Healthcare Digital Payment Market Size, Share & Trends Analysis Report By Solution (Payment Gateway, Payment Processing), By Mode of Payment (Bank Cards, Digital Wallets), By Deployment, By Enterprise Size, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Healthcare Digital Payment Market Trends

The global healthcare digital payment market size was estimated at USD 11.75 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 21.5% from 2023 to 2030. The growth of the market can be attributed to the increasing prevalence of digital payment methods offering unmatched convenience and efficiency for both healthcare providers and patients. Patients can easily settle bills, insurance premiums, and prescription costs online, reducing the need for time-consuming manual paperwork and in-person transactions. This convenience aligns with the broader societal shift towards digital transactions, fueling the growth of the market. Furthermore, the widespread adoption of smartphones and secure mobile banking applications has significantly contributed to the growth of digital payments in healthcare.

According to the Global System Operators and Manufacturers Association (GSMA), worldwide smartphone adoption is expected to go up from 76% in 2022 to 92% by 2030. Thus, patients can manage their healthcare expenses and make payments through their smartphones, reflecting a growing comfort with digital financial transactions. This trend aligns with the broader global shift towards a digital-first economy.

Technological advancements in the areas of digital banking and free online fund transfer have led to the rise in the adoption of online payments in the healthcare sector. Furthermore, the customer's demand for digital payments for healthcare products is another major factor driving the growth of the market over the forecast period. For instance, in July 2022, according to the PYMNTS report, only around 4.2% and 8.3% of the consumers preferred payment methods for paying their healthcare bills, which were cash and check, respectively. At the same time, 37.6% preferred credit cards, and 32.1% of consumers preferred debit card payment methods. In addition, 15.5% of bills from total bills that get paid using mobile wallets were for availing healthcare services.

Furthermore, regulatory changes and government initiatives have played a pivotal role in encouraging the healthcare sector's adoption of digital technologies, including digital payment solutions. Initiatives such as the HITECH Act in the U.S. incentivize healthcare providers to integrate electronic health records (EHRs) and electronic billing systems into their operations, further propelling the growth of digital payments in the market. In addition, the increasing investments from the healthcare sector into the digital payment industry also bode well for the growth of the market. Similarly, the partnerships and collaborations between healthcare and digital payments market players are anticipated to drive the growth of the market.

While the healthcare digital payment industry is poised for growth over the forecast period, it does face certain challenges. Some of these concerns are related to data security and patient privacy in the healthcare sector. With sensitive medical and financial information at stake, ensuring robust cybersecurity measures and compliance with data protection regulations such as the Health Insurance Portability and Accountability Act (HIPAA) is essential. The risk of data breaches and cyberattacks can deter the adoption of digital payment solutions in healthcare. Furthermore, the complexity of healthcare billing and payment processes is another major factor restraining the growth of the market over the forecast period.

End-user Insights

The hospitals segment dominated the market in 2022 with a share of more than 27.0% of the global revenue. The growth of the segment can be attributed to the increasing adoption of healthcare digital payment solutions by hospitals. The growth in the adoption of these solutions can be attributed to increased efficiency and cost-effectiveness in the payment process, streamlining payment processes, reducing administrative overhead, and lowering operational costs. Furthermore, the complexity of hospital revenue cycles, often involving multiple payers and billing codes, is significantly eased by digital payment solutions, automating revenue cycle management for more precise billing and improved revenue capture. Hence, as the healthcare landscape evolves, hospitals continue to embrace digital payment solutions, adapting to changing needs and providing efficient, patient-centric financial processes.

The telemedicine and remote health services segment is anticipated to register the fastest CAGR of 25.4% over the forecast period. This trend reflects the increasing popularity and necessity of telehealth and remote care delivery, accelerated by factors such as the COVID-19 pandemic. As more patients seek healthcare services virtually, the demand for convenient and secure digital payment solutions is on the rise. These solutions enable patients to make payments for telehealth consultations and remote services easily, enhancing the overall patient experience.

Regional Insights

North America dominated the market in 2022 with a share of over 39.0% of the global revenue. The growth of this regional market can be attributed to the region's advanced healthcare infrastructure, characterized by a multitude of healthcare providers and extensive insurance networks, which necessitates efficient payment solutions to manage the intricacies of revenue cycles. Furthermore, the well-established regulatory environment, exemplified by HIPAA, underscores the importance of data security and patient privacy, aligning perfectly with the secure and compliant nature of digital payment solutions. The surge in telehealth services, accelerated by the COVID-19 pandemic, has further driven the demand for these solutions, facilitating payments for virtual consultations and remote health services across the region.

Asia Pacific is anticipated to grow at the fastest CAGR of 23.1% over the forecast period. With rapid economic growth and an expanding middle-class population, the region is witnessing increased healthcare spending, making the adoption of efficient digital payment solutions imperative. Moreover, governments and healthcare providers are actively working to broaden healthcare access, even in remote and underserved areas. Furthermore, the Asia Pacific's booming mobile and internet penetration, along with the widespread use of smartphones, makes healthcare services more accessible and digital payments more convenient.

Solution Insights

The payment processing segment held the maximum market share in 2022 of more than 22.0% of the global revenue. The growth of the payment processing segment can be attributed to increasing launches of payment processing solutions from digital payment providers for the healthcare spaces. For instance, in May 2023, Cardinal Health, a healthcare company, announced the launch of modern payment solutions powered by a financial service platform named Square. As a result of this launch, the solution offered help to the customers of independent pharmacies to integrate flexible payment options for online and in-store purchases, seamlessly manage business operations, and reduce payment processing costs.

