Virtual Payment Systems Market - Forecast(2022 - 2027)

Report Code: ITR 0119 Report Format: PDF + Excel

Virtual Payments Market Overview

The global Virtual Payments Market is estimated to surpass $58.5 billion mark by 2026 growing at an estimated CAGR of more than 18.9% during the forecast period 2021 to 2026. Increased use of technology in financial transaction and rise in various e-commerce platforms are expected to accelerate the mobile payment market during forecast period. In 2019,  according to report given by  Government of India, India has over 16 digital wallets or e-wallet companies out of which 14 are Indian based mobile wallet companies. Mobile Payments in India are witnessing thriving growth with a compound annual growth rate of 12.7% in the number of non-cash transactions. Similarly, China mobile wallets are growing at rate of 22% with the total transaction volume of $41.1 trillion in 2019. Increasing adoption of non-cash transaction will likely to create the demand for Mobile payment market.

Report Coverage

The report: “Virtual Payments Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Virtual Payments Market.
By Type: Solutions (Payment Gateway, Payment Processing, Payment Wallet, POS Solutions, Payment Security and Fraud Management), Services (Professional Services, Managed Services, Consulting Services, Support and Maintenance Services, Integration and Deployment Services)
By Type of Payments: Remote Payments, Proximity Payments
By Payment Nature: Person to Person (P2P), Person to Business (P2B), Business to Person (B2P), Business to Business (B2B)
By Deployment Mode: Cloud, On Premises
By Application: Money transfers, Bill Payments, Airtime Transfer and Top-Ups, Travel and Ticketing, Merchandise and Coupons and Others
By Industry Vertical: BFSI, Telecom and IT, Media and entertainment, Healthcare, Retail, Travel and hospitality, Transportation and logistics, Energy and utilities, Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands and Others), APAC (China, Japan India, SK, Australia, Indonesia, Malaysia and Others),South America(Brazil, Argentina, Chile, Colombia and others), and RoW (Middle east and Africa).

Key Takeaways

  • The increasing omnipresence of mobile phones is a driving factor in increasing the number of users of mobile money and changing the dynamics of digital finance solutions.
  • Efficiency in money exchange is one of the major determinants of digital money technology development. Increasing the efficiency of mobile money transactions can result in an increase in overall expenditure which can encourage companies to work towards the development of this technology.
  • The use of payment gateways solutions has spiked the financial transaction process. In addition, the development of e-commerce websites has led to an increase in the number of online transactions that can be considered an attraction for the mobile money market.

Virtual Payments Market, By Deployment Model, 2020

Virtual Payments Market

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Virtual Payments Market Segment Analysis - By Type of Payments

During the forecast period, Proximity Payments segment is expected to grow at a CAGR of 28.7%. Mobile phones and POS devices are used to make the proximity payments. A number of companies currently offer applications allowing proximity mobile payments. It is further referred to as in-store payments with respect to payment through a merchant's POS terminal in the case of a retail store or in-location payments. For short distances and work, proximity payments are specifically enabled when both the payer and the payee are present in the same place. This payment system uses either barcodes or contactless interfaces to initiate the mobile money transaction. This is done through Near-field communication (NFC)-based technology present on an NFC-enabled phone, which has comprehensive details about the mobile wallet placed in the cloud or debit / credit card. This payee information is stored on the device in the POS terminal which is read by the corresponding NFC reader. Proximity digital wallets differ markedly from remote payments, as it involves the presence of payment card details from one's own bank account and does not require any relation with a payment processor to facilitate the transaction. The increasing adoption by brick- and mortar-based companies of mobile payment technologies further drives demand for proximity payments.

Virtual Payments Market Segment Analysis - By Industry Vertical

In terms of industry, the Virtual Payments market is mainly bifurcated into travel and ticketing, banking, and e-commerce services. Further analysis of each segment indicates banking and travel and hospitality to be the fastest growing application segment for the Virtual Payments market, which are projected to grow at a CAGR of 24.2% and 27.8%. Companies like MakeMyTrip, Yatra, Ibibo, Cleartrip (for airlines and hotels), redBus (for buses) are examples of online travel booking companies in India, which are fueling the Virtual Payments market, by facilitating booking only through online platforms. A study by India Brand Equity Foundation (IBEF) found that 81% of existing digital wallet users in India favor the digital and mobile money mediums for banking over other electronic payment solutions.

Virtual Payments Market Segment Analysis - By Geography

North America, which has displayed affinity over the years in adopting newer technologies, is the most lucrative region for the Virtual Payments market, generating a global demand share of 34.3% in 2020. With several innovative key market players located in North America such as PayPal Holdings, Inc. and Microsoft Corporation, this region is leading the innovative front with development of novel technologies such as contactless payments and near-field communication. A high rate of internet penetration, growth of e-commerce and micropayment options has contributed to the popularity of the Virtual recurring Payments market in North America.

Virtual Payments Market Drivers

Increased Adoption of Mobile POS

Mobile point of sale has really taken advantage of the smartphone's ability to accept payment on the spot. mPOS is the technology that frees all businesses from their brick-and - mortar and in-store transactions. mPOS device limits liability because transactions are encrypted and card information is not stored on the mPOS device, which minimizes the risk of security breaches and makes it easier and quicker to comply with regulations. Biometrics such as fingerprint and facial recognition can also be used with mPOS to confirm customer identities during payment, adding another level of security to mobile money payments. With mPOS, staff can see past transactions, online browsing history, loyalty rewards, digital wallets and other things that help staff understand the customer's need. These features have not only added to customer satisfaction but also improvement in staff performance.

