The global market for merchant payment platforms is seemingly in for a good time even though the risk of payment fraud is expected to rise, according to a new report from Juniper Research.
The research firm estimates that revenues for the industry will globally grow from $106bn in 2019 to $158bn by 2024.
The Chinese market is expected to generate more than half of the revenue by 2024. Juniper Research stated that this predominantly due to the growing usage of social payment services such as WeChat Pay.
However, not everything is tickety-boo. During the next five years, Juniper Research believes that the losses suffered by the industry due to payment fraud will grow by 70%.
Morgane Kimmich, author of the research, commented, “The market will move beyond solely offering payments in the near future by expanding to new services. These value-added services will enable payment platforms to differentiate themselves in a saturated market and build out new business models to allow vendors to generate additional revenue.”
Talking about the Chinese FinTech sector, it is worth noting that it has seen over $60.8bn being invested in it across 815 deals since 2014, according to FinTech Global’s data. In total, the investment has grown by a compound annual rate of 126.4% between 2014 and 2018.
Last year, investments into the Chinese FinTech sector broke another record by attracting $31,5bn in investment, up from $8.1bn in 2017.
The spike was predominantly due to Ant Financial, the payment affiliate of the Alibaba Group, scoring a $14bn Series C round at the end of the second quarter.
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