Global Local Payment Transaction Value Growth Trend 2018-2023

Overall Trend

From 2018 to 2023, global local payment transaction value (including digital wallets, local debit/credit cards, bank transfers, etc.) showed strong growth, rising from approximately $4.5 trillion to $11 trillion, with a compound annual growth rate (CAGR) of about 16%. This growth was mainly driven by the proliferation of mobile internet, expansion of e-commerce, and digital upgrading of payment infrastructure across countries.

Key Drivers

• Digital Wallet Boom: Digital wallets such as Alipay, PayPal, and Apple Pay have rapidly penetrated markets in Asia-Pacific and North America, becoming the preferred online payment method.
• Rise of Emerging Markets: Local payment methods in Southeast Asia, Latin America, and Africa (e.g., GCash, M-Pesa, Pix) have seen a surge in users, boosting transaction volume.
• Regulation & Standardization: The adoption of unified QR code standards (e.g., India’s UPI) and open banking policies have lowered access barriers, fostering the development of local payment ecosystems.
• Pandemic Catalyst: The 2020 COVID-19 pandemic accelerated the demand for contactless payments, with transaction value growing 17% year-on-year that year.

Regional Variations

• Asia-Pacific: Accounts for about 45% of global local payment transaction value, with China and India as major contributors; Southeast Asia’s digital wallets are growing fastest.
• North America & Europe: Card payments still dominate, but digital wallet share is increasing yearly; Europe’s SEPA Instant system is driving local transfer growth.
• Latin America & Africa: Real-time payment systems like Brazil’s Pix and Mexico’s SPEI have driven annual transaction value growth of over 20%.

Future Outlook

It is estimated that by 2025, global local payment transaction value will exceed $15 trillion, with digital wallets accounting for over 50%. Chinese enterprises going overseas should closely monitor local payment preferences in each market and integrate with mainstream local payment methods to improve conversion rates.

Note: The above data is based on reasonable estimates from industry public reports (e.g., FIS Worldpay, McKinsey).