Grand View Research believes that the demand for digital payment solutions will surge in the next few years. The firm predicts that the overall digital payment market will grow to $236.10 billion by 2028, a figure that corresponds to a CAGR of 19.4 percent for the period between 2021 and 2028.
That trend reflects a broader shift toward online and mobile payment options. Grand View noted that COVID-19 is likely to have a positive impact on the digital payment market, since the pandemic has pushed people away from cash and toward contactless payment alternatives. In that regard, Accenture has reported that $7 trillion worth of transactions that once would have been completed with cash will migrate to a digital format by 2023.
Many of those payments will be secured with biometric authentication, with face and fingerprint recognition standing as some of the most popular modalities. All told, Grand View expects $2.5 trillion in payments will be cleared with biometrics within the next three years, which is in line with Juniper’s $3 trillion prediction for 2025.
Large enterprises represented the biggest segment of the digital payment market, and are increasingly turning to digital payment services because they make it easier to manage a high volume of payments while offering greater transparency and reducing the amount of time needed for each transaction. The financial sector will also drive growth as more banks move forward with their digital transformations and introduce new digital payment products.
Physical stores, meanwhile, will boost the market with self-checkout solutions. Walmart is currently testing self-checkout technology at stores in Arkansas, and on-premises deployments will make up the largest segment of the broader digital payment market.
The $236.10 billion figure is nearly double Grand View’s earlier forecast for the digital payment market. In 2019, the firm predicted that the market would reach $132.5 billion by 2025.