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Online Payment Market Size, Share & COVID-19 Impact Analysis, By Payment Type (Mobile Payment, Online Banking, and Digital Wallet), By Industry (Media & Entertainment, Retail, BFSI, Food & Beverages, IT &Telecom, Transportation, and Others), and Regional Forecast, 2020-2027

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI103417



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The global online payment market size was valued at USD 3,286.52 billion in 2019 and is projected to reach USD 17,643.35 billion by 2027, exhibiting a CAGR of 23.7% during the forecast period.

The increasing digitalization is boosting the payment market. The rising adoption of smartphones and the high penetration of internet connectivity are raising the demand for mobile payment transactions. Similarly, the government initiatives are also encouraging customers to adopt the contactless payment platforms. Additionally, the integration of technologies such as artificial intelligence and machine learning are likely to improve the security system, which will further enhance the consumer’s trust on the payment system.

An Infographic Representation of Online Payment Market

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COVID Impact

High Chances of Transmitting Coronavirus through Cash and Card to Impact Growth

The COVID-19 pandemic has caused a shift in the payment market. Amid the pandemic, there has been a significant change in consumer behavior which has resulted in the higher adoption of contactless transactions, boost in online commerce, increasing usage of digital wallets, among others. According to the MasterCard Corporation survey, 79 percent of consumers globally are using contactless payment to maintain safety during the pandemic. The survey also predicts that 46 percent of card users have swapped their cards with contactless payment methods such as mobile payment, digital wallets, and net banking. Also, the report states that the consumers are planning to use this payment mode post pandemic.

Additionally, credit cards and cash have high chances of carrying and transmitting the virus. Considering this, the World Health Organizations has urged people to adopt contactless payment as much as possible. Owing to this, PayPal Inc. measured the new account enrollment of 7.4 million net customers in April. Thus, the demand and growth of the payment is likely to increase significantly post COVID-19.

However, due to social distancing and a decline in the consumer spending, the demand has collapsed across industries such as entertainment, travel, airlines, hospitality, and other non-essential things. This has resulted in the reduction of transaction volume and cross-border payments. This is impacting the transaction volume of the payments.


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Increasing Adoption of Artificial Intelligence in Payment Technology is a Prominent Trend

The payment industry is expected to incorporate Artificial Intelligence (AI) to drive its increasing transactional volume and to enhance payment processing. Also, to detect payment fraud, AI is being adopted for tracking the customer data rapidly and efficiently. Machine learning algorithms can leverage historical records to determine patterns and predict the possibility of fraud and attacks before they occur. Similarly, AI offers easy and improved customer service by using the insights collected from the customer’s transaction data. For instance, Citigroup’s Citi Treasury and Trade Solutions leverages AI technology to smoothen its accounts’ payable process. This is likely to boost the online payment market growth in near future.


Rising Government Initiatives will Drive Adoption of Online Payment

The governments across several countries are increasingly adopting digital payments solutions to conduct transactions with businesses and citizens more simply and conveniently. For instance, the European Central Bank launched Target Instant Payment Settlement service by using the digital payment system to enable businesses and consumers across 19 European nations to transfer money in seconds.

With the adoption of online payment platforms, the government can increase the transparency along with security, which can help to reduce corruption and fraudulent activities. For instance, according to the report of The World Bank Research Observer 2017, by adoption of online transactions for distributing pension and wages, the Mexico government saw a 3.3% drop in its cost. Similarly, according to the report by NITI Aayog in partnership with the International Energy Agency 2020, in India, the government saved almost USD 8.8 billion by adopting the online banking payment mode in its fuel subsidy program during 2013-2020. Thus, this is likely to drive the market in the coming years.

Retail Industry is Likely to Boost Growth of Market

The increasing opportunities for E-commerce are likely to boost the online retail sales. Further, with the help of mobile payments, retailers can have access to the customer data such as their preference, regular intervals of shopping, top selling products, and more. Retailers are using the insights to offer proper customer services. For instance, Starbucks developed its mobile payment app for customers to select the menu by directly paying from their bank account. Along with this, it provides various discount codes, loyalty points, and services to increase customer engagement. Thus, the retail industry is creating immense opportunities for this market.


Security Concern is Expected to Hamper Payment Market

The security concerns related to loss of data and privacy is the major barrier for the adoption of the online payment system. According to PwC’s Mobile Payment Report, in 2019, across Europe, more than 50 percent of customers listed privacy as the key concern, whereas 75% of respondents stated that security is the major concern. Similarly, according to the Reserve Bank of Australia, the card-not-present transaction is the most prevalent type of fraud in Australia. This is likely to hamper the market growth.


By Payment Type Analysis

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Digital Wallet Segment to Gain Traction Backed by Excellent Customer Experience

Based on payment type, the market is categorized into mobile payment, online banking, and digital wallet.

According to the World Payment Report, globally, the non-cash transaction volume grew double-digit in the year 2016. Also, it is expected to gain a transaction volume of almost 8.6 percent of the total non-cash transactions. Digital wallet providers such as Google LLC, Amazon Inc., Facebook Inc., and Alibaba Group are offering value-added features and excellent customer experiences. For instance, PayPal Inc. offers cross border and real-time e-payment facilities across the countries. This is positively impacting the adoption of digital wallets amongst the customers.

