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Growth of Digital Payment Market Attributed to Consumer Demand for Contactless Payment Methods

Growth of Digital Payment Market Attributed to Consumer Demand for Contactless Payment Methods

One of the new industries that has gained during the pandemic is the digital payments market. Steady revenue growth of the digital payment market can be attributed to growing smartphone penetration and rising preference for m-commerce. Global smartphone penetration is predominantly surging every year, owing to its reduced pricing and increased trendy specifications that keep changing every year with better set of offerings for consumers each time. Easy access to Internet connectivity via smartphones has resulted in increased demand for m-commerce and digital payment by online customers. Also, the significance of m-commerce is strengthened by the fact that over 35% of the online customers visiting to popular e-commerce websites tend to use an app for their purchases instead of the web version. An increasing number of individuals have shown increased inclination to adopt digital payment options through smart devices, including smartphones and wearables. Digital payment options deliver convenient and faster payments as compared to cash payments.  According to a report from EMERGEN RESEARCH, The global digital payment market size is expected to reach USD 215.88 Billion at a steady CAGR of 13.3% in 2028.  Active stocks in the markets this week include MastercardLynx Global Digital Finance CorporationVisaFidelity National Information Services, Inc.Marqeta, Inc..

EMERGEN RESEARCH continued: “The swift and seamless checkout experience is a must from a customer’s point of view. Digital payment gateway solutions provide seamless and fast checkout benefits to customers, thereby improving online shopping experience. According to a survey, about 40% of e-commerce customers do not make a purchase if they find a complex checkout option. Also, it has been found that impulse shoppers contribute to significant share of e-commerce sales, and thus offering an easy payment option will go a long way in boost e-commerce sales growth.  The growing adoption of enterprise digital wallets is closely related with increased focus on customer loyalty. Increased integration between loyalty programs and enterprise digital wallet allow large enterprises to analyze consumer spending behavior and buying preferences to market personalized offerings to customers. Also, better customer insights gathered from loyalty programs linked with digital wallets are beneficial in offsetting relative expenses associated with acquisition of new customers.”

Read More: Western Union Accelerates Digital Money Movement for Postal Networks Worldwide

Lynx Global Digital Finance Corporation BREAKING N EWS Lynx Global Announces DA5 Technology Integration with Telecom Giant PLDT Subsidiary PayMaya  – Lynx Global Digital Finance Corporation (“Lynx” or the “Company”) today announces its subsidiary Direct Agent 5 Inc. (“DA5”), has launched a technology integration with PayMaya Philippines (“PayMaya”), a subsidiary of Voyager Innovations, the digital innovations company of PLDT and Smart.  As reported by FINTECHNEWS Philippines, “PLDT, a major telecom from the Philippines, alongside of KKR, a Global investment firm, Tencent, the China-based internet giant, and IFC, a member of the World Bank Group have acted as the principal investment group of Voyager Innovations (“Voyager”).”

Since 2018, this investor group has invested $325 MM USD into Voyager to provide greater access to digital financial services across the Philippines through its financial technology arm, PayMaya. The funding of Voyager and is intended to support PayMaya as it pursues its mission to accelerate digital and financial inclusion in the Philippines and enable the wider Filipino population to participate in the digital economy.

PayMaya was previously globally recognized as the World’s Best Online Payments Solution at the 9th Emerging Payments Awards in London, UK.

Said Raymond Babst, CEO of DA5, “We are proud to have now partnered with PayMaya to offer to PayMaya and their huge customer base, the evolving services offered by way of the DA5 traditional, and digitally innovative set of payment solutions.  Together we now work towards our shared and mutual vision to provide seamless financial services and solutions to the majority of the Philippine populous that remains underbanked and underserved. This DA5 and PayMaya technology partnership now allows Filipinos throughout our Country of nearly 110M people to utilize DA5 directly to load funds to PayMaya.”

Read More: Klarna Secures Additional Funding as Consumers Demand Smarter Alternatives to Shop, Bank, & Pay

These forms of joint initiatives are further in support of the goals of the Bangko Sentral ng Pilipinas (“The Philippines Central Bank”), to increase the share of digital payments to 50% of all retail transactions and expand financial inclusion to 70 percent of Filipino adults by 2023, as part of its recently released Digital Payments Transformation Roadmap 2020-2023.

As it relates specifically to the type of working relationship now shared between DA5 and PayMaya, stated Shailesh Baidwan, PayMaya President, at the inquirer.net. “This radical shift to cashless for the Philippines will only continue accelerating in 2021 as we offer more services and forge more enterprise partnerships that are relevant for many consumers.”

PayMaya provides more than 35 million Filipinos with access to financial services through its consumer platforms. Customers can conveniently pay, add money, cash out, or remit through its over 250,000 digital touchpoints nationwide. Its Smart Padala by PayMaya network of over 39,000 partner agent touchpoints nationwide serves as last-mile digital financial hubs in communities, providing the unbanked and underserved with access to digital services.

Read More: Banking App Dave Opts to Become a Publicly Traded Company via Merger

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