Payment Gateways Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Japan, UK, Germany - Size and Forecast 2024-2028

Payment Gateways Market Size 2024-2028

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 such as virtual cards, spurred by convenience and hygiene considerations. Concurrently, there is an increase in the 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 and cardless ATMs intensifies. This combination 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.

What will be the Size of the Payment Gateways Market During the Forecast Period?

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Payment Gateways Market Segmentation

The payment gateways 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.

• End-User Outlook 
  • Large enterprises
  • Micro and small enterprises
  • Mid-sized enterprises
• Type Outlook
  • Hosted
  • Non-hosted
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By End User

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. 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 along with an increase in the need for cyber security. Despite these opportunities, the market faces challenges such as the need for comprehensive 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 payment gateways market.

By Region

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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. 

Payment Gateways Market Dynamics 

In today's digital economy, the prevalence of payment gateways for online transactions has significantly increased. With consumers leaning towards cashless methods and the e-commerce sector reaching record highs due to the coronavirus outbreak, secure and cost-effective payment solutions are essential. Payment gateways process sensitive data securely, enabling consumers to make online payments using various digital methods, such as cards and bank apps. Merchant-acquiring companies are vital in providing the digital infrastructure for small merchants to accept bulk transactions through payment gateways.

The global payment gateway market is undergoing substantial growth due to the growth in e-commerce and the rising need for secure payment gateway solutions. Businesses depend on online payment gateway services to process digital transactions efficiently, ensuring secure and seamless customer experiences. Payment gateway systems offer essential features like fraud protection, data encryption, and multi-currency support for modern digital transactions. According to the global payment gateway market report, the payment gateway industry continues to innovate, providing advanced digital payment gateway solutions tailored to various business needs. Payment gateway service providers focus on enhancing security and performance, making the adoption of digital payment gateway systems essential for businesses aiming to stay competitive in today's increasingly digital economy.

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 strong 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.

Key Market Driver

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. 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 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 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 must prioritize security to maintain consumer trust. Such factors will drive payment gateways market growth during the forecast period.

Significant Market Trends

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 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 has risen.

However, security concerns, including phishing, denial of services, and cyberattacks, necessitate strong 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 boost payment gateways market growth during the forecast period.

Major Market Challenge

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. 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 payment gateways market growth during the forecast period.

Customer Landscape

The payment gateways 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 payment gateways market research and growth 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

Major Payment Gateways Market Companies

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.

• Amazon.com Inc. - The company specializes in payment gateway solutions, including Imagine Payments. The payment gateways market refers to the industry that provides businesses with secure and efficient ways to process customer transactions online.

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 payment gateways 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.

Market Analyst Overview

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. 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.

The payment gateway market is growing rapidly, driven by the increasing demand for secure and seamless online transactions. As e-commerce expands globally, the adoption of online payment gateway solutions such as crypto wallets is rising, enabling businesses to facilitate digital payments more efficiently. The payment gateway industry offers various services, including fraud detection, transaction processing, and multi-currency support. Payment gateway service providers are continually enhancing their offerings to meet the evolving needs of businesses. Payment gateway systems play a crucial role in ensuring secure and smooth transactions across platforms. The global payment gateway market report highlights the industry's growth potential, driven by advancements in digital payment gateway technologies and increased consumer reliance on cashless payments. Businesses are adopting advanced payment gateway solutions to stay competitive.

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.

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What are the Key Data Covered in this Payment Gateways Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market analysis and report of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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