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2021

P2P Payment Market

P2P Payment Market Transaction Mode (Mobile Web Payments, Near Field Communication, SMS/Direct Carrier Billing and Others), Payment Type (Remote and Proximity), End User (Personal and Business), and Application (Media & Entertainment, Energy & Utilities, Healthcare, Retail and Hospitality & Transportation): Global Opportunity Analysis and Industry Forecast, 2021-2030

BI : Financial Services

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Author's: Pramod Borasi| Shadaab Khan | Onkar Sumant
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P2P Payment Market Outlook – 2030 

The global P2P payment market size was valued at $1,889.16 billion in 2020, and is projected to reach $9,097.06 billion by 2030, growing at a CAGR of 17.3% from 2021 to 2030. P2P payment is transfer of funds from one person’s bank account to another individual’s bank account. In addition, P2P transaction is initiated and completed by two people exchanging funds with banks by using internet to complete the transaction. In addition, P2P payment solution also helps individuals to request for a certain amount of payment to a particular person choosing from their contacts. Furthermore, majority of P2P end users are millennials, owing to high smartphone use and increase in adoption of m-commerce.

Increase in acceptance of online banking, mobile banking, and e-commerce by consumers and rise in adoption of smartphones among younger generation boost the P2P payment market growth. In addition, increase in the m-commerce industry across emerging countries positively impact growth of the market. However, factors such as rise in data breaches and security issues in P2P payments is expected to hamper the market growth. On the contrary, increase in demand for fast & hassle-free transaction services and growth in usage of NFC, RFID, and host card emulation technology in P2P payments are expected to offer remunerative opportunities for expansion of the market during the forecast period.

P2P-Payments-Market-2021-2030

The mobile web payments segment is expected to garner a significant share during the forecast period. Mobile web payments is the most popular and preferred method of making mobile payment as users only need a smartphone, which drives growth of the P2P payment market in this segment. However, the near field communication segment is expected to witness growth at the highest rate during the forecast period, owing to varied features of NFC technology such as higher security, faster transaction processing and growing demand of NFC technology among the end users.

Region wise, the P2P payment market was dominated by Asia-Pacific in 2020, and is expected to witness the highest growth rate during the forecast period, owing to expansion of FinTech infrastructure and hefty investments from private & public players in the developing nations of Asia-Pacific region.

The report focuses on growth prospects, restraints, and trends of the P2P payment market analysis. The study provides Porter’s five forces analysis to understand impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the P2P payment market share.

P2P Payment Market
By Transaction Mode
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Near Field Communication segment will dominate the market by the end of 2030

Segment Overview

The global P2P payment market is segmented on the basis of transaction mode, payment type, end user, application, and region. By transaction mode, the market is segregated into mobile web payments, near field communication, SMS/direct carrier billing and others. On the basis of payment type, it is categorized into remote and proximity. Depending on end-user, it is fragmented into personal and business. As per application, it is divided into media & entertainment, energy & utilities, healthcare, retail and hospitality & transportation. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

P2P Payment Market
By Payment Type
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Remote segment will dominate the market throughout the forecast period

Competitive Analysis

The key players operating in the P2P payment industry are Alibaba.com, Apple Inc., Circle International Financial Limited, Google LLC, One97 Communications Limited (Paytm), PayPal Holdings Inc., Square, Inc., WePay Inc., Wise Payments Limited and Zelle. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.

P2P Payment Market
By End User
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Personal segment will maintain the lead during 2021 - 2030

COVID-19 Impact Analysis

During the COVID-19 pandemic wherein businesses are coping with operational challenges, many banks & financial institutions are providing their customers with new digital tools and techniques among which mobile payment and P2P payments have witnessed significant adoption. In addition, rise in adoption of smartphones across the globe provides growth potential for the P2P payment market. 

Furthermore, various banks and fintech industries are adopting P2P payments to improve loss suffered, owing to the pandemic situation to improve their market share. In addition, rise in COVID-19 patients across the globe have led many individuals to adopt P2P payment options to transfer funds to their relatives in the medical emergency, which boosts growth of the P2P payment market in the pandemic situation.

P2P Payment Market
By Application
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Hospitality & Transportation segment will grow at a highest CAGR of 22.1% during 2021 - 2030

Top Impacting Factors

Growth in Adoption of Smartphones Among Younger Generation

Increase in rate of adoption of smartphones among youth across countries of Asia-Pacific such as China and India and rise in awareness about benefits of mobile payments, online payments, and others drive growth of the market. In addition, increase in adoption of high-speed internet connectivity such as 3G and 4G has enabled customers to have hassle-free payment services on their smartphones, which propels growth of the P2P payment market. 

P2P Payment Market
By Region
2030
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific region would exhibit the highest CAGR of 20.1% during 2021 - 2030

Moreover, extensive growth in distribution network of smartphone companies has made smartphone devices easily available for end users. For instance, Samsung, Micromax, and Karbonn are major mobile phone company across the globe, owing to their pan India distribution channel, thus making online services accessible for rural population via their mobile phones. Rise in use of smartphones and rise in faster connectivity have enabled people to receive and make payments via their smartphones, which propels growth of the P2P payment market. 

Increase in M-Commerce Industry Across Emerging Countries

Mobile commerce has increase in past few years, owing to increase in smartphone penetration and faster connectivity. Consumers are gradually opting for mobile shopping for many goods and services such as clothing and accessories, groceries, health & beauty, computers & electronics, and books, as it is easy to order and receive at doorstep. In addition, special offers and discount coupons offered by various vendors available on m-commerce platforms attract customers toward mobile P2P payment service. 

