Global Digital Payment Market Expansion

A new report predicts that global digital payments will reach a market capitalization of $3 trillion by the end of the decade.

Key Findings

A report by Research and Markets indicates that global digital payments revenue will surpass $3 million by 2028, with a robust compound annual growth rate (CAGR) of +10%, driven by several factors:

1. Credit Card Usage: Rising credit card usage accounts for 40% of the growth.
2. Digital Wallets: These are expected to see significant adoption, particularly in developing economies with low financial inclusion levels.
3. Instant Payments: Predicted to account for 20% of all transactions by 2028, nearly doubling current levels as cash use declines.
4. Blockchain Technology: Increasing reliance on blockchain for payments, with over 560 million users of digital assets anticipated by the end of 2024.
5. Web3 Payments: Retail users are expected to double by 2028, driven by lower fees and anonymity.
6. Stablecoins and CBDCs: Financial institutions are exploring stablecoins, while regulators are focusing on central bank digital currencies.

Regional Insights

The Asia Pacific region is expected to contribute significantly to the $3 trillion market, providing up to 50% of the projected revenue, surpassing North America.

Fraud Prevention through AI

Major players like Visa, Mastercard, Apple, and Paypal are leveraging AI tools against security breaches and compliance issues, with predictions of AI and Web3 integration becoming mainstream by 2028.

Latin America Growth

Latin America is forecasted to triple its digital payment revenue by 2027, reaching $0.3 trillion. This growth will be fueled by fintech innovations, e-commerce expansion, and financial inclusion. Key trends include:

• Rising e-commerce integration with new payment alternatives.
• Significant adoption of credit and debit cards.
• High growth in real-time payment solutions and account-to-account transfers.
• Expected doubling of digital asset holders to over 55 million by 2027, led by Argentina and Brazil.

Despite a projected triple-digit growth, Latin America will only account for 10% of global digital payments, lagging behind Asia Pacific and North America.

Increasing Adoption in LATAM

Government initiatives and local innovations are boosting financial inclusion, with Brazil implementing central bank digital currencies and initiatives to enhance digital payments.

Conclusion

As the digital payments landscape evolves, privacy concerns remain a challenge, potentially impeding progress towards a fully digitized financial ecosystem.