Online payment, also known as electronic payment or digital payment, is generally an electronic exchange of monetary funds between sellers and buyers through the internet. It helps in instant purchases and sales taking place on the internet. It further saves processing costs and has transparency in the transactions. The growth of the online payment market is driven by various factors, including the following:
- The growing demand for online payments for domestic and cross-border transactions is likely to propel the adoption of digital payment solutions in banks. This is further expected to augment the online payment market growth during the forecast period.
- The increasing demand for real-time payments across the globe, along with changing lifestyles including busy and hectic schedules of consumers, is likely to escalate the market demand for online payment. Online payment offers better customer convenience and instant payment solutions.
- The e-commerce service providers are working on improving their facilities to hold a standard position in the competitive market by employing their point of sale systems, to enhance their offerings in online payment solutions.
The market finds extensive application in various industries, including media and entertainment, retail, BFSI, food and beverages, IT and telecom, and transportation, among others.
The BFSI segment is likely to account for the largest market share on account of the increasing preference for online payments for financial services, stockbroking businesses, and insurance. This dominance can also be attributed to the growing internet usage, along with the increasing adoption of smartphones. The increasing adoption of online banking in banks and other various financial institutes that provide real-time and instant money transfers is expected to boost the growth of the segment as well as the overall digital payment market.
The rising demand for online payment has further led banks to collaborate with mobile payment providers like Amazon pay, Google wallet, and Apple wallet, among others, to offer instant money transfers to every individual. This is expected to escalate the growth of the segment over the upcoming years.
The demand for online payment is thriving across the globe. North America, especially, is expected to lead the global market due to the growing e-commerce and online retail industry in the region. The United States is expected to gain traction in real-time payment solutions due to the tech-savvy enterprises and consumers. The rising deployment of advanced technology and the increasing number of unmanned stores in the United States are expected to enhance the market development for online payment.
The surging adoption of mobile payment options and digital wallets among consumers, along with growing digitalisation in the United States, is expected to propel the market growth over the coming years.
Various key players are increasingly investing in the research and development of the market to cater to the thriving demand for the market. Some of the leading key players in the market are as follows:
Adyen N.V. was established in 2006 and is a single platform to protect revenues, control finances, and accept payments. The offers leading businesses across the globe along with end-to-end payment abilities, data enhancements, as well as financial products in a single solution.
Mastercard Incorporated is a technology and payment company that trades with authorization, clearing, and settlement of payment transactions. The company provides a huge variety of payment solutions for debit, credit, commercial, and prepaid cards; digital payments, payment system security, and real-time account-based payments; transaction services like domestic and cross-border transactions.
Amazon Payments, Inc. is an online payment service that helps consumers to make checkout on any site securely and fast across the globe. The company offers businesses a convenient and familiar purchasing experience that further enables their consumers to expend less time checking out and more time shopping. The company serves its customers across the globe.
Other market players include PayPal Holdings, Inc., Visa Inc, Google LLC, and ACI Worldwide, Inc., among others.
In the coming years, the demand for online payment methods is likely to grow exponentially in the coming years owing to the rising drive for digitalization across the globe. With more and more economies looking forward to making the system completely cashless, the market is expected to witness robust growth. This would provide more key players with growth opportunities and more new companies would enter the market, intensifying the competition further.
Author Bio – My name is Jessica Lucas and I am working in “Claight Corp.”as a senior content writer. I write about the Market Research niche.