Global Digital Payment in Healthcare Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Digital Payment in Healthcare Market is expected to record a CAGR of 17.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 14,746.2 Million. By 2033, the valuation is anticipated to reach USD 61,521.8 Million.

Digital payment in the healthcare market involves using electronic payment systems to facilitate transactions within the healthcare industry. This includes online payments through various devices such as computers, tablets, and smartphones, which form the e-commerce perspective of digital payments in the healthcare industry.

Additionally, it comprises offline payments blended with digitized processes, including electronic data interchange (EDI) to exchange transaction information electronically. The global digital payment in the healthcare market is driven by a rise in the need for digital solutions in the healthcare industry and the increase in the adoption of advanced technology solutions and systems/smart devices by patients as well as healthcare providers/dentists/pharmacies/laboratories/hospitals all around the globe.

Digital Payment in Healthcare Market – Significant Growth Factors                        

The Digital Payment in Healthcare Market presents significant growth opportunities due to several factors:

• Rising Adoption of Telehealth Services: The growth of telehealth and virtual care needs effective digital payment solutions for remote consultation and services. This is expected to drive the demand for healthcare online & mobile solutions with seamless payment solutions.

• Increasing Consumer Demand for Convenience: Patients demand consumer-friendly payment options such as mobile wallets and contactless payments, requiring healthcare providers to enable digital, simplified, and streamlined billing solutions.

• Technology Improvements: There have been various technological improvements, including the rise in the use of digital forms of payment. In addition to security measures integrated with EHRs, some factors contribute to implementing digital payment systems in healthcare.

• Government Initiatives and Regulations: Enabling government policies and regulations toward promoting electronic payment and digital health records drives healthcare providers to adopt/upgrade digital payments.

• Expansion of Mobile Payment Solutions. There is a significant opportunity to expand mobile payment solutions to accommodate the increasing use of smartphones and mobile apps for healthcare transactions, improving accessibility and convenience for patients.

• Growth in Cross-Border Healthcare Services: With healthcare services becoming more global, there is an opportunity to develop digital payment solutions that support international transactions, currency conversion and cross-border billing for global patients and providers.

Digital Payment in Healthcare Market – Key Developments

Significant shifts have been witnessed in Digital Payment in the Healthcare Market. Key changes are

• In 2023, Zelis partnered with Rectangle Health, the collaboration aims to improve financial processes. It also seeks to streamline payment systems. This is for the healthcare industry. The goal is to use advanced technology for this purpose.

• In 2023, HDFC Bank joined hands with Crunchfish to launch OfflinePay. It’s the pilot for Offline digital payments. This Was under the RBI’s Regulatory Sandbox Program. They aimed to try out new payment solutions for customers and merchants.

• In 2021, JPMorgan Chase & Co. expanded by buying InstaMed. InstaMed offers healthcare payment solutions. This Deal helps improve payment experiences. It benefits payers, providers, And consumers. With this acquisition, InstaMed can scale its solutions.   This is possible by using JPMorgan Chase’s extensive payment capabilities. Also, there are plenty of resources available for use.

Digital Payment in the Healthcare Market – Significant Threats

Digital Payment in the Healthcare industry is anticipated to suffer from several formidable threats that would prevent any expansion or increased profitability of the sector. Some of these threats can be enumerated as:

• Cybersecurity Risks: The wider acceptance and use of digital payment solutions facilitates data breaches and cyber-attacks, compromising numerous patients’ personal and financial information, which may incur substantial financial and reputational losses.

• Regulatory Issues: This also challenges organizations because they must spend time, money and other resources ensuring compliance with strict data protection laws such as the GDPR or HIPAA. GSK has experienced a few legal wrangles and appropriate penalties as a result.

• Implementation and security: It is difficult and costly to graft new technologies like digital payments into existing healthcare IT systems and electronic health records (EHRs). The result may undermine the legitimacy of operations. Operational order is the basic motion animating the hospital has built up over many years, so this cannot be sacrificed lightly.

• Fraud and Financial Bubbles: Digital payment systems help to get away with fraud and fund mismanagement but, along the way, bring new problems that raise costs. There is increasing emphasis, across the board, on deploying sophisticated systems and more comprehensive procedures to protect society from losses and mismanagement caused by actions within its confines –whether through erroneous or fabricated payments.

• Technology Adoption Barriers: Some healthcare givers, tiny ones, may have limited ability to embrace digital payments in their practice because of high implementation costs, inadequate skills, or stubbornness to embrace change, which adversely affects their uptake and the growth of the market.

