With the world moving towards a dynamic digital age, population, especially in urban areas, are looking for a faster, secure and easier option for digital transactions. The recent years have seen an exponential growth in the mobile industry and a rise in the demand of easier payment methods. Technological companies and financial institutions have laid a foundation to design a simple, global and secure payment solution which will enable the customers to make payments easily.
Latest forms of payment transactions like mobile apps and mobile wallet are gaining popularity among the populace. Hence, digitalization of payment method is expected to transform the dynamics of payment technology market by producing new participants across mobile network carriers, handset original equipment manufacturer (OEM), terminal and reader’s manufacturers, Europay MasterCard Visa (EMV) chip, Near Field Communication (NFC), Bluetooth Low Energy (BLE), Quick Response Code (QR Code) and Magnetic Secure Transmission (MST) have made the payment transactions both technically and commercially feasible.
Since digital payment transactions are convenient, cost effective, durable, portable and reliable, the payment technology market is expected to flourish in the coming years as a result. However, cost of deployment of emerging payment technology, integration of payment technology and misuse of stored data or privacy breach are some of the factors which pose challenges and are inhibiting the growth of the market.
Opportunities in e-commerce industry and global adoption of digitalization services can lead to augmentation of the payment technology market and its overall growth. However, pressure from big players in the industry and lack of innovative business models may stagnate the payment technology and deter overall growth for this market. Though, further advancement is expected in the design and concept of payment technology as more established technology players such as Apple, Samsung, Google, MasterCard, Visa, PayPal, Ingenico, Alipay, Square, Verifone, First Data, Cayan, Adyen, and Worldplay, etc. launch their product in the market.
The global next generation payment technology market will have an unprecedented growth with double digit growth rate because of the associated advantages of multi-level security, convenience and advanced quality. The total transaction value through payment transactions will grow at a CAGR of 35.98% from 2016 to 2022 and the retail application segment is expected to grow at a CAGR of 36.64% during the forecast period.
The NFC payment technology market is growing in size, at the highest rate due to contactless payment technology in mobile handsets and wearable products, and its ease of integration with existing payment systems and increase in payment transactions are driving the growth of the market. However, it is estimated that EMV will dominate the market.
North America accounted for the highest share in global payment technology market and is expected to grow at a CAGR of 58.26% from 2016-2022. Asia-Pacific (APAC) region is second to North America and will witness a fast growth at a rate of 41.58% through the forecast period.
Next generation payment method has a huge potential since it is one of the fastest growing markets globally. BIS Research has done an extensive report on the future of ‘Next Generation Payment Technology Market’. The report provides an in-depth analysis of the key development strategies and market trend dynamics which includes drivers, restraints and opportunities prevailing in the industry. For further queries, please write to us at [email protected] or call us at : +1 650 228 0182