Coronavirus has caused a significant impact on the way consumers shop and make payments. With social distancing rules in place, many of them have embraced contactless payments and digital wallets as a safer way to manage their money.
In 2017, the global digital payments market was valued at $3.1trn, according to figures pulled from market and consumer data provider Statista. In the last three years, this value increased by more than 50%, reaching 4.7trn in 2020. Statistics indicate the entire digital payments industry is set to continue growing by CARG of 12% by 2023.
Digital commerce represents the leading revenue stream in the market with a $3.7trn transaction value in 2020, or almost 80% of the entire market value this year. Statista survey data revealed that online buying and selling of goods and services would remain the largest revenue stream of the global digital payments industry in the following years, reaching $4.5trn transaction value in 2023.
However, statistics show the following years are set to witness a significant rise in mobile POS payments. In 2017, this segment of the digital payments market was valued at $368.6bn. Since then, mobile payments rose more than 175%, reaching $1trn value in 2020. The dominant upward trend is expected to continue in the following years with mobile payments becoming $2.1trn worth industry by 2023.
The last few years have also witnessed a surge in the average transaction value of the mobile POS payments, growing from $447 in 2017 to $791 in 2020. By the end of 2023, this amount is expected to jump to nearly $1,290.
Statistics show that in 2017, more than 4.1bn people all around the world were using digital payments. Since then, the figure jumped 25%, reaching 5.2bn this year.
The following years are set to witness the growing number of users in the digital payments market, reaching 6.1bn by 2023, or almost 50% more compared to 2017 figures. Statistics show that mobile POS payments witnessed the most substantial increase, with the number of users growing from 824 million in 2017 to 1.6bn by 2023.
Analyzed by geography, China represents the leading digital payment market globally with a $1.9trn transaction value in 2020. The country is forecast to reach almost 50% market share by 2023. With a $1trn transaction value, the United States ranked as the second-largest digital payments industry in the world. The Statista report showed that together, China and the US would account for nearly 70% of the global digital payment’s transaction value in the next three years.
The United Kingdom ranked third with a $176bn market value in 2020. Japan and Germany follow with $173.1bn and $127.4bn, respectively.
- We've also highlighted the best POS systems in 2020
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Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he's been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom's Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he's not working he's usually out and about on one of numerous e-bikes in his collection.