The digital payment services is booming, with a market size exceeding $81 billion in 2022. This surge is fueled by two key trends: the explosion of online shopping and the ubiquitous presence of smartphones.
Gen Z Leads the Charge: Young consumers, particularly Gen Z, are driving the digital payment revolution. They favor online banking and crave personalized, flexible, and relevant experiences. This demand for seamless user interfaces is pushing payment service providers to innovate and deliver experiences that empower businesses.
Convenience Meets Security: The rise of online shopping has propelled the need for secure and convenient payment options. Smartphones have become the ultimate payment tool, facilitating both online and in-store transactions. Contactless payments, with their hygienic and swift nature, are gaining traction as well. As security features in digital payment services improve, consumer confidence in using them grows.
Order your copy of the Digital Payment Services Procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Building a Fortress: Technology at the Forefront
Companies are constantly on the lookout for cutting-edge technologies and strategic partnerships to combat fraud and fortify security. Here are a couple of examples:
Mastercard and Vesta Join Forces: In November 2022, Mastercard partnered with Vesta to provide a robust fraud management platform for merchants in Latin America and the Caribbean. This alliance aimed to enhance the customer experience in the booming e-commerce space by tackling real-time fraud threats.
LexisNexis Risk Solutions Acquires BehavioSec: In March 2022, LexisNexis Risk Solutions acquired BehavioSec, a Swedish company specializing in behavioral biometrics technology. BehavioSec’s solution utilizes behavior analysis for continuous authentication, strengthening identity verification and deterring fraud. This acquisition bolstered LexisNexis’ digital identity protection offerings.
The Invisible Shield: Safeguarding Your Information
Cryptography is the secret weapon safeguarding digital payments. It scrambles information into an unreadable format, protecting sensitive data like passwords and credit card details. Additionally, the Payment Card Industry Data Security Standard (PCI DSS) enforces a set of security protocols specifically designed to shield sensitive payment information. Secure Sockets Layer (SSL) encrypts data transmitted over the internet, adding another layer of protection. Two-factor authentication (2FA) further bolsters security by requiring users to provide two forms of identification during login.
Digital Payment Services Sourcing Intelligence Highlights
- The number of both large and small companies operating in different areas has caused the digital payment services category to become highly fragmented on a worldwide scale. Players compete aggressively with one another to grow their customer base and offer superior customer service.
- Technology cost, transaction cost, and labor account for the largest cost component of the digital payment services business.
- Most providers offer services such as fraud prevention, account management, customer support, and risk management.
Key Suppliers
- Visa
- Mastercard
- PayPal
- Alipay
- China UnionPay
- Amazon Pay
- Stripe
- PayU
- Adyen
- Paytm
