28 Dec 2022
Digital payments are those made through digital or online methods without the exchange of actual money. Such a payment, also known as an electronic payment (e-payment), occurs when the payer and the payee utilise a digital device such as a smartphone, computer, credit, debit, or prepaid card to move value from one payment account to another. Making an online money transfer to the family and loved ones back home has become one of the most critical needs for many of the 281 million global expatriates.
With the introduction of digital currencies, several nations are attempting to eliminate cash. One key benefit is that governments can better track their finances by going fully digital. Developed as well as developing countries have allowed multiple online payment apps to operate.
In 2020 alone, over 70 billion digital transactions occurred following the pandemic. Online purchasing is currently popular among many people. It explains why there was an increase in online shopping in every nation. At the end of 2022, it is anticipated that the overall transaction value for digital payments will reach $8.49 trillion, which is undoubtedly massive.
So let's find out the nations that have used the most digital payments. These nations have made significant advancements in the field of electronic payments. The average person may now transfer money online thanks to these digital payments, which are available 24/7.
The country leading the global digital economy, India, will have processed the most digital payments in 2022, with an estimated 70 billion. According to the data collection portal Statista, this is a substantial increase from a similar amount of 44 billion in 2021. India has also been recording 280 million digital transactions every day on average.
Digital payments are most widely used in India. India has successfully created payment systems that the average person can utilise. Numerous popular apps for digital payments are available in India. In India, digital payment was first introduced by businesses like Paytm and Google Pay. They have opened up digital payment to the average person. UPI was the primary game-changer. It was the cause of a large number of digital transactions. Any small business may now accept payments using QR codes thanks to Paytm. Because of this, anyone could electronically pay anyone. After the pandemic, online buying significantly increased, leading to digital contactless payments' development. With these advancements, several Indian expatriates prefer to make a digital money transfer to their loved ones from overseas whenever needed.
An extensive range of online payment apps, including Alipay, Wechat Pay, ApplePay, Tenpay, and others, are available in China. The two most frequently utilised services for digital transactions are AliPay and WeChat Pay. Many businesses conduct all of their business digitally. The companies that use AliPay conduct business online as well. In China, around 900 million people used digital payments as of December 2021. In digital payments, the total transaction value is anticipated to reach $3,225 billion at the end of 2022.
Another nation that has heavily digitised banking and peer-to-peer exchanges is South Korea. In South Korea, many transactions are made through apps like Amex and Kakao Pay. There are more apps as well as Toss Pay, Payco, T-money, Cashbee, and Visa payment. Many companies went online and began collecting payments after the outbreak. As a result, South Korea saw a surge in online payments. In digital payments, the total transaction value is anticipated to reach US$ 214 billion at the end of 2022. By 2024, digital payments in South Korea are expected to total $500 billion.
Digital transactions are common in the UK as well. In the United Kingdom, there are various options for digital wallets. One of the top businesses offering all types of banking transactions is PayPal. Since the pandemic, there has been a massive increase in online payments in e-commerce. Other fintech businesses are also entering this market to offer solutions, such as ACE Union, which is a relevantly new service but comes with amazing features.
The UK is working to create a reliable online payment system, and more people are embracing digital technologies. In digital payments, the total transaction value is anticipated to reach US$ 436 billion in 2022. People in the UK prefer to send money online over cash payments.
Nigeria is among those nations that have attempted to introduce electronic payment systems on its soil. Numerous apps exist, including Tingg, Paga, and Mobile Money. The prevalence of digital payments is extreme following the pandemic. Even while there are other issues, including not up to the mark internet facility, many business owners are stepping up to offer answers. In 2020, the volume of real-time payments expanded significantly. In 2020, the digital payment volume was 1.9 billion. By 2025, it's anticipated to reach $7.7 billion. In digital payments, the total transaction value is expected to reach US$ 13 billion at the end of 2022.
Despite having incredibly modern technology, a significant portion of transactions in Japan is still made in cash. According to experts, the situation will alter as the younger generation begins conducting business online. Japan likewise experienced a substantial increase in digital transactions following the pandemic. 5.74 billion digital online transactions were reported in 2021. In digital payments, the total transaction value is anticipated to reach US$ 364 billion in 2022.
The world's 7th largest online transactions occur in the United States of America. In the USA, market leaders include PayPal and Google Pay. They have simplified banking transactions and transformed the industry. The number of online purchases increased significantly in the USA following the pandemic. By the end of 2022, it is anticipated that the total transaction value for digital payments will be US$1801 billion.
Another nation that is making significant progress in online payments is Thailand. They have developed a system for accepting payments called rapid pay. Thailand had approximately 7 million transactions before the epidemic; today, there are 14.5 million nationwide. Other startups are also emerging and developing methods to increase the viability of digital payments. In digital payments, the total transaction value is anticipated to reach US$ 32 billion in 2022.
To sum up things, the payment sector innovates continually, moving towards 2023 to make digital payments more accessible and faster for users. Businesses keep on encouraging user stickiness and improving customer experience by providing various options and making it simple and secure for them to pay in 2023.
Even startups are encouraging users for digital payment solutions for quick processing. While you can rely on the market leaders in terms of online money transfer, you should definitely try out emerging Fintechs such as ACE Union if you live in the UK. They offer some of the best features, such as the ACE Card and offer innovative payment solutions. Besides, millions of expatriates worldwide trust ACE Money Transfer whenever they need to make an instant and fast global money transfer for their loved ones.