Category-Wise Insights

By Type of Payment

• Direct Payments: Direct payments are payment transactions where patients pay healthcare providers directly for services or treatments by electronic means, such as credit/debit cards, bank transfers, or digital wallets. The trend is to increase the adoption of mobile and contactless payments due to convenience and speed. Healthcare providers are developing direct payment options in their billing systems and seeking to streamline transactions to improve patients’ experience in line with the increasing demand from consumers for flexible payments.

• Indirect Payments: Indirect payments go through third parties, such as insurance companies or health savings accounts. Patients direct those third parties to manage and process their payments. There is growing interest in how to assist in the automation of claims processing for insurance and the administration of health savings accounts. Automation and integration with electronic health records also support indirect payers in improving the accuracy and speed of payment due to increased healthcare focus on reducing administrative burdens and improving financial management.

By Application

• Program Interface: APIs in digital payments enable integration between healthcare systems and payment platforms to auto-bill, transfer real-time transaction updates, and exchange data. The adoption of APIs develops the usage of APIs in health care as organizations and entities combine digital payment solutions with their established electronic health records (EHRs) and practice management systems. This shall smoothen transactions and improve interoperability between healthcare and payment systems.

• Payment Gateway: A payment gateway handles the process of online payments by receiving transaction details from the website or app of a healthcare provider and forwarding them securely to a payment processor. The increased interest in the use of today refers to high-performance and user-friendly payment gateways, aiming for secure, quick, and reliable payment processing. Innovations bring support for more than one payment method and more substantial security capabilities, protecting patient data and easing the process of transactions.

• Payment Processing: It captures information regarding payment and processing up to the settlement, that is, the transfer of funds to the account of the healthcare provider. There is a growing demand for smoother payment processing solutions, including mobile and contactless payments. These streamlined payment modes with integrated solutions into billing systems will enable automation and quick and easy processes for the healthcare organization in making payments.

• Payment Security & Fraud Management: There is protection against fraud & assured safety of sensitive patient financial information. For this, security enhancement measures such as encryption, tokenization, advanced fraud detection technologies, etc., have been made more substantial. It has strongly emphasized the protection of patients’ sensitive information against fraud in digital payment transactions.

• Transaction Risk Management: Transaction risk management assesses and mitigates risks due to digital payment transactions, fraud, and chargebacks against them. Today, healthcare providers employ the most advanced risk management tools to evaluate transaction risks in real time. It integrates with technologies incorporating AI and machine learning to identify possible threats and avert them to ensure safe and reliable payment processing.

• Others: This category comprises various services and solutions complementing digital payments, such as billing software, patient financing options, and subscription management. Recent interest in additional solutions that improve patients’ convenience and financial management, including the latest provision of automated billing systems and flexible payment plans built with innovative financial wellness tools for the best patient experience and seamless financial interaction with healthcare.

For End Users

• Hospitals: Medical facilities are large healthcare entities offering various medical care and services. These organizations use electronic payment systems to process and handle the payments for inpatient and outpatient services. As one of the most modern healthcare institutions, hospitals now adopt electronic payment solutions to reduce billing hassles while effectively handling patient and revenue cycles. The trend includes linking their payment systems with EHRs and providing online and contactless pay options based on patient needs and for efficiency purposes.

• Medical Clinics: These clinics are smaller and offer specialist or general medical care. They employ electronic payment methods for the collection of patient payments and billing. Most clinics adopt electronic payment systems to make transactions smoother and more manageable. These current trends include mobile payment applications and online appointment booking that make payments easier and faster while promoting patients’ satisfaction and efficient operations.

• Pharmacies: Pharmacies sell pharmaceuticals and other medicinal products. E-payment systems are being used in pharmacies for prescription and over-the-counter medicines. Pharmacies adopt e-payments to help them streamline checkout processes and integrate them with inventory management systems. Contacts and mobile wallets are trending, enabling customers to make payments more efficiently while increasing efficiency for pharmacies.

• Health Insurance Companies: The health insurance companies cover medical services and treatment. They use digital payments to manage premiums, claims, and reclaims. Recently, with digital payment systems, health insurance companies have been gaining efficacy in handling claims and providing service to their customers. Some trends include the integration of health platforms with digital schemes, which ensure smooth premium payments and claims submissions. Artificial intelligence’s application to eliminate fraud and claim management remains a significant trend.