Shift to Contactless payments due to Covid-19 Pandemic

The COVID-19 pandemic has had a significant impact on the mobile money market, as consumers and businesses are forced to change their buying habits. There has been an incredible spike in the adoption of mobile wallets, as contactless payments have become vital for purchases. Avoiding cash and card transactions to keep COVID-19 from spreading has prompted many subscribers to try out mobile wallets. Since the COVID-19 crisis complicates every day, consumers become accustomed to Virtual recurring Payments, making mobile money important for each transaction.

Virtual Payments Market Challenges

Low Trust in Virtual Payments

Low trust in Virtual Payments is a major factor which will hamper the market in the forecast period. For instance according to the report given by YourGov, about 43% of the digital users don’t trust Virtual Payments and 38% have low confidence on security. Similarly, most of the consumers are reluctant to adapt to Virtual Payments as mobile payment presents huge unknown risk and fraud like leaked data, hacking and digital wallet vulnerabilities. Moreover less awareness about the benefits of using Virtual Payments over using cash or credit cards and debit cards for online payment and buying expensive items. All these conditions will restrain the market growth in the forecast period

Virtual Payments Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Virtual Payments Market. Apple, PayPal, Samsung, JP Morgan Chase, Amazon, Tencent, Google, Ant Financial, One97 Communications Limited, Vodafone, Skrill, American Express, Sprint Corporation, Well Fargo, Mastercard, Visa, First Data, and AT&T are considered to be the key players of the Virtual Payments Market.

Acquisitions/Technology Launches/Partnerships

  • In December 2019, Wirecard and Sisal Group signed agreement to collaborate in the field of contactless payment solutions for the brand SisalPay
  • In November 2019, Google, a Virtual Payments provider, launched Google Pay for business apps, targeting small and medium size businesses, helping them transfer each rupee earned by the merchant directly into their Unified Payment Interface (UPI)-linked bank account.

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 1. Virtual Payments Overview
    1.1 Definitions and Scope
2. Virtual Payments   - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends By End Use  Industry
    2.3 Key trends segmented by Geography
3. Virtual Payments – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking-Top 5 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 Companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis (Comparison of General Price of Industry Solutions)
4. Virtual Payments – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies
    4.4 Customer Analysis
5. Virtual Payments – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis
6. Virtual Payments - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Virtual Payments – By Strategic Analysis (Market Size -$Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle/Market Life Cycle Analysis
8. Virtual Payments – By Type of Payments (Market Size -$Million/Billion)
    8.1 Remote Payments
    8.2 Proximity Payments
9. Virtual Payments – By Type (Market Size -$Million/Billion)
    9.1 Solutions
       9.1.1 Payment Gateway
       9.1.2 Payment Processing
       9.1.3 Payment Wallet
       9.1.4 POS Solutions
       9.1.5 Payment Security
       9.1.6 Fraud Management
    9.2 Services
       9.2.1 Professional Services
       9.2.2 Managed Services
       9.2.3 Consulting Services
       9.2.4 Support and Maintenance Services
       9.2.5 Integration and Deployment Services
10. Virtual Payments – By Type (Market Size -$Million/Billion)
    10.1 P2P
    10.2 B2P
    10.3 B2B
    10.4 P2B
11. Virtual Payments – By Deployment Model (Market Size -$Million/Billion)
    11.1 Cloud
    11.2On Premises
12. Virtual Payments – By Application (Market Size -$Million/Billion)
    12.1 Money Transfer
    12.2 Airtime Transfer and Top Ups
    12.3 Bill Payments
    12.4 Travel and Ticketing
    12.5 Merchandising and Coupons
    12.6 Others
13. Virtual Payments – By End Use Industry (Market Size -$Million/Billion)
    13.1 BFSI
    13.2 Telecom and IT
    13.3 Media and Entertainment
    13.4 Retail
    13.5 Healthcare
    13.6 Travel and Hospitality
    13.7 Transportation and Logistics
    13.8 Energy and Utilities
    13.9 Others
14. Virtual Payments - By Geography (Market Size -$Million/Billion)
    14.1  North America
        14.1.1  U.S
        14.1.2  Canada
        14.1.3  Mexico
    14.2  Europe
        14.2.1  Germany
        14.2.2  France
        14.2.3  UK
        14.2.4  Italy
        14.2.5  Spain
        14.2.6  Russia
        14.2.7  Netherlands
        14.2.8  Others
    14.3  APAC
        14.3.1  China
        14.3.2  Japan
        14.3.3  South Korea
        14.3.4 India
        14.3.5 Australia
        14.3.6 Indonesia
        14.3.7 Malaysia
        14.3.8 Others
    14.4 South America
        14.4.1 Brazil
        14.4.2 Argentina
        14.4.3 Chile
        14.4.4 Colombia
        14.4.5 Others
    14.5 RoW
        14.5.1 Middle East
        14.5.2 Africa
15. Virtual Payments - Market Entropy
    15.1 New product launches
    15.2 M&A's, collaborations, JVs and partnerships
16. Virtual Payments – Industry Competitive Landscape (Premium)
    16.1 Market Share – Global
    16.2 Market Share by Region
    16.3 Market Share By Type
17. Virtual Payments – Key Company List by Country Premium (Premium)
18. Virtual Payments - Company Analysis
    18.1 Company 1
    18.2 Company 2
    18.3 Company 3
    18.4 Company 4
    18.5 Company 5
    18.6 Company 6
    18.7 Company 7
    18.8 Company 8
    18.9 Company 9
    18.10 Company 10