Market Trends of Third Party Payment Industry
The Point of Sale Segment is Expected to Drive the Market
- Cash transactions continue to dominate the payment processing system segment, and it is unlikely that future predictions of a cashless state will be realized anytime soon. However, this segment is still witnessing a radical shift toward eWallets because of the dramatic change from cash.
- Moreover, stores and services across the world have been rapidly adopting and integrating mobile payment applications, such as PayPal, Samsung Pay, AliPay, Apple Pay, and WeChat Pay, to accept payments. This trend will be maintained between 2024 and 2029 due to changes in lifestyles and consumer habits, as well as the rapid growth of PayPal third-party payments.
- High-growth regions, like APAC and EMEA, are expected to drive the growth of the third party payment market and are also projected to witness a double-digit reduction in the use of cash at point of sale in the future.
- The growing adoption of mobile point of sale (POS) devices is also a factor contributing to this segment's growth. Industry experts predicted the number of mobile point-of-sale transactions to triple by 2023, according to a recent blog from Mobile Payments Today.
- Moreover, companies such as Google have made it convenient for smartphone users to make contactless payments. These technologies make use of near-field communication (NFC) technology on supported smartphones and smartwatches. A user stores his/her credit or debit card information on the Android Pay account, and when the user wants to pay for an item or service, the phone or watch should be placed near the retailer's point-of-sale terminal.
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Asia-Pacific is Expected to Register a Major Growth in the Market
- Innovation in the field of payments is being driven mainly by Asia with regard to Mobile Payments. Consumers in Asian markets, especially with regard to payments and shopping, are more than willing to take equal measures of comfort and security for all aspects of their online lives.
- The increasing prevalence of digital transactions has spurred businesses in the region to swiftly embrace electronic payment systems, facilitating secure and convenient transactions. Concurrently, governments and prominent organizations are actively advocating for cashless transactions as part of broader digitalization initiatives, further propelling the adoption of point-of-sale (PoS) systems in the market. Consequently, regulatory bodies are promoting cashless payments and spearheading digitization endeavors to foster the growth of the point-of-sale market.
- Government initiatives to support digital payments are another factor driving an advanced market in Asia-Pacific. Thus, the three main factors impacting the third-party payment market in Asia-Pacific are e-commerce, PoS proliferation, and government initiatives.
- In addition to the convenience of shorter lines, elimination of cash-on-hand issues, and fast-moving queues throughout the region, consumers are able to benefit from a more efficient and convenient payment process.
- As countries such as China and India are adopting a digital payment option through mobile wallets, the Asia-Pacific market has been expected to grow significantly. The ubiquitous mobile devices, advanced digital infrastructure, and the growing usage of apps drive digital/mobile wallets, which are growing rapidly in Asia-Pacific.
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