P2P Payments Market Outlook, Share To 2030

(MENAFN- Straits Research) Peer-to-Peer (P2P) payment is a method wherein a user can make payments from his bank account to another person's bank account using the internet or a mobile device. Payments are split into two types depending on whether they are sent to accounts inside or outside the bank. Modern consumers prioritize accessibility and convenience above all else, especially regarding payments. P2P systems feature meager transaction fees of roughly 2% to 3%, and some may even be free because there is no need for an intermediary. P2P networks may be, in some respects, safer due to their ability to spot fraud and encryption. Certain apps and online services have started integrating biometrics and push alerts for every transaction.
The market for P2P payments is growing globally as more consumers accept mobile, online, and e-commerce services. Smartphone adoption is accelerating among younger generations as well. Additionally, the growth of the m-commerce industry in developing countries benefits the market. The COVID-19 pandemic positively impacted the development of the P2P payments business due to the increased demand for non-cash transactions worldwide to stop the spread of the virus and the rising consumer demand for P2P payments as a simple and convenient payment mechanism.
Market Dynamics
Increased Smartphone Penetration and Low Operation Cost Propel the Global P2P Payments Market
One of the primary factors propelling the market growth is the surge in smartphone usage in Asia-Pacific nations like China and India, as well as greater awareness of the advantages of online and mobile payments. As the adoption of high-speed internet connectivity options like 4G and 5G increases, customers can use hassle-free payment systems on their smartphones, which supports the growth of the P2P payment market. The distribution network of smartphone makers has also significantly grown, making smartphone devices broadly available to end-users. With the rise of smartphones and faster connectivity, people can now receive and send payments using their cellphones, propelling the P2P payment market.
P2P payment platforms also aim to boost business growth by lowering the cost of hiring people, running branches, and maintaining actual branches to lower operational expenses. Peer-to-peer payment networks give debtors a practical framework for securing repayment, reducing the market risk for investors. With the aid of a P2P payment service, investors can facilitate a range of market risks, including interest rates, unemployment rates, and risk of property prices, which helps the expansion of the global P2P payments market.
High Competition and Technological Advancements Create Prosperous Market Opportunities
Peer-to-peer (P2P) payments have a very fragmented market. A large number of players are eagerly competing for a prominent position. Important players either acquire new rivals or combine with them. The players also invest significant money in research and development initiatives. These initiatives lead to market growth for P2P payments and technological advancements, updates, and new P2P payment capabilities. There have been substantial mergers, acquisitions, joint ventures, and partnerships throughout the growth trajectory of the P2P payment business. The goal of the participants at these events is to advance their status as thought leaders in the P2P payment industry, which will eventually enhance growth possibilities.
Regional Insights
Asia-Pacific is projected to advance significantly and command the largest market share over the forecast period. This is attributed to several government incentives to use digital payments. Countries like India are also launching many programs to promote the adoption of digital payments. The "Digital India" initiative is one such illustration. China and Indonesia are significant contributors to the regional market. The key factor influencing China's potential P2P payments market is the availability of cutting-edge FinTech services there. China has also drawn investors due to the lack of alternative investment possibilities and more significant returns. Digital financial services are becoming more prevalent in Asia-Pacific. The emerging markets are expanding and assuming significant responsibilities within the financial technology ecosystem. The regional market growth is also anticipated to be fueled by contemporary online purchasing behaviors, increasing smartphone penetration, and shifting lifestyles.
North America will rise at a significant growth rate. The region is characterized by the presence of numerous prominent market participants. Additionally, North America has been a pioneering consumer of cutting-edge products. The usage of flexible payment methods is also being driven by the growing quantity of automated stores in the United States. The widespread use of flexible payment options in North America is typically attributable to the growth of web-based business. Applications for remote payments are being created by a few companies, enabling customers to make purchases from anywhere. For example, Sum-up announced the launch of flexible payments and invoicing across Europe in 2020 to assist customers in making payments securely and remotely through mobile devices. Extension of the fuel classification is anticipated to result from the growing use of virtual terminals for distant charging. These elements are expected to drive the region's P2P payments market.
Key Highlights

The global P2P payments market size was worth USD 2,219 billion in 2021. It is expected to reach USD 8,078.81 billion by 2030, growing at a CAGR of 17.53% during the forecast period (2022–2030).
Based on transaction mode, the global P2P payments market is categorized into Mobile Web Payments, Near Field Communication, SMS/Direct Carrier Billing, and Others. The Near Field Communication section is projected to expand significantly and hold the largest market share over the forecast period.
Based on end-user, the global P2P payments market is categorized into Consumer Credit, Real Estate Payments, Student Payments, and Small Business Payments. The Small Business Payment section is projected to expand significantly and hold the largest market share over the forecast period.
Based on application, the global P2P payments market is categorized into Media & Entertainment, Energy & Utilities, Healthcare, Retail, Hospitality & Transportation, and Others. The Retail section is projected to advance significantly and hold the largest market share over the forecast period.
Region-wise, the global P2P payments market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is projected to command the highest market share over the forecast period.

Competitive Players in the Market

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

Market News

In 2022, Alibaba
announced the introduction of Energy Expert, a sustainability platform that will assist clients globally in measuring, analyzing, and managing the carbon emissions of their business operations and goods produced. To help clients accelerate their sustainability journeys, the software-as-a-service products also offer actionable information and energy-saving suggestions.

Global P2P Payments Market: Segmentation
By Transaction Mode

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

By End-user

Consumer Credit Payment
Real Estate Payments
Student Payment
Small Business Payment

By Application

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

By Regions

North America
Europe
Asia-Pacific
LAMEA

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