In the modern world, digital payments have become increasingly popular. They offer convenience and efficiency, allowing users to securely send and receive money without having to carry around cash.
Total transaction value in the digital payments sector will increase by 15% year-over-year, reaching roughly $9.5 trillion in 2023, according to recent research from TradingPlatforms.com.
Separate research from Statista is inline with TradingPlatforms.com’s findings, and similarly, also highlights how much the digital payments space is growing. In research conducted last year, Statista found that the digital payments industry worldwide had $8.38 trillion in transaction value, an 11% increase from a year prior. This year, transaction value is expected to reach as much as $9.5 trillion, a 13% year-over-year growth.
Payments Innovation, and the Pandemic
The pandemic has been one of the primary drivers in this increased growth, as more consumers shifted to digital when paying for goods and services. Not only did e-commerce grow during this time, but so did the use of contactless and cashless payments as consumers became more comfortable paying this way.
With the emergence of new payment innovations such as cryptocurrency, real-time payments, peer-to-peer (P2P) payments, and mobile wallets, users have faster, more convenient, and easy-to-use payment methods like never before.
These new payment methods are particularly useful for both the underbanked and the unbanked as it allows them to have better control of their finances, as well as access to more affordable banking services. With more of the world’s population taking advantage of these financially inclusive services, we can only expect that these digital payment transactions will continue to grow.
Growth in Digital Payments
While growth is evident across the globe, digital payments volume varies vastly from one country to another. For example, China reigns as the world’s largest digital payments market and this year will see a growth of 9.7% in digital payments compared to last year. In contrast, the U.S is expected to generate 15.6% more in digital payments this year compared to a year prior, but that also signals how much consumer behavior has shifted in the region over the past year, where adoption of e-commerce continues to accelerate, whereas in China it’s essentially the norm.
As we edge closer towards a more cashless society, the payments industry continues to provide solutions, granting financial inclusion to a wider population. Indeed, the entire payments infrastructure is undergoing a massive restructuring, prompting banks, payments organizations, and fintechs to rework their offerings to accommodate these shifts, and this rapid evolution within the digital payments landscape shows no signs of slowing down.