Digital payments, also known as non-cash transactions, are growing globally. But how do the major regions perform?
Digital commerce – consumer transactions made via the internet and directly related to online shopping – and mobile POS payments – so called “mobile wallets” that enable point-of-sale transactions via smartphones – are the pillars of the biggest FinTech segment: digital payments. A segment with a promising forecast. Until 2022 digital commerce and mobile POS payments combined are expected to reach a global segment size of US$ 5,411 bn. That equals a CAGR of +14.5 percent based on a global segment size of US$ 2,754 bn in 2017. Only accounting for 8.0 percent in 2017, mobile POS payments are expected to contribute almost 25.0 percent in 2022.
Regional-wise China is taking the leading spot in 2017 with a total digital payments transaction value of US$ 820 bn, followed by the U.S. with US$ 802 bn. Third place is covered by Europe with US$ 614 bn.
By 2022 global digital payments are expected to double their transaction value. Although the positions of the main regions remain untouched, China is expected to be in a more dominant spot in the given year with an expected transaction value of US$ 2,027 bn. On second place the U.S. with a transaction value of US$ 1,412 bn, followed by Europe with a transaction value of US$ 1,040 bn.
By combining both information and calculating the CAGR for each region we can get a comprehensive understanding with regards to the transaction value distribution. While the compound annual growth rate for Europe and the U.S. is between 11.1 and 12.0 percent, China is connected to a CAGR of almost 20.0 percent.
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