, turnover in the digital payments sector should reach the $180.4 billion mark.
Despite the good dynamics, experts note the problems of the segment, which limit its opportunities. The key factor here is the lack of unified standards and rules for international payment transactions. Besides, the issue of market regulation is still open.
It is also necessary to consider that more and more providers are giving solutions for digital payments based on clouds – both public and private. These options are becoming increasingly available.
In turn, the company Boston Consulting Group has published its own assessment of the market. According to its data, the payments market will reach $2.9 trillion in revenues by 2030. This figure is almost 2 times higher than in 2020.
The pandemic has slowed the growth rate of the sector, but it has only sagged by 2.5% in 2020 compared to 2019. Last year, retail transaction volumes in the U.S. increased 8.3 percent, while in Europe and the U.K. they averaged 11.7 percent.
Analysts predict that the Russian market will make 146 billion dollars by 2030.
It is worth noting the progress of digital payments growth in Russia. For example, in 2010, the country had one of the lowest card transaction volumes. At that time, the leader in the world belonged to Norway, where the market was 40 times better developed than in Russia. By 2020 Russia reduced the gap to 1.5 times, and it is expected that in 10 years the country will catch up with and surpass the European states.
The global digital payments market has enormous potential, but for it to function as effectively as possible, it is necessary to pay attention to the problems and take timely measures to solve them.