Dublin, March 19, 2024 (GLOBE NEWSWIRE) -- The "Lending And Payments Global Market Report 2024" has been added to ResearchAndMarkets.com's offering.
The lending and payments market size has grown strongly in recent years, growing from $11,495.08 billion in 2023 to $12,410.68 billion in 2024 at a compound annual growth rate (CAGR) of 8.0%. The growth observed during the historical period was driven by factors such as economic expansion, the proliferation of banking and financial institutions, increasing consumer demand, and regulatory conditions.
The lending and payments market size is expected to see further growth in the next few years, reaching $16,828.1 billion in 2028 at a compound annual growth rate (CAGR) of 7.9%. During the forecast period, growth is anticipated to stem from digital transformation, the influence of fintech innovation, financial inclusion initiatives, advancements in blockchain and cryptocurrency, and the integration of data analytics and artificial intelligence. Notable trends during this period include the rise of peer-to-peer lending, the prevalence of contactless and mobile payments, the evolution of open banking, the development of embedded finance solutions, and the emphasis on sustainable and ethical financial practices.
Artificial Intelligence (AI) is increasingly becoming a focal point within the payments sector due to its multifaceted applications, empowering businesses to leverage data synthesis for the enhancement of customer experiences. AI encompasses the development of computer systems with human-like intelligence capabilities. Payment companies are capitalizing on AI's potential to elevate their operational efficiency by streamlining processes, reducing processing times, generating error-free insights, and boosting automation. A growing number of both banking and non-banking institutions are deploying AI applications to scrutinize payment transactions, spanning from the initial payment message to the payment gateway. As an illustration, payment firms are adopting AI-enabled chatbots that possess the capacity to comprehend natural language and deliver real-time responses to customer inquiries. Furthermore, AI-driven machine learning plays a pivotal role in fortifying fraud detection mechanisms and curbing erroneous transactions. As substantiated by the Economist Intelligence Unit's latest adoption study, 54% of financial services organizations have embraced AI to enhance payment processes and foster robust customer relationships.
The primary categories within the lending and payments sector include lending, cards, and payments. Within cards and payments, the process involves various card payment methods. These services can be accessed through both offline and online channels, catering to business-to-business (B2B) and business-to-consumer (B2C) clientele.
The lending and payments research report is one of a series of new reports that provides lending and payments statistics, including lending and payments industry global market size, regional shares, competitors with lending and payments share, detailed lending and payments segments, market trends and opportunities, and any further data you may need to thrive in the lending and payments industry. This lending and payments research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The surge in e-commerce activity is set to drive the expansion of the lending and payments market in the future. E-commerce, characterized by online transactions of goods and services, particularly through digital networks like the Internet, has significantly impacted the lending and payments landscape. This mode of commerce has contributed to the enhancement of lending and payment services, offering businesses expedited access to capital, improved sales figures, and streamlined checkout processes. For instance, as reported by the International Trade Administration in 2021, global retail consumer goods e-commerce sales surged from $4,891 billion in 2021 to $5,424 billion in 2022. As a result, the upsurge in e-commerce operations is steering the growth of the lending and payments sector.
Alternative lending is experiencing increased popularity by offering loans to individuals and businesses that face challenges accessing loans through conventional banking channels. The rise of alternative lending is predominantly due to traditional banks perceiving small business commercial loans as unprofitable. By leveraging advanced technologies like big data, alternative lenders gain data-driven insights that expedite the lending process. This approach enables these lenders to generate profits from loans typically considered unprofitable by traditional lending institutions. Notable examples of alternative lenders in this space include Lending Club and OnDeck.
Major players within the lending and payments market are integrating innovative solutions, such as public technology platforms, to enhance their market position and profitability. Public technology platforms encompass digital frameworks or online services accessible and utilized by the general populace. For example, in August 2023, the Reserve Bank of India, a central bank in India, introduced a public tech platform designed to streamline credit processes. This platform aims to ensure seamless access to crucial digital data for lenders, fostering more efficient financial transactions. By reducing costs, expediting distribution, and improving scalability, the platform can notably enhance the loan procedure. Moreover, it enables the integration of vital services like Aadhaar e-KYC and land records offered by select state governments.
This report focuses on lending and payments market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
- Markets Covered:
- By Type: Lending, Cards And Payments
- By Lending Channel: Offline, Online
- By End User: B2B, B2C
- Subsegments Covered: Corporate Lending, Household Lending, Government Lending, Cards, Payments
- Countries: Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
- Data segmentations: Country and regional historic and forecast data, market share of competitors, market segments.
Companies Profiled:
- China Construction Bank
- Agricultural Bank Of China
- JPMorgan Chase & Co.
- Bank of China
- Industrial and Commercial Bank of China
- Bank of America Corporation
- Banco Santander
- Citi Group
- Wells Fargo & Company
- State Bank of India
- Klarna Inc.
- Funding Circle
- Advanced Financial Services Private Limited
- Visa Payments Limited
- Mastercard Inc.
- Tencent Holdings Limited
- Ant Financial Service Group Co. Ltd.
- PayPal Payments Pvt Ltd.
- Square Capital LLC.
- Coinbase Global Inc.
- Social Finance Inc.
- Coinbase Global Inc.
- Robinhood Markets Inc.
- Venmo
- Affirm Inc.
- Afterpay Australia Pty Ltd.
- LendingClub Bank.
- Camden Town Technologies Pvt Ltd.
- Kabbage Inc.
- On Deck Capital Inc.
- Avant LLC.
- Upstart Network Inc.
- Lendio
For more information about this report visit https://www.researchandmarkets.com/r/i0yn80
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