The payment gateway segment is anticipated to register the fastest CAGR of 23.2% over the forecast period. The payment gateway segment has experienced substantial growth due to its ability to address critical healthcare industry needs. In addition, it offers robust security and compliance features, ensuring the protection of sensitive patient data while maintaining regulatory standards such as HIPAA. It streamlines transactions, reduces administrative workloads, and minimizes billing errors, all of which are crucial for healthcare providers.

Mode of Payment Insights

The bank cards segment dominated the market in 2022 with a share of above 33.0% of the global revenue. The bank card segment growth can be attributed to the increasing use of credit and debit cards for making digital payments. This increase in the use of credit and debit cards can be attributed to the offers, cashback, and various loyalty benefits offered to the customers from the card providers. Furthermore, bank cards enable patients to easily settle medical bills, insurance premiums, and prescription costs using their bank cards, aligning healthcare transactions with their usual financial practices.

The digital wallet segment is anticipated to register the fastest CAGR of 23.8% over the forecast period. The growth of the segment can be attributed to the rising use of digital wallets by customers. For instance, in August 2023, according to a survey by Forbes Advisor, almost 53% of surveyed participants used digital wallets for making payments. Thus, such a trend is expected to drive the growth in the usage of digital wallet payment methods across the healthcare industry. Furthermore, digital wallets also offer users a convenient and accessible way to settle medical bills, insurance premiums, and healthcare expenses with just a few taps on their mobile devices, eliminating the need for physical cash or card transactions.

Deployment Insights

The cloud segment held the maximum market share in 2022 of more than 52.0% of the global revenue. The cloud technology segment offers healthcare organizations secure, scalable, and cost-efficient means of managing digital payments. The scalability of cloud services ensures that healthcare institutions can adapt to increasing payment volumes and evolving demands. Moreover, the cloud's accessibility and mobility features align perfectly with the demands of modern healthcare, enabling remote payment processing and financial data access for telehealth and mobile healthcare services.

The on-premise segment is anticipated to register a significant growth over the forecast period. Some healthcare organizations, particularly larger institutions, value the enhanced data control and compliance that is offered by on-premise solutions. In addition, healthcare settings subject to strict regulatory requirements found on-premise systems to be a means of ensuring compliance. Security concerns surrounding the use of cloud-based services for sensitive financial and patient data also contributed to the persistence of on-premise solutions. However, with the growth in cloud adoption, the on-premise segment growth will diminish in the future.

Enterprise Size Insights

The large enterprises segment dominated the market in 2022 with a share of more than 58.0% of the global revenue. A healthcare company with an employee strength of a minimum of 500 people is termed a large enterprise. Large healthcare enterprises, such as hospital networks and healthcare systems, are benefiting from the scalability and efficiency offered by digital payment solutions. These platforms streamline complex revenue cycles, integrate seamlessly with existing systems like electronic health records and practice management software, and enhance data security and compliance, which is particularly crucial in an industry with stringent regulations. Furthermore, digital payment solutions improve the patient experience by providing user-friendly, convenient payment options and supporting telehealth integration, aligning with evolving patient preferences.

The small & medium enterprises segment is anticipated to register the fastest CAGR of 22.7% over the forecast period. These organizations are non-subsidiary, independent firms with an employee strength of under 500 people. Small & Medium Enterprises (SMEs) in the healthcare sector are adopting digital payment solutions that are both affordable and quick to implement, allowing them to streamline payment processes and reduce operational costs while working with limited resources. These solutions easily integrate with common healthcare systems, enhancing overall efficiency, and their robust data security features ensure compliance with industry regulations. Furthermore, SMEs are embracing digital payment solutions to remain agile and provide convenient, secure, and compliant payment options, contributing to the continued growth of this segment in the market.

Key Companies & Market Share Insights

The healthcare digital payment industry can be considered a highly fragmented market, thereby driving the competition in the market. Several key players in the market, such as ACI Worldwide, Bank of America Corporation, and Elavon Inc., among others, are involved in various strategic initiatives, including partnerships, collaborations, acquisitions, and fundraising. These initiatives help market players gain a competitive advantage over their rivals. For instance, in August 2020, JPMorgan Chase & Co. announced the acquisition of InstaMed, a healthcare payment solution provider. This acquisition was aimed at offering a better payment experience to payers, providers, and consumers. It also helped InstaMed to scale its payment solution, leveraging the strength of JPMorgan Chase and its vast payment capabilities.

Similarly, in July 2023, Zelis, a technology company, entered into a partnership with a financial technology company named Rectangle Health, which offers software solutions to healthcare organizations. This partnership was aimed at launching first-of-its-kind, straight-through processing of dental and healthcare digital payments for healthcare providers.

Healthcare Digital Payment Market Report Scope

Global Healthcare Digital Payment Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the healthcare digital payment market report based on solution, mode of payment, deployment, enterprise size, end-user, and region.

• Solution Outlook (Revenue, USD Billion, 2017 - 2030)

  • Application Program Interface

  • Payment Gateway

  • Payment Processing

  • Payment Security & Fraud Management

  • Transaction Risk Management

  • Others

• Mode of Payment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Bank Cards

  • Digital Wallets

  • Net Banking

  • Others

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Large Enterprises

  • Small & Medium Enterprises

• End-user Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hospitals

  • Medical Clinics

  • Pharmacies

  • Health Insurance Companies

  • Telemedicine and Remote Health Services

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • The Kingdom Of Saudi Arabia (KSA)

    • UAE

    • South Africa