P2P Payment Market Size

P2P Payment Market Size

P2P Payment Market size was valued at USD 3.21 trillion in 2023 and is anticipated to register a CAGR of over 15% between 2024 and 2032. The widespread adoption of smartphones has made P2P payment apps easily accessible to billions of people globally. According to WhatstheBigData.com, as of 2024, there were 6.84 billion smartphones globally. This widespread access to smartphones provides fertile ground for the expansion of P2P payment services.

Moreover, P2P platforms are increasingly integrating with other digital services, such as messaging apps and social media platforms, further enhancing their accessibility and convenience for users. For instance, in 2023, Zelle enabled 2.9 billion transactions totaling USD 806 billion in transaction volume across 120 billion consumers and small-business accounts, highlighting the growing demand for convenient P2P payment solutions.

Governments around the world are increasingly promoting digital payments as part of their financial inclusion and cashless economy initiatives. This support has been crucial in driving the adoption of P2P payment systems. In India, the government's push for digital payments is evident through the success of UPI.
 

In May 2024, UPI facilitated 14.03 billion transactions. This high volume demonstrates the widespread adoption and trust in the system by both consumers and businesses. These transactions amounted to USD 20,449.37 billion, indicating the substantial economic activity being conducted through digital payments. This indicates strong government backing and a well-established infrastructure supporting P2P payments.
 

The P2P payment market faces significant security challenges due to the inherent risks associated with digital transactions. Despite advancements in encryption and authentication technologies, P2P payment platforms remain targets for cybercriminals, who exploit vulnerabilities to steal sensitive financial information. Common threats include phishing attacks and malware that intercept transaction data, which can erode user confidence and deter potential users from adopting P2P payment systems.
 

Fraudulent activities, such as unauthorized transactions, identity theft, and social engineering scams, can result in significant financial losses. Despite robust security measures, the dynamic nature of cyber threats requires platforms to continually update and enhance their defenses. High-profile security breaches can negatively impact the reputation of P2P payment providers, potentially reducing user adoption and slowing market growth.