Global Digital Payment And Security Market to Grow at Steady Pace, Driven By Surge in Online Orders during COVID-19 Pandemic Lockdown, Says PMR
Date : Apr 16, 2020 Author : PMR Editorial Staff Category : Technology
The COVID-19 pandemic has led the world economy towards uncertain times.
The COVID-19 pandemic has led the world economy towards uncertain times. Buoyed by the surge in uncertainties and public concern regarding the possibilities of transmission of corona virus via cash and card, the market for digital payment and security is witnessing substantial growth in users. Though the experts claim that probabilities of such transmissions are very low, as compared to other frequently touched objects, people choose to stay on the safer side. As a result, online and offline digital transactions have significantly increased.
An increase in the lockdown period across different nations is expected to decline the overall monetary value of transactions. However, even with the purchase of necessary goods, the digital payment market is expected to witness an increase in revenue.
Surge In E-Commerce Services Drives Market Growth
With sudden drift in consumer's choices towards digital payment, the mobile transaction services market is witnessing huge momentum with the influx of new products and services. Established players are bolstering their market presence with new services for contactless payments and digital wallets. The advisory issued by Reserve Bank of India urging the consumers to use digital banking facilities also plays a major role in the growth of mobile transaction services. Major players such as M-Pesa are waiving fees and enhancing the daily transaction limits to attract and acquire more consumers and enhance its customer database.
Besides, a retaliation to physical transactions, the augmenting use of e-commerce services and online purchases has emerged as a major catalyst fueling growth of the consumer mobile payments market. The lockdown period in this COVID-19 crisis is escalating the demand for home delivery services. Owing to the high penetration of mobile devices amongst the consumers, PMR expects a spike in the adoption rate of mobile payment services, which ultimately will increase the overall revenue. Addition of the older generation to the millennial population will boost the customer database of these mobile payment services. Acquaintance to advanced technology in this time of emergency is projected to have a very long term impact on the consumer mobile payments market.
Retailers are proactively adopting marketing strategies to gain maximum from this accelerated consumer participation in mobile payment transactions. They are integrating their platforms with different mobile payment services to enhance the ease of purchase of the consumers.
Increase In Online Frauds Augment Demand For Cyber Security
The spike in the inclination of consumers towards digital transactions is influencing the payment security market. Influenced by the lockdown, the growth in online shopping of essentials along with the offline digital transaction is changing the market for hackers. Insufficient information regarding advanced technology and apps for making online purchases makes the older generation highly susceptible to online fraud. PMR predicts the cases of data theft and cyber security to heighten in the COVID-19 pandemic owing to the increase in the online transaction by irregular users. Market players are bolstering their strategies related to the launch of new payment security software. With the global economy dealing with stagnant demand, PMR foresees a greater number of vendors to enter the payment security software market with new solutions.
Decline In Smart Card Transaction
This lockdown period of COVID-19 crisis is set to hard-hit the banking sector. With a decline in purchases and transactions, the market is set to witness a substantial decrement in revenue potential. The market for banking and smart cards will experience the major impact of COVID-19 pandemic. Attributing to the confined state of the world-wide population, payment from smart cards is supposed to significantly drop, negatively influencing the revenue generated by these cards for their respective banks.
Moreover, the fear of transmitting corona virus through smart card transactions is keeping the population at bay. The financial cards and payments market is projected to witness the long-term impact of the enhanced adoption rate of digital transaction services. The ease of use of digital transactions will act as a major market influencing factor deterring the masses from returning to their usual card-based transactions.
The impact of COVID-19 can be felt across all sectors including the retail, healthcare and entertainment sectors. PMR highlights the digital transactions in the entertainment industry to generate a major share of market revenue for the banks and service providers. The current rate of digital transactions is forecasted to continue even after the COVID-19 pandemic subsides, creating robust revenue prospects for the market players.
Report Highlights: Global Digital Payment and Security Market
- Parent market overview with changing trends
- Evolving market dynamics
- Changes in market capacity
- Recent trends and developments
- Potentially profitable prospects
- Competitive landscape scenario
- Strategic assessment of key market vendors
- Overall market performance matrix for the predefined projection period