Even three years since COVID-19 triggered a boom in digital payments, the entire market continues surging, reaching a new record transaction value and more users than ever before.
According to data presented by Trading Platforms, the total transaction value in the digital payments sector is expected to grow by 15% year-over-year and hit almost $9.5trn in 2023.
Mobile POS Payments Growing Faster than Digital Commerce
The global digital payments industry has seen many innovations over the past years, including mobile wallets, P2P mobile payments, real-time payments and cryptocurrencies. This new, simple-to-use, cashless payment methods have drawn millions of users and pushed the total transaction value to new record highs.
According to a Statista survey last year, the global digital payments industry has seen $8.38trn worth of transactions, 11% more than the year before. In 2023, the market is set to witness even bigger growth of 13% year-over-year, with digital payments reaching nearly $9.5trn in transaction value.
Digital commerce, the market’s largest segment, will make up 63% of that value, or $5.99trn, growing by 11% year-over-year. Although much smaller in transaction value, mobile POS payments will continue growing faster. Last year, mobile POS payments hit $2.86trn in transaction value. This figure is expected to grow by 17% YoY and hit $3.35trn in 2023.
By 2025, the entire digital payments market is forecast to reach an $11.95trn value. The transaction value in the mobile POS segment will grow by another 32% to $4.43trn in this period.
US Digital Payments Market Growing Faster than Chinese
While China remains the world`s largest digital payments market, generating $3.85trn or one-third of total transaction value this year, the US market will still grow faster. According to Statista, Americans are expected to make over $2trn worth of digital payments in 2023, or 15.6% more than a year ago. On the other hand, the transaction value in the Chinese market is forecast to grow by 9.7% year-over-year.
Together, the two countries will generate 62% of total transaction value in the digital payments segment, far more than any other country. Far below, the United Kingdom ranked third with $433 million worth of digital payments in 2023. Japan and Germany follow, with $325 million and $245 million, respectively.
The Statista survey also revealed the number of people using digital payments would grow by 6% YoY to 4.43 billion in 2023. By 2025, the number of users in the digital payments segment is set to touch almost five billion worldwide.