The global financial ecosystem is undergoing a significant shift as digital payments continue to gain momentum, reshaping how individuals and businesses transact worldwide. This, according to multiple reports covering the latest developments in the Fintech and payments sector.
Recent reports underscore this transformative trend, projecting that digital payment transactions will exceed $335 trillion by 2030, driven by technological innovation, evolving consumer behavior preferences, and regional economic dynamics.
From Southeast Asia’s e-commerce sector to Europe’s steady transition away from cash, the rise of digital payments reflects a broader move toward a cashless future.
According to a recent update, the digital payments market is set to grow at a compound annual growth rate (CAGR) of 9.5% between 2025 and 2030, reaching a staggering $335 trillion in transaction value.
This forecast, derived from FIS’ 2025 Global Payments Report, highlights the increasing dominance of digital wallets, which accounted for nearly half of global e-commerce spending in 2024 and are projected to represent 36% of point-of-sale (POS) transactions by 2030.
In the United States alone, digital wallet usage at POS is expected to rise from 32% in 2024 to 43% by 2030, with leading platforms like Apple Pay, Google Pay, and PayPal driving this shift.
Globally, the Asia-Pacific region reportedly leads the charge, with digital wallets comprising 68% of e-commerce transaction value in 2024, fueled by widespread adoption in countries like China and India.
This surge is attributed to convenience, speed, as well as the proliferation of smartphones, which have made digital payments accessible to billions.
In Southeast Asia, digital payments are said to be a cornerstone of the region’s e-commerce boom, as detailed in a new report.
The region’s e-commerce market is projected to reach $295 billion by 2025, doubling to $600 billion by 2030, with digital payments facilitating cross-border commerce and financial inclusion.
Platforms like Shopee and Lazada, alongside mobile payment solutions such as GrabPay and GCash, are enabling seamless transactions across borders, connecting merchants and consumers in a region where traditional banking penetration remains limited.
The report notes that 70% of Southeast Asian consumers now prefer digital payments for online purchases, a trend accelerated by government initiatives promoting cashless economies and the integration of AI-driven fraud prevention tools.
Cross-border e-commerce, expected to account for 30% of the region’s online sales by 2030, further amplifies the role of digital payments in bridging economic gaps.
Meanwhile, the European Central Bank (ECB) provides insight into Europe’s evolving payment landscape.
Its December 2024 report reveals that while cash remains relevant—used in 52% of POS and person-to-person transactions in 2024—digital payments are steadily encroaching.
Card payments, predominantly contactless, accounted for 36% of POS transactions, up from 31% in 2022, with the average value of contactless transactions rising from €21.30 to €24.70.
The ECB attributes this shift to convenience and the growing acceptance of mobile payment apps, though cash usage persists in smaller transactions and among older demographics.
Notably, online payments in the euro area are overwhelmingly digital, with cards and e-payment solutions like PayPal dominating e-commerce.
Across these regions, the rise of digital payments reflects a global trend toward efficiency, security, and inclusivity. However there are risks and challenges such as the rise in fraudulent activities and the emergence of AI that is being used to exploit vulnerable users.