Digital Payments Market Size - By Type (Digital Commerce, Digital Remittances, Mobile POS Payments s), By End-User Industry (Retail, BFSI, IT & telecommunication, Healthcare, Travel & Hospitality, E-commerce, Government) & Global Forecast, 2023 - 2032

Digital Payments Market Size - By Type (Digital Commerce, Digital Remittances, Mobile POS Payments s), By End-User Industry (Retail, BFSI, IT & telecommunication, Healthcare, Travel & Hospitality, E-commerce, Government) & Global Forecast, 2023 - 2032

Global Digital Payments Market size is poised to record more than 16.5% CAGR from 2023-2032.

Widespread deployment of biometric authentication methods, such as facial recognition and fingerprint scanning for enhancing security and convenience in digital payments will drive the market growth. To cite an instance, in July 2023, leading financial tech firm Paytm announced that it was working on novel technology for enabling payments through facial recognition. The adoption of biometric authentication methods also renders benefits in terms of security and convenience for addressing potential concerns, including data privacy and breaches.

The overall digital payments market is segmented based on type, end-user, and region.

In terms of type, the market size from the digital remittances segment may record appreciable CAGR from 2023-2032 driven by benefits, such as convenience, affordability, and accessibility. The growing government and regulatory support for recognizing the benefits of digital remittances had led to the rising number of policies to support growth and ensure consumer protection. Digital remittance services are faster than traditional methods, such as bank transfers and physical money transfers. Ease of accessibility through wide range of devices, including smartphones, tablets, and computers will also outline the industry expansion.

With respect to end-user, the digital payments industry size from the BFSI segment is expected to expand up to 2032. Several digital payment methods and technologies are largely adopted by the BFSI sector for enhancing the customer experiences and streamlining the financial operations. BFSI institutions are also embracing blockchain technology and cryptocurrencies, such as Bitcoin for enabling secure and decentralized digital transactions.

Regionally, North America digital payments market size is projected to observe over 6% CAGR through 2032 due to the higher penetration of internet connectivity and smartphones across the region. As per the Internet Statistics in Canada by MadeinCA, the internet penetration in Canada is one of the largest and is expected to reach 99% by 2023 or 2024. The growing popularity of digital platforms to make payments on-the-go has further made digital payments more accessible and convenient to the vast population.