• Telemedicine and Remote Health Services: A channel for telemedicine and remote health services provides consultations and treatment remotely through digital means. They use digital payments to collect service charges and for consultation. This is one of the fastest-evolving fields in which virtual care support is available. The trends in this domain include acquiring secure, user-friendly payment solutions created specifically within telemedicine channels to help online consultation assistance and allowing patients to pay for virtual healthcare services through diversified, user-friendly ways.

• Others: This is any other healthcare provider or service type, including wellness centers and home health care. Other healthcare providers increasingly adopt electronic payment channels for increased speed of transactions and ease of access for the patient. Trends encompass the increased use of mobile and online payment channels for varied services and billing procedures and the interface of payment channels with patient management systems for organizational efficiency.

Report Scope

Digital Payment in Healthcare Market – Regional Analysis

The Digital Payment in Healthcare Market is segmented into North America, Europe, Asia-Pacific, and LAMEA regions. Below is a brief overview of each region:

• North America: North America includes the U.S. and Canada, advanced countries with very advanced healthcare facilities and higher adoption of electronic technologies compared to other regions. North America’s trend is towards fully integrating digital payment solutions with EHRs and telehealth platforms. There is a focus on the adoption of advanced fraud detection systems and several payment options, like mobile wallets and contactless payments, to enhance the convenience of patients and ease administrative procedures.

• Europe: Europe comprises a vast spread of healthcare markets with different adoption levels of digital payments and the regulatory environment. European interest is in deploying digital payment solutions aligned with regulations like GDPR and PSD2. The trend includes secure payment adoption, ensuring data protection against non-representative figures while allowing for cross-border payments with EU member states. Incorporate digital payments into the national health systems and foster innovations such as blockchain to ensure maximum transparency and security.

• Asia-Pacific: Asia-Pacific is about developing economies with varying levels of health systems and digital payment acceptance. In Asia-Pacific, the trend is extending the reach of mobile and digital payment solutions to large populations and emerging markets. Asia-Pacific aims to enhance financial inclusion and access through mobile wallets and digital banking solutions. High growth has also been reported in integrating telemedicine services and health management applications with payment systems for the solution of the unique healthcare needs of the region.

• LAMEA (Latin America, Middle East, and Africa): LAMEA is an emerging market region with various levels of healthcare infrastructure and adoption of digital payment. The trend in LAMEA is to develop affordable and accessible digital payment solutions that can improve financial inclusion and simplify healthcare transactions. Mobile payments and SMS-based solutions are gaining importance in relatively low banking penetration areas. Besides, digital payments are being integrated with local health initiatives, and healthcare billing and claims processing are being improved in underserved areas.

Competitive Landscape – Digital Payment in Healthcare Market

The Digital Payment in Healthcare Market is highly competitive, with many service providers globally. Some of the key players in the market include:

• Square Inc.
• PayPal Holdings Inc.
• Stripe Inc.
• Worldpay Inc.
• Adyen N.V.
• Global Payments Inc.
• Fiserv Inc.
• Mastercard Incorporated
• Visa Inc.
• American Express Company
• Ingenico Group
• First Data Corporation
• Clover Network Inc.
• HealthPay24 LLC
• Nets Group A/S
• Others

These companies operate in the market through various strategies such as innovation, mergers and acquisitions, and partnerships.

New players like H2O.ai and ThoughtSpot have adopted innovations such as advanced machine learning and intuitive AI-driven analytics to enter the AI banking market. They focus on providing sophisticated, user-friendly solutions that address emerging needs.

Dominating key players like IBM, Microsoft, and Google lead the market with extensive resources and cutting-edge technologies. They drive the market with robust AI platforms, comprehensive tools for predictive analytics, and large-scale integrations, enhancing operational efficiency, customer experiences, and security for global banking institutions.

The Digital Payment in Healthcare Market is segmented as follows:

By Type of Payment

• Direct Payments
  • Credit/Debit Card Payments
  • Bank Transfers
  • Digital Wallets
• Indirect Payments
  • Third-Party Payers
  • Health Savings Accounts (HSAs)
  • Flexible Spending Accounts (FSAs)

By Solution

• Application Program Interface
• Payment Gateway
• Payment Processing
• Payment Security & Fraud Management
• Transaction Risk Management
• Others

By End-User

• Hospitals
• Medical Clinics
• Pharmacies
• Health Insurance Companies
• Telemedicine and Remote Health Services
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America