P2P Payments Surge: APAC Leads Global Growth Despite Market Size Discrepancies

NEW YORK, NY – November 11, 2025

Market Poised for Double-Digit Growth

The peer-to-peer (P2P) payment market is experiencing robust growth, fueled by increasing smartphone penetration, consumer preference for digital transactions, and innovative technological advancements. A new report from Allied Market Research projects a significant expansion, forecasting a market value of $14.51 billion by 2034, representing a compound annual growth rate (CAGR) of 17.3% from a $2.85 billion valuation in 2024. However, analysis reveals substantial discrepancies in reported market size figures across different research firms, warranting a closer examination of market measurement methodologies.

While Allied Market Research’s projections point to a multi-billion dollar market, other leading analysts estimate the current market size in the trillions of dollars. Precedence Research, for example, pegs the 2024 market at $3.07 trillion, with similar firms offering figures ranging into the trillions. This variation highlights a lack of standardized definitions within the P2P payment market and the inclusion of different services within the scope of these reports.

“The definition of ‘P2P payment’ is becoming increasingly blurry,” explains one financial analyst. “Some reports focus solely on direct person-to-person transfers, while others encompass a broader range of digital transactions facilitated through mobile apps and online platforms.”

Asia-Pacific Dominates the Landscape

The Asia-Pacific (APAC) region continues to lead the global P2P payment market, accounting for a substantial portion of total transaction volume and revenue. Several factors contribute to this dominance, including high rates of smartphone adoption, a growing preference for digital payments, and supportive government policies promoting cashless economies. Countries like China and India are at the forefront of this trend, with innovative payment systems like UPI in India revolutionizing the way people transact.

“APAC is a unique market with a different set of dynamics compared to North America or Europe,” notes a technology consultant specializing in fintech. “The region has a large unbanked population, and mobile payments offer a convenient and accessible alternative to traditional banking services.”

The growth of e-commerce in APAC is also driving the demand for P2P payments, with consumers increasingly opting for digital transactions for online purchases. Alipay and WeChat Pay remain dominant forces in the region, embedding payment capabilities within social media and commerce platforms for seamless transactions.

IoT Integration: The Next Frontier

Beyond convenience and accessibility, the integration of P2P payments with the Internet of Things (IoT) represents a significant growth opportunity. As the number of connected devices continues to rise, P2P payments are poised to become seamlessly integrated into everyday life, enabling autonomous transactions and new commerce experiences.

Imagine a connected car automatically paying for fuel or tolls, or a smart refrigerator reordering groceries when supplies run low. These scenarios are becoming increasingly feasible as P2P payments are integrated with IoT devices.

However, this integration also presents challenges, including security concerns and the need for robust data privacy measures. “Trust is paramount,” states a cybersecurity expert. “Consumers need to be confident that their data is secure and that P2P payments are protected from fraud.”

One emerging trend is the use of biometrics, such as fingerprint or facial recognition, to authenticate P2P payments on IoT devices. This adds an extra layer of security and helps prevent unauthorized transactions. Furthermore, secure communication protocols and encryption technologies are essential to protect sensitive data during transmission.

The proliferation of 5G connectivity is expected to accelerate the adoption of IoT-enabled P2P payments, providing faster and more reliable connections for seamless transactions. As the number of connected devices continues to grow, P2P payments are poised to become an integral part of the connected ecosystem.