Over the past five years, more than 1,6-billion people worldwide have embraced digital payments, pushing the total user count in this market to a whopping 4,44-billion, or more than half the world`s population.

This massive user base has helped the total transaction value in the digital payments segment to nearly triple in this period, but the market is set to reach a new milestone next year.

According to data presented by AltIndex.com, digital payments are set to become a $10-trillion industry in 2024.

While some might have thought that consumers would return to cash once the COVID-19 pandemic ended, the digital payments industry continues thriving, reaching more users than ever. The market has seen many innovations over the past years, including mobile wallets, P2P mobile payments, and real-time payments.

These simple-to-use, cashless payment methods have drawn millions of users and pushed the total transaction value in the market to new record highs.

According to a Statista survey, the global digital payments industry hit nearly $9.5trn transaction value in 2023, 13% more than a year ago. The positive trend will continue next year, with the transaction value rising by another 12% and reaching $10,65-trillion. By 2027, this figure is projected to touch nearly $15-trillion.

Over 60% of the total transaction value comes from digital commerce, the market`s largest segment. The Statista data show digital commerce generated transaction value of more than $6-trillion in 2023, 12% more than last year. Over the next 12 months, this figure will jump by 10% and hit $6,68-trillion.

Although much smaller in transaction value, mobile POS payments will continue growing faster. Statistics show mobile POS payments hit $3,3-trillion in transaction value. This figure is expected to grow by 15% YoY and reach $3,82-trillion in 2024. With millions of people embracing mobile wallets as their top payment method, this figure is forecasted to hit over $5,5-trillion by 2027.

The Statista survey also showed that more than 60% of total transaction value in the digital payments industry in 2024 will come from only three markets: China, the US, and the UK. Although China, the world`s largest digital payments market, is expected to generate 36% of total transaction value in 2024, the US and UK markets will see much bigger growth in digital payments.

The Chinese market is projected to grow by 8% year-over-year and hit a transaction value of $3,92-trillion next year. Americans are expected to make $2,36-trillion of digital payments in 2024, or 15% more than this year. The UK market will see even more significant growth, with the transaction value rising by 18% year-over-year to around $510-billion. Japan and Germany follow with 14% and 12% year-over-year growth and $400-billion and $280-billion worth of digital payments in 2024.