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The payment gateways market size is projected to increase by USD 11.23 billion with a grow at a CAGR of 13.42% between between 2023 and 2028. Market expansion relies on multiple factors, notably the widespread embrace of contactless payment solutions, spurred by convenience and hygiene considerations. Concurrently, there's an increase in demand for PoS terminals as end-users seek efficient transaction processing. Additionally, the market's trajectory is influenced by a steadfast commitment to ensuring superior customer satisfaction. As businesses prioritize seamless payment experiences and swift transaction processing, the demand for advanced PoS technologies intensifies. This confluence of factors underscores the pivotal role of contactless payments and PoS terminals in shaping the modern retail landscape, driving efficiency, and enhancing overall customer experiences.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Adyen NV, Amazon.com Inc., B2Broker Ltd., BitPay Inc., Block Inc., CCBill LLC, Fidelity National Information Services Inc., Global Payments Inc., Infibeam Avenues Ltd., Ingenico Group SA, JPMorgan Chase and Co., Mastercard Inc., MIH PayU BV, One97 Communications Ltd., Payoneer Global Inc., PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Stripe Inc., VeriFone Inc., and Visa Inc. . Additionally, Adyen NV: The company offers payment gateways such as Adyen digital payment solutions. Also, the company provides financial technology with products such as payment platforms and other financial products.
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In today's digital economy, the use of payment gateways for online transactions has become increasingly prevalent. With the consumer inclination towards cashless economy and the coronavirus outbreak driving record highs in e-commerce sector, the need for secure and cost-effective payment solutions has become imperative. Payment gateways facilitate online transactions by processing sensitive data securely, enabling consumers to make payments online using various digital methods such as cards and bank apps. Merchant-acquiring companies like Worldline play a crucial role in providing digital infrastructure for small merchants to accept bulk transactions through payment gateways.
However, with the increasing use of online services, the risk of cyberattacks leading to financial losses and business interruptions is a significant concern. Therefore, it is essential to ensure robust cybersecurity measures are in place to protect sensitive data during online transactions. Payment gateways have become an integral part of the digital payments ecosystem, enabling contactless payments and record-breaking bulk transactions. Such gateway providers must prioritize security while offering cost-effective solutions to cater to the growing demand for digital payments. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high adoption of contactless payment solutions is one of the key drivers supporting the market growth. The market has experienced significant growth with the advent of mobile payment gateways, such as Apple Pay, Samsung Pay, and Android Pay. Consumers can now make payments online without the need for physical credit or debit cards. Retailers utilize Point-of-Sale (PoS) terminals, which accept and process payments over the internet and print receipts. Sensitive financial data is saved on smartphones for these transactions. Big players offer NFC-based mobile payment options for security reasons, preventing unauthorized access to card information.
Further, with increasing internet penetration, online transactions have become commonplace. Merchant acquiring companies like Worldline and digital payment platforms such as bank apps, digital infrastructure, and mobile-based apps have made transactions more convenient for consumers. Small merchants and micro merchants have also benefited from cost-effective digital solutions. The pandemic has accelerated the shift towards a cashless economy, with e-commerce transactions through platforms like Flipkart-owned PhonePe and escrow accounts becoming increasingly popular. However, security concerns, including phishing, denial of services, and cyberattacks, remain a challenge for the digital payment industry. Hosted payment solutions and internet banking platforms like Paystack must prioritize security to maintain consumer trust. Such factors will increase the market growth during the forecast period.
The emergence of NFC-based payment technology is another factor supporting the market growth. In the modern digital economy, payment gateways facilitate online money transfers between consumers and merchants, enabling secure and efficient transactions in a cashless society. These platforms utilize sensitive data, such as payment information, through the internet for various online transactions. With increasing internet penetration, digital payments have become a cost-effective solution for both large enterprises like Worldline and merchant acquiring services, as well as micro merchants and small businesses. It supports various digital channels, including bank apps, digital infrastructure, and mobile-based payments. During the coronavirus pandemic, the use of digital payments, such as those facilitated by Flipkart-owned PhonePe and other e-commerce transactions, has surged.
However, security concerns, including phishing, denial of services, and cyberattacks, necessitate robust security measures and escrow accounts to protect consumer interests and maintain trust. Hosted payment solutions, like Paystack, offer a convenient and cost-effective alternative for merchants, allowing them to accept online payments without the need for extensive digital infrastructure. Despite these benefits, it is crucial to address the potential risks and challenges associated with digital transactions, ensuring a secure and reliable experience for all parties involved. Thus, the increase in the demand for cashless transactions is expected to propel the growth of the market during the forecast period.
