The P2P payment market (peer-to-peer) is experiencing unprecedented growth, with its value soaring from $3.21 trillion in 2023 to a projected $13 trillion by 2032, according to a recent report.
This robust trajectory reflects a compound annual growth rate (CAGR) exceeding 15% between 2024 and 2032, fuelled by the widespread adoption of digital wallets and mobile technology.
Digital Wallets Drive P2P Payments
The proliferation of smartphones and high-speed internet is at the heart of this revolution.
By 2023, an estimated 4.3 billion individuals – 54% of the global population – owned smartphones, according to GSMA.
This connectivity empowers users to leverage P2P payment platforms for seamless money transfers, bill-splitting, and contactless purchases, eliminating the need for cash or checks.
Mobile app-based P2P payments lead the market, capturing over 55% of the transaction mode segment in 2023.
Apps offering secure, quick, and user-friendly interfaces are meeting consumer demands for faster and more efficient payment solutions.
As these platforms evolve, they continue to provide innovative features that enhance convenience, fuelling their popularity across diverse demographics.
E-commerce and Contactless Accelerate Growth
The ongoing rise in e-commerce and the growing preference for contactless payment options are key contributors to the market’s expansion.
Consumers are shifting away from traditional payment methods, favouring digital alternatives that align with the fast-paced, tech-driven landscape of modern commerce.
Moreover, the focus on financial inclusion is driving the development of P2P platforms tailored to underserved markets.
These solutions bridge gaps by providing secure and accessible financial tools to individuals and businesses alike, fostering economic participation and growth.
Business Leads Market Expansion
The business segment of the P2P payment market is outpacing personal usage, with a projected CAGR exceeding 15% through 2032.
By the end of the forecast period, the market value of business-related P2P transactions is expected to surpass $2.29 trillion.
Businesses are increasingly adopting these platforms to streamline payments, improve transaction efficiency, and cater to the digital preferences of their customers.
Asia Pacific A Hotbed
The Asia Pacific region emerged as a leader in 2023, accounting for 30% of the global P2P payment market revenue.
Countries such as China, India, South Korea, and Singapore are at the forefront of this expansion, driven by rapid digitalisation, rising smartphone adoption, and robust internet connectivity.
The region’s tech-savvy populations have embraced P2P platforms for their secure and convenient financial transaction capabilities, making APAC a key player in the global market.
As the P2P payment market continues to expand, innovation and consumer demand will remain pivotal.
The shift toward app-based solutions, increased adoption by businesses, and the ongoing digital transformation in emerging markets ensure a dynamic future for the sector.
With a projected market value of $13 trillion by 2032, P2P payments are reshaping the financial ecosystem, offering both convenience and efficiency to users worldwide.
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