P2P Payment Market: Overview
The Worldwide P2P Payment Market Was Valued At USD 2,680 Billion In 2023 And Is Projected To Reach USD 8,091 Billion By 2030, Demonstrating A Compound Annual Growth Rate (CAGR) Of Around 17.10% During The Forecast Period From 2023 To 2030.
P2P transactions entail money transfers from one person’s bank account to another. For instance, a P2P transaction is initiated and completed by two individuals using the internet to transfer money between banks. In addition, P2P payment solutions also let users submit payment requests to selected contacts for a certain amount. The expanding adoption of e-commerce, mobile banking, and online banking by consumers and the rising use of smartphones among younger generations are driving the rise of the P2P payment market. Furthermore, the expansion of the e-commerce sector in emerging nations favors market expansion. However, problems, including increased data breaches and security concerns with P2P payments, are anticipated to impede market expansion. In contrast, it is expected that throughout the forecast period, a rise in the need for quick and straightforward transaction services and the use of NFC, RFID, and host card emulation technologies in P2P payments would provide profitable prospects for market growth.
P2P Payment Market Drivers:
The market is being driven by rising smartphone adoption in both established and developing nations like China and India, as well as increased consumer awareness of the benefits of mobile and online payments. Users may now use hassle-free payment methods on their smartphones, stimulating the industry boom as high-speed internet connectivity alternatives like 4G and 5G become more frequently used. Furthermore, smartphone makers’ distribution networks have grown dramatically, increasing end users’ access to smartphone hardware. Additionally, investors can facilitate a variety of market risks, such as interest rates, unemployment rates, and risk of property values, with the help of a P2P payments service, which aids in the growth of the global P2P payments industry.
P2P payment Market: Restraints
Market expansion is anticipated to be hampered by rising data leaks and security problems. Furthermore, most people choose banks over peer-to-peer payment platforms due to the hazards involved. The market for peer-to-peer payments will likely be severely constrained as a result. In addition, service providers risk losing money because they provide guarantees against the loan without collateral, which could further harm market expansion.
P2P Payment Market: Segmentation
The global P2P payment market has been segmented into type, payment type, application, and end user.
Based on type, the market is divided into SMS/direct carrier billing, near-field communication, mobile web payments, and others. Among these, the mobile web payments segment led the market in 2021 and is expected to maintain its dominance throughout the forecast period. Since consumers only need a smartphone to make contactless payments, mobile web payments are the most popular and preferred method. This trend is driving the growth of the P2P payment market in this sector. However, the near-field communication sector is anticipated to develop quickly over the projection period, per the P2P payment market forecast. This development is attributable to several NFC technology traits, including improved security, quicker turnaround times, and growing end-user demand.
Based on application, the market is classified into hospitality & transportation, healthcare, media & entertainment, retail, energy & utilities, and others. In 2021, the retail category dominated the global market. The expanding cell phone usage and the parallel emergence of portable trade agreements encourage the segment’s expansion. These days, purchasing items is most frequently done using smartphone apps. Furthermore, retail firms are focusing on creating a customized setup of complete installment solutions to address specific difficulties in lending, executive, and safety. In the upcoming years, these factors will fuel the segment’s expansion. On the other hand, the hospitality & transportation category is anticipated to grow at the fastest rate over the forecast period. NFC (Near Field Communication) might replace cash or checks, which offers a secure and nearly instantaneous alternative. Although it is most frequently used for retail purchases, it can also be used for other in-store payment scenarios, such as parking meter payments, topping off public transportation cards, buying from vending machines, etc.
P2P Payment Market: Regional Landscape
In 2021, the Asia Pacific dominated the market for P2P payment. This is a result of numerous governments encouraging the use of electronic payments. Developing countries like India are also undertaking various efforts and programs to promote digital payments. The “Digital India” initiative is one instance of this. Among the market leaders in Asia-Pacific for P2P payments are China and Indonesia. The main factor influencing China’s potential P2P payments industry is the availability of cutting-edge FinTech services there. In addition, due to the absence of alternative investment alternatives and the higher returns provided by P2P investments, China has also been attracting investors.
P2P Payment Market: Competitive Landscape
Some of the main competitors dominating the global P2P payment market include- Alibaba Group Holdings Limited, Google, Amazon.com Inc., American Express Company, Money Gram International, Samsung Electronics Co. Ltd., WeChat, PayPal Holdings Inc., M Pesa, Apple Inc., PayPal Holdings Inc, and Visa Inc.
- June 2021: PayPort+, a state-of-the-art ongoing payment entryway system designed to provide financial institutions and installment specialist organizations flexible access to the continuous payment system in the United Kingdom, will launch, according to a report from Mastercard Inc. The PayPort+ agreement is made possible by Form3, a partner in technology, and Vocalink, a Mastercard company.
COVID-19 Impact on P2P Payment Market:
Many banks and financial institutions offer their customers new digital tools and strategies during the COVID-19 epidemic when businesses deal with operational issues, and mobile payment and P2P payments have seen significant uptake. The market for P2P payments has room to develop due to the increased adoption of smartphones worldwide. Additionally, several banks and fintech companies are implementing P2P payments to reduce losses incurred due to the pandemic crisis and increase their market share. The increase in COVID-19 cases worldwide has prompted many people to use P2P payment methods to send money to their family members in an emergency medical condition, which has boosted the expansion of the P2P payment business during the pandemic situation.
The Global P2P Payment Market is segmented as follows:
P2P Payment Market by Type
- SMS/Direct Carrier Billing
- Near Field Communication
- Mobile Web Payments
P2P Payment Market by Payment Type
P2P Payment Market by Application
- Hospitality & Transportation
- Media & Entertainment
- Energy & Utilities
P2P Payment Market by End User
- 18 to 30 Year
- 31 to 54 Year
- 55 to 73 Year
P2P Payment Market by Region
- North America
- The UK
- Rest of Europe
- Asia Pacific
- New Zealand
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
|P2P Payment Market Report Scope
|Market Size Value in 2022
||USD 2289 billion
|Revenue Forecast in 2030
||USD 8091 billion
||CAGR of 17.10 % from 2022 to 2030
|Base Year for Estimation
||2017 – 2022
||2023 – 2030
||Revenue in USD million and CAGR from 2023 to 2030
||Revenue forecast, company ranking, Trends
competitive landscape, and growth factors
|| Type, Payment Type, Application, End User, and Region
||North America; Europe; Asia Pacific; Latin America; Middle East & Africa
||U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico and Others
|Key Companies Profiled
||Alibaba Group Holdings Limited, Google, Amazon.com Inc., American Express Company, Money Gram International, Samsung Electronics Co. Ltd., WeChat, PayPal Holdings Inc., M Pesa, Apple Inc., PayPal Holdings Inc, and Visa Inc.