The Business Research Company’s Digital Payments Global Market Report 2021: COVID-19 Growth And Change To 2030
Prosus has agreed to buy BillDesk, the oldest digital payments company in India, for an all-cash deal of $4.7 billion in one of the largest acquisitions ever in India’s digital payments space. BillDesk will be merged with Prosus’ PayU business to create one of the world’s biggest digital payments providers, with an annual payment volume lying around $147 billion. Prosus had already made other investments in the Indian market in the food delivery and classified advertising space. However, it is now focused on grabbing opportunities in the massive digital payments market in the country as well as around the globe. This is evident from the latest forecast on the digital payments market by The Business Research Company. Prosus has made an investment of around $6 billion in India since 2005 and this deal would take the figure into double digits. It is worthy to note that General Atlantic is the single largest stakeholder in BillDesk with more than a 14% stake, and in 2019, Visa had bought a stake of about 12.6% in the company.
Speaking of the numbers, the global digital payments market size was worth $29.66 billion in 2020 according to the data on the Global Market Model. The digital payments market is expected to be $32.27 billion by the end of 2021 at a compound annual growth rate (CAGR) of 8.77% and continue to grow to $46.94 billion in 2025 at a CAGR of 9.83%. North America is the largest region in the global digital payments market, accounting for around 40% of the market in 2020. Asia Pacific is the second largest region accounting for 33% of the global market.
The Prosus-BillDesk deal comes ahead of the expected regulatory regime from the Reserve Bank of India for payment aggregators and payment gateways. Payment system intermediaries are anticipated to face more regulatory scrutiny. It is interesting to note how this will shape the current growth of the market and its trends.
The demand for digital payments is driven mainly by features such as rapid onboarding and convenience of use. Customers look for flexibility, transparency, and friction-less processing of onboarding and payments. They are interested in seamless procedures, which is making industry players such as Square and PayPal moving towards the automation of most of their onboarding processes to reduce the onboarding time to just a few minutes.
Digital payments are very easy to use compared to conventional methods as they only require a bank account or phone number and a smartphone with an internet facility. The ease of adoption increases the number of users, thereby contributing to the growth of the market.
Among the different trends within the digital payments market, contactless payments technology is growing in its popularity. Many users are increasingly opting for contactless payments technology such as mobile wallets, contactless cards, and other similar options, as these are more secure and convenient to use. Contactless payment technology uses radio frequency identification (RFID) or near field communication (NFC) for the transmission of amounts among users.
The Digital Payments Global Market Report is one of a series of new reports from The Business Research Company that provides digital payment market overviews, analyzes and forecasts digital payments market size, share, digital payments market players, digital payments market segments and geographies, the market’s leading competitors’ revenues, profiles and market shares.
About The Author
Moïn has over a decade of experience in market research, analysis, and consulting. He has worked with some prominent market intelligence firms in India including Progressive Digital Media, Ovum, and GlobalData. At TBRC, he is involved in reporting insights on technology and media sectors, along with market data and trend analysis, and understanding competition dynamics. His project experience includes a market strategy study for an AI-based marketing software for telecom companies. He has worked for several clients including Amazon, Sony, Flytxt, Fujitsu, and several tech companies. He has a bachelor’s degree in Biotechnology and a postgraduate degree in management from IMI Belgium.
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