The total transaction value of digital payments in the UK was estimated to be around $162 billion in 2018. The largest segment of the market, digital or e-commerce payment accounted almost 93% of the total market.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Trends
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Distribution Chain Analysis
- Competitive landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
- Payments are made using different payment instruments. Lately, digital payment is becoming the catchall phrase where payments is made via digital means unlike regular payments where physical instruments such as cash, cheques or drafts are present. The instruments for the digital payment varies from country to country. Some countries have moved to advanced payment systems such as through human embedded chips, while others are exploring contactless technology and biometrics.
- Within the digital payment spectrum, the instruments can also be divided into two major categories that include:
- Push digital instruments: This includes mechanisms such as RTGS, money transferred through mobile which are received in real time and other instruments such as wire transfers that may take some time to be received on the recipient end.
- Pull digital instruments: These include card payments such as debit/credit card payments at the merchant stores which are again transacted in real time and other instruments such as direct debits which are not transferred in real-time.
Some of the technical terms used in digital payments are as follows:
- Authentication process: The method used to verify the origin of a message or to verify the identity of a participant connected to a system and confirm that message has not been modified or replaced during transit.
- Interoperability: A payment system of one company that may be used in other countries or is compatible with other systems of companies within the same country. To make systems interoperable, there needs to be technical compatibility between those systems.
- Digital Payment: Payment initiated in digital format
- E-Payment: Payment which is enabled via internet initiated via mobile application or online websites.
- Payment Grid: Types of payment models such as G2G (Government to Government), B2C (Business to Customer), B2B (Business to Business), P2P (Peer to Peer) among others.
- Payment Instrument: Any instrument enabling user to transfer funds (CPSS). For example, credit/debit cards, direct debit, e-cheques, online & mobile banking, mobile wallet, contactless cards etc.
- Payment (transaction) device: A device which uses information from payment instruments to complete a transaction. For example: ATM, POS machine, PC, Mobile Phone etc.