By Industry Analysis

BFSI Industry to Adopt Online Payment Stoked by Demand for Real-time Money Transfer

The industries covered in the market are media & entertainment, retail, BFSI, food & beverages, IT & telecom, transportation, and others.

The banks and other financial institutes have adopted online banking which offers instant and real-time money transfer. Also, these banks have collaborated with mobile payment providers such as Apple Inc, Google LLC, and others to offer person-to-person instant money transfer. For instance, American express co-launched Amex Pay by collaborating with the banks in the U.K. to offer mobile payment solutions to the e-commerce merchants and customers. This is likely to surge the demand for this type of payment in the BFSI industry.


Asia Pacific Online Payment Market Size, 2019 (USD Billion)

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China is likely to be the dominant country and the major contributor to Asia Pacific. With the significant presence of companies such as Ali Pay, UnionPay and WeChat Pay (Tencent), China is witnessing retail payment revolution. In India, online transactions are increasing owing to the government initiatives. According to the National Payment Corporation of India, in January 2019, the cumulative volume of transactions through Unified Payment Interface (UPI) has surpassed the card transactions.

North America is expected to gain a major online payment market share of the global market. The rising E-commerce and online retail industry are driving the growth. US is likely to gain traction real-time payment solution owing to the tech-savvy consumers and enterprises. In Europe, the rising local competition along with the investment of international payment providers such as Alipay Co. Ltd. and PayPal Inc. are boosting the market growth. Additionally, the initiatives by Europe, such as Single Euro Payments Area intend to promote the use of electronic payment.

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Latin America is likely to exhibit a moderate growth. Countries in the Middle East & Africa such as the United Arab Emirates and Saudi Arabia are driving the adoption of online payment solutions owing to the increasing investment by Apple Inc. and MasterCard Corporation.


Alipay Plans to Expand its Business Outside China through Strategic Partnerships

Alipay Co. Ltd. is aiming to rapidly expand its online payment business outside China. The company is entering into strategic partnerships with the merchants, e-commerce companies, and small and medium enterprises. It has established various collaborations in Europe and is now focusing on the western countries, especially the U.S. The company is also collaborating with different payment platform providers across the globe such as Adyen, Darapay, and Barclaycard to offer its users the ease of cross border payment.

August 2019 – Alipay Co. Ltd., in partnership with the payment platform company Adyen provided online payment experiences for its users, merchants, and businesses. Adyen will facilitate payment options outside China for AliExpress, Tmall, Taobao, and Alibaba.com.

November 2019 – Alipay Co. Ltd. announced its target to reach 10 million European small and medium enterprises for its payment platform in the next five years. With this strategy, the company is planning to collaborate with different merchants and startups to expand its reach in the region.


  • Alipay.com Co Ltd. (Hangzhou China)

  • Adyen (Amsterdam Netherlands)

  • American Express Co. (New York USA)

  • ACI Worldwide Inc. (Florida USA)

  • JPMorgan Chase & Co (New York USA)

  • Facebook Inc. (California USA)

  • MasterCard Incorporated (New York USA)

  • Apple Inc. (New York USA)

  • Amazon Inc. (Washington USA)

  • PayPal, Inc. (California USA)

  • Visa, Inc. (California USA)


  • October 2018 – PayPal Holdings, Inc. entered into a strategic partnership with American Express Banking Corp. This partnership will enhance the online payment experience of American Express card members with Venmo and PayPal payments.

  • February 2019– Adyen launched a new payment service that supports the European Union’s Payment Service Directive (PSD2) API payment for merchants and consumers. The payment service directly provides application programming interfaces (APIs) into leading banks located in the United Kingdom.


The online payment market report highlights the leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.




Study Period


Base Year


Forecast Period


Historical Period

  2016 – 2018


  Value (USD billion)


  Payment Type; Industry and Region

By Payment Type


  • Mobile Payment

  • Online Banking

  • Digital Wallet

By Industry


  • Media & Entertainment

  • Retail

  • BFSI

  • Food & Beverages

  • IT & Telecom

  • Transportation

  • Others (education, consumer electronics, etc.).

By Region


  • North America (the U.S., Canada)

  • Europe (U.K., Germany, France, Italy, and the Rest of Europe)

  • Asia-Pacific (Japan, China, India, South east Asia, and the Rest of Asia- Pacific)

  • Latin America (Brazil, Mexico, and the Rest of Latin America)

  • The Middle East & Africa (South Africa, GCC, and the Rest of the Middle East & Africa)

Frequently Asked Questions

The global online payment market is projected to reach USD 17,643.35 billion by 2027.

In 2019, the market value stood at USD 3,286.52 billion.

The market is projected to grow at a CAGR of 23.7% in the forecast period (2020-2027).

The mobile payment segment is likely to lead in the market.

The rising government initiative is the key factor driving the market growth.

MasterCard, Visa Inc., Adyen, Alipay.com Co. Ltd, Amazon Inc., Facebook Inc. and Google Inc. are the top players in the market.

Asia Pacific is expected to hold the highest market share.

The retail and BFSI industries are expected to adopt the payment solutions.

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