Global payment market set to triple to $139bn — Report

The Payment Processing Solutions Market, currently valued at $52.1 billion in 2023, is expected to surge to $139.7 billion by 2032, according to the latest S&S Insider report.

This projected growth represents a compound annual growth rate (CAGR) of 11.6 percent over the forecast period from 2024 to 2032, driven by the rapid expansion of digital payment technology and a steady global shift toward e-commerce.

“The growth in the market can be attributed to significant advancements in digital payment systems, as well as a widespread transition to online commerce. Businesses of all sizes are increasingly moving their operations online to meet the demands of a tech-savvy consumer base seeking fast, secure, and convenient payment options. Mobile devices, especially, are becoming primary tools for payment as digital wallets and mobile payment applications gain traction across multiple demographics,” the report read.

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It further disclosed that the forecasts suggest that by 2024, mobile proximity payment users will hit 380 million globally.

“This shift has emphasized payment flexibility, with consumers expecting seamless transactions across a variety of platforms, from smartphones and wearables to desktop online banking, which are reshaping the payment processing environment,” it said.

The growing adoption of digital wallets, point-of-sale (POS) terminals, and contactless payments is also anticipated to fuel revenue growth in this sector.

Globally, regulatory frameworks are evolving to enhance payment security. For example, Europe’s Payment Services Directive (PSD2) mandates additional authentication steps for transactions, increasing demand for sophisticated, secure payment solutions and fostering further market expansion.

The report added that “Moreover, the integration of Artificial Intelligence (AI), Machine Learning (ML), and blockchain technology is equipping industry players to offer rapid, secure, and transparent payment services.”

The rise in contactless payments since COVID-19 has driven market demand as more businesses embrace e-commerce and online payment systems. Additional drivers include the growing popularity of subscription-based services, digital currencies, and fintech innovations, which are set to sustain this growth.

Key macro trends such as rising disposable incomes and improving global internet penetration are also accelerating the shift toward digital payments.

“Expansion in this market is further supported by increasing consumer adoption of digital wallets and peer-to-peer payment systems,” the S&S Insider report added.