One of the major challenges for the market is the high operating and maintenance costs of PoS terminals. The market for payment gateways has experienced substantial growth, driven by the increasing preference for digital payments among consumers. With the widespread use of the internet and the rise of online transactions, businesses, including retail stores and restaurants, have shifted towards digital solutions. Payment gateways facilitate the transfer of money securely over the internet, processing sensitive data from cards or bank apps. Worldline, Merchant acquiring, and Unified Payments are key players in the merchant acquiring space, providing digital solutions for businesses. Small merchants and micro merchants have also embraced digital payments due to their cost-effectiveness, especially during the pandemic. Online money transfers through digital channels, such as internet banking, mobile-based apps, and e-commerce transactions, have become increasingly popular.
However, payment gateways offer various solutions, including hosted payments, to ensure secure transactions. Flipkart-owned PhonePe and Paystack are popular digital payment platforms that provide escrow accounts to mitigate interest risks for merchants. The growth of digital payments in a cashless economy has been accelerated by the coronavirus pandemic. Despite these benefits, the cost of using gateways, including setup costs, transaction fees, and monthly subscription fees, can be significant. Nevertheless, for businesses seeking to expand their reach and offer convenience to consumers, the investment may be worthwhile. This is a potential challenge that could impede the growth of the featured market during the forecast period.
The market share growth by the large enterprises segment will be significant during the forecast period. The market is experiencing significant growth due to the increasing number of online transactions among large enterprises in sectors such as BSFI, IT, and manufacturing. The market is driven by the shift towards digital payments and cashless economies, as well as the integration of contactless and card-based payments in modern vending machines.
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The large enterprises segment was valued at USD 2.80 billion in 2018. Revenue in this market is primarily generated by large enterprises, which prefer technologically advanced services like transaction gateways and mobile wallets. Key factors fueling market growth include the widespread use of internet penetration, the rise of e-commerce transactions during the pandemic, and the increasing popularity of mobile-based payments. Companies such as Worldline, Unified Payments, and Flipkart-owned PhonePe are major players in merchant acquiring and digital payments. However, security concerns, including phishing, denial of services, and cyberattacks, remain significant challenges for the market. Cost-effective solutions for small merchants and micro merchants are also driving growth, with digital infrastructure and bank apps becoming increasingly important for online money transfers. Despite these opportunities, the market faces challenges such as the need for robust security measures and the potential for interest rates to impact consumer adoption of digital channels. This is a key factor driving the growth of the focus market.
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APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in APAC is projected to experience significant growth due to the increasing adoption. The coronavirus outbreak has led to a consumer inclination towards contactless services and online transactions, resulting in record highs for the e-commerce sector. Integration of transaction gateways with online platforms and hardware devices, such as smartphones and PoS systems, is crucial in preventing financial losses and business interruptions.
In addition, developing sectors, including the BFSI industry and e-commerce, are prioritizing digitalization and processing efficiency to ensure customer satisfaction. Digital wallets and contactless payments are gaining popularity for faster transactions and improved customer relationships. Bulk transactions and onsite payments are also being facilitated through advanced gateway solutions. Mortgages and retirement planning are among the various use cases for payment gateways, further expanding their market reach. Such factors are expected to drive the regional market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Payment gateways are essential components of online businesses, enabling secure and efficient transactions between merchants and customers. In today's market, numerous payment gateways compete for merchants' attention, offering various features and benefits. Merchants must consider several factors when choosing a payment gateway, such as ease of integration, transaction fees, security, and compatibility with different currencies and payment methods. Some popular payment gateways include PayPal, Stripe, and Square. These companies invest heavily in marketing efforts to attract new merchants. For instance, they offer free trials, discounted rates for new customers, and seamless integration with popular e-commerce platforms.
Additionally, they provide advanced features like fraud detection, recurring billing, and customizable checkout experiences. Moreover, consortiums like Masterpass and Visa Checkout aim to simplify the checkout process by allowing customers to save their payment information and use it across multiple merchants. Transacting with these services is convenient and secure, as they are backed by the respective payment networks. In conclusion, payment gateways play a crucial role in the success of online businesses. Merchants must carefully evaluate their options based on their specific needs and choose a gateway that offers the best combination of features, security, and cost-effectiveness.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.42% |
Market growth 2024-2028 |
USD 11.23 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.57 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 30% |
Key countries |
China, US, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adyen NV, Amazon.com Inc., B2Broker Ltd., BitPay Inc., Block Inc., CCBill LLC, Fidelity National Information Services Inc., Global Payments Inc., Infibeam Avenues Ltd., Ingenico Group SA, JPMorgan Chase and Co., Mastercard Inc., MIH PayU BV, One97 Communications Ltd., Payoneer Global Inc., PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Stripe Inc., VeriFone Inc., and Visa Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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