Global Peer-to-Peer Payments Forecast: Market Analysis 2023

Major players in the P2P payment market are, Alibaba Group Holding Limited, Apple Inc., Circle Internet Financial Limited, ClearXchange, CurrencyFair Ltd., Dwolla Inc., Google LLC, One97 Communications Limited, PayPal Holdings Inc., SnapCash, Square Inc., TransferWise Ltd., WePay Inc., Wise Payments Limited, and Zelle.

The global p2p payment market grew from $2.62 billion in 2022 to $3.04 billion in 2023 at a compound annual growth rate (CAGR) of 16.4%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The p2p payment market is expected to grow to $5.61 billion in 2027 at a CAGR of 16.5%.

The P2P payment market consists of revenues earned by entities by providing P2P payments to pay for services and split bills.Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers.

The value of goods in this market includes related services sold by the creators of the goods.

Peer-to-peer (P2P) payment is a mechanism through which users can transfer funds from their bank account to another individual’s account via a digital medium, i.e., the internet or a mobile device. Payments are categorized based on transfer, i.e., to an account within the bank or outside the bank. The P2P payment is used to send and receive money from mobile devices through a linked bank account or card.

Asia-Pacific was the largest region in the P2P payment market in 2022.North America was the second largest region of the P2P payment market.

The regions covered in the P2P payment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The main types of transaction modes in P2P payment are mobile web payments, near-field communication, and SMS/direct carrier billing, and others.Mobile web payments refer to payment services operated under financial regulation and performed from or via a mobile device.

Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods.The different types of payment include remote, proximity payments that are used in several applications such as media and entertainment, energy and utilities, healthcare, retail, hospitality, transportation, and others.

The various end users include personal and business.

The increase in acceptance of online banking, mobile banking, and e-commerce by consumers is expected to propel the P2P payment market’s growth going forward. Online banking enables users to complete all banking-related tasks, including money transfers, access to historical transactional data, cash withdrawals, deposits, etc., with a single click. Customers can execute financial transactions on a secure website or mobile application with online mobile banking or Internet banking. Due to advanced and convenient features, people adopting online banking and mobile banking is promoting P2P payments market. For instance, according to a recent global survey of 2,899 in April 2022 conducted by Finder Row Pty Ltd., an Australia-based proprietary company, 26% of respondents in India claim to have a digital bank account, and another 13% intend to open one within the next year, bringing the country’s overall percentage of those with one to 39%. By the end of 2027, the percentage is anticipated to increase even more, reaching 46%. Therefore, the increase in acceptance of online banking, mobile banking, and e-commerce by consumers is driving the demand for the P2P payment market.

Technological advancement is a key trend gaining popularity in the P2P payment market.Companies operating in the P2P payment sector are focused on introducing P2P payment solutions to strengthen their market position.

For instance, in July 2021, Payveris, a US-based cloud-based software company, launched Payveris P2P, a cloud-based money movement and digital payments platform. The Payveris P2P functionality would be integrated into client banking apps, allowing end-users to send money to other bank accounts identified by email addresses and phone numbers.

In June 2020, Square, a US-based company providing free point-of-sale apps, acquired Verse for an undisclosed amount.The acquisition would help Square to expand its presence in Europe.

The Verse’s team would join the cash app division.Verse is a Spain-based company specializes in peer-to-peer payment app that works across Europe.

Verse app has the main feature of letting user send and receive money from their mobile device, and users don’t have to pay any fees.

The countries covered in the P2P payment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The P2P payment market research report is one of a series of new reports that provides P2P payment market statistics, including P2P payment industry global market size, regional shares, competitors with an P2P payment market share, detailed P2P payment market segments, market trends and opportunities, and any further data you may need to thrive in the P2P payment industry. This P2P payment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.