Digital Transaction Management Market Overview
The global Digital Transaction Management Market is estimated to surpass $58.5 billion mark by 2026 growing at an estimated CAGR of more than 118.9% 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 digital Transaction market, especially cloud based services during forecast period. In 2019, according to report given by Government of India, India has over 16 mobile wallet or e-wallet companies out of which 14 are Indian based mobile wallet companies thus showcasing growing demand for digital transactions. Digital Transaction Management 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 and electronic signature for document verification in documents will likely create the demand for Digital Transaction market.
Report Coverage
The report: “Digital Transaction Management Market– Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Digital Transaction Management Market.
By Type: Solutions (Transaction Gateway, Transaction Processing, POS Solutions, Transaction Security and Fraud Management), Services (Professional Services, Managed Services, Consulting Services, Support and Maintenance Services, Integration and Deployment Services)
By Type of Transactions: Remote Transactions, Proximity Transactions
By Transaction 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 Transactions, 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 and Others), APAC(China, Japan India, SK, Australia and Others), South America(Brazil, Argentina and others),and RoW (Middle east and Africa).
Key Takeaways
The increasing omni-presence 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 digital transactions can result in an increase in overall expenditure which can encourage companies to work towards the development of this technology.
Use of solutions such as Transaction Gateways has sped up the 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.
Digital Transaction Management Market, By Deployment, 2020
Digital Transaction Management Market
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Digital Transaction Management Market Segment Analysis - By Type of Transaction
During the forecast period, Proximity transactions segment is expected to grow at a CAGR of 28.7%. Mobile phones and POS devices are used to make the proximity Transactions. A number of companies currently offer applications allowing proximity Transactions. It is further referred to as in-store Transactions with respect to Transactions through a merchant's POS terminal in the case of a retail store or in-location Transactions. For short distances and work, proximity Transactions are specifically enabled when both the payer and the payee are present in the same place. This Transaction 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 Transactions differ markedly from remote Transactions, as it involves the presence of Transaction card details from one's own bank account and does not require any relation with a Transaction processor to facilitate the transaction and provide threat intelligence and cloud based services. The increasing adoption by brick- and mortar-based companies of mobile Transaction technologies further drives demand for proximity Transactions.
Digital Transaction Management Market Segment Analysis - By Industry Vertical
In terms of industry, the Digital Transaction Management 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 Digital Transaction Management market, which is 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, that are fuelling the Digital Transaction Management market, by facilitating booking only through online platforms. A study by India Brand Equity Foundation (IBEF) found that 81% of existing Digital Transaction Management users in India favor the digital and mobile mediums for banking over other non-cash Transaction procedures such as demand drafts or cheques.
Digital Transaction Management 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 Digital Transaction Management 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 the development of novel technologies such as contactless Transactions and near-field communication. A high rate of internet penetration, growth of e-commerce and micropayment options has contributed to the popularity of the Digital Transaction Management market in North America.
Digital Transaction Management Market Drivers
Increased Adoption of Mobile POS
Mobile point of sale has really taken advantage of the smartphone's ability to accept Transaction 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 minimises 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 and threat intelligence during Transaction, adding another level of security to digital Transactions. With mPOS, staff can see past transactions, online browsing history, loyalty rewards, 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 Transactions 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 Transactions 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 Digital Transaction Management, making mobile money important for each transaction.
Digital Transaction Management Market Challenges
Low Trust in Digital Transaction Management
Low trust in Digital Transaction Management 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 Digital Transaction Management and 38% have low confidence on security. Similarly, most of the consumers are reluctant to adapt to Digital Transaction Management as contactless Transaction presents huge unknown risk and fraud like leaked data, hacking and e-wallet vulnerabilities. Moreover less awareness about the benefits of using Digital Transaction Management over using cash or credit cards and debit cards for online Transaction and buying expensive items. All these conditions will restrain the market growth in the forecast period
Digital Transaction Management Market Landscape
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Digital Transaction Management 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 Digital Transaction Management Market.
Acquisitions/Technology Launches/Partnerships
In December 2019, Wirecard and Sisal Group signed agreement to collaborate in the field of contactless Transaction solutions for the brand SisalPay
In November 2019, Google, a Digital Transaction Management 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 Transaction Interface (UPI)-linked bank account.
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