In addition, mobile commerce platform allows people to send and receive money through wireless handheld devices such as cellphones and tablets to their family and relatives, which accelerates growth of the P2P payment market around the world. Moreover, m-commerce provides a very convenient and easy to use systems to conduct family transactions propels growth of the market across the globe.

Key Benefits For Stakeholders     

  • The study provides an in-depth analysis of the P2P payment market forecast along with the current trends and future estimations to explain the imminent investment pockets.
  • Information about key drivers, restraints, & opportunities and their impact analysis on the global P2P payment market is provided in the report.
  • Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
  • The quantitative analysis of the market from 2020 to 2030 is provided to determine the P2P payment market trends.

P2P Payment Market Key Segments

By Transaction Mode

  • Mobile Web Payments
  • Near Field Communication
  • SMS/Direct Carrier Billing
  • Others    

By Payment Type

  • Remote
  • Proximity

By End User

  • Personal
    • 18 to 30 Year
    • 31 to 54 Year
    • 55 to 73 Year
  • Business

By Application

  • Media & Entertainment
  • Energy & Utilities
  • Healthcare
  • Retail
  • Hospitality & Transportation
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe 
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Rest of Europe 
  • Asia-Pacific 
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America 
    • Middle East 
    • Africa

Key Market Players

  • Alibaba.com 
  • Apple Inc. 
  • Circle International Financial Limited 
  • Google LLC 
  • One97 Communications Limited (Paytm) 
  • PayPal Holdings Inc. 
  • Square, Inc. 
  • WePay Inc.
  • Wise Payments Limited 
  • Zelle

P2P Payment Market Report Highlights

Aspects Details
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By TRANSACTION MODE
  • Mobile Web Payments
  • Near Field Communication
  • SMS/Direct Carrier Billing
  • Others
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By PAYMENT TYPE
  • Remote
  • Proximity
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By END USER
  • Personal
    • 18 to 30 Year
    • 31 to 54 Year
    • 55 to 73 Year
  • Business
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By APPLICATION
  • Media & Entertainment
  • Energy & Utilities
  • Healthcare
  • Retail
  • Hospitality & Transportation
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

PAYPAL HOLDINGS INC., ALIBABA.COM, GOOGLE LLC, SQUARE, INC., Circle Internet Financial Limited, Zelle, WePay Inc., Wise Payments Limited, APPLE INC., ONE97 COMMUNICATIONS LIMITED (PAYTM)

Analyst Review

Adoption of P2P payments has increased over the years, owing to rise in online payment technology allowing end users to transfer funds from their bank account or credit card to another individual's account via the internet. In addition, key players are integrating advanced technologies to establish a secure connection between accounts of end users and trusted third-party vendors, by designating their bank accounts or credit card information for transferring and accepting funds. Furthermore, with the help of P2P payments, end users can automatically pay their bills using speech or just a tap on their mobile devices.

Key providers of the P2P payment market such as Alipay.com, PayPal Holdings, Inc., and One97 Communications Ltd. account for a significant share in the market. Moreover, companies are acquiring other P2P payments and other digital payment companies to improve their existing services and customer base. For instance, in August 2020, Metal Pay, a blockchain-based payment platform acquired blockchain explorer platform of EOS, Blocks.io, which has 10,000 daily users. In addition, with the acquisition, Metal Pay hopes to work together with Blocks.io developers to expand capabilities of the firm’s proprietary blockchain.

Furthermore, companies are partnering and collaborating with each other to provide integrated payment solution for better quality and user experience, which augments growth of the market. For instance, in July 2020, Circle and Genesis formed strategic partnerships to accelerate adoption and acceptance of digital dollar stablecoins in mainstream finance. In addition, the partnership includes a $25 million investment of capital into Circle from Digital Currency Group (DCG), for enhancing Circle's new suite of products for businesses and developers with new USD Coin (USDC) yield and lending services, which, in turn, drives growth of the market.

Moreover, with rise in number of mobile payments apps, various organizations are innovating new solutions to provide singular payment solutions for majority of payment apps, which propels growth of the market. For instance, in January 2020, Paytm launched unified QR code for merchants to enable business to accept unlimited payments through Paytm Wallet, Rupay Cards, and all UPI-based payment apps directly into their bank account at zero percent fee. Therefore, these factors notably contribute toward the growth of P2P payment market. According to the industry experts, the P2P payments are expected to witness increased adoption in the coming years, owing to increase in m-commerce industry across the emerging countries.

 

Author Name(s) : Pramod Borasi| Shadaab Khan | Onkar Sumant
Frequently Asked Questions?

The P2P payment market is estimated to grow at a CAGR of 17.3% from 2021 to 2030.

The P2P payment market is projected to reach $9,097.06 billion by 2030.

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Increase in acceptance of online banking, mobile banking & e-commerce by consumers, and rise in adoption of smartphones among younger generation etc. boost the P2P payment market growth.

The key players profiled in the report include Alibaba.com, Apple Inc., Circle International Financial Limited, Google LLC, and many more.

On the basis of top growing big corporations, we select top 10 players.

The P2P payment market is segmented on the basis of transaction mode, payment type, end user, application, and region.

The key growth strategies of P2P payment market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

Near Field Communication segment would grow at a highest CAGR of 21.0% during the forecast period.

Hospitality & Transportation segment will dominate the market by the end of 2030.

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P2P Payment Market

Global Opportunity Analysis and Industry Forecast, 2021-2030