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.
Mobile POS Payments to Become US$ 2.1 trillion Worth Industry
In 2017, the global digital payments market was valued at US$ 3.1 trillion, revealed the Statista data. In the last three years, this value increased by more than 50 percent, reaching 4.7 trillion in 2020. Statistics indicate the entire digital payments industry is set to continue growing by CARG of 12 percent by 2023.
Digital commerce represents the leading revenue stream in the market with a US$ 3.7 trillion transaction value in 2020 or almost 80 percent of the entire market value this year. Statista survey 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 US$ 4.5 trillion 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 US$ 368.6 billion. Since then, mobile payments rose more than 175 percent, reaching US$ 1 trillion value in 2020. The dominant upward trend is expected to continue in the following years with mobile payments becoming US$ 2.1 trillion 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 US$ 447 in 2017 to US$ 791 in 2020. By the end of 2023, this amount is expected to jump to nearly US$ 1,290.
More Than 6.1 Billion People Will Use Digital Payments by 2023
Statistics show that in 2017, more than 4.1 billion people all around the world were using digital payments. Since then, the figure jumped 25 percent, reaching 5.2 billion this year.
The following years are set to witness the growing number of users in the digital payments market, reaching 6.1 billion by 2023, or almost 50 percent 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 1.6 billion by 2023.
Analyzed by geography, China represents the leading digital payment market globally with a US$ 1.9 trillion transaction value in 2020. The country is forecast to reach almost 50 percent market share by 2023. With a US$ 1 trillion 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 percent of the global digital payment’s transaction value in the next three years.
The United Kingdom ranked third with a US$ 176 billion market value in 2020. Japan and Germany follow with US$ 173.1 billion and US$ 127.4 billion, respectively.