The COVID-19 pandemic accelerated the rise of contactless and digital payments driven by lifestyle changes. Nearly 82% of Americans have been using digital payments as of fiscal 2021. Digital payments have numerous perks, including faster processing, immediate settlement, increased security, convenience, and transparency. Globally, nearly 40 countries have real-time payments processing solutions, and more than 12 countries have announced their plans for adoption by 2023. The increase in the number of e-commerce industries, growing usage of smartphones with increased internet penetration, developments in mobile payment technology, and adoption of safe and secure payment gateways are the contributing factors to the growth of the digital payment industry.
According to a report by researchandmarkets.com, the global digital payment market is projected to reach $12.55 trillion by 2027, growing at a CAGR of 10.9%. As consumers are more inclined toward payment processes working as fast and efficiently as possible, the digital payments market is expected to boom in the long run. Further, businesses are increasingly adopting online payment systems to meet consumers' demands. The investors’ interest in the industry is evident from the ETFMG Prime Mobile Payments ETF’s (IPAY) 16.7% gains over the past month.
