Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Payment Gateway market.
Trusted Business Insights presents an updated and Latest Study on Payment Gateway Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Payment Gateway market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Payment Gateway Market
The global payment gateway market size was valued at USD 14.94 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 10.4% from 2021 to 2027. The market growth can be attributed to the advancements in mobile payment technology and an increase in the use of mobile wallets. The rise in online transactions coupled with the advancement in billing methods, such as the emergence of cash pooling, cashless transactions, and token systems, is further expected to fuel the market growth. The payment gateway systems are widely used in cashless transactions as these systems include effective alert mechanisms, which detect offline and online suspect events.
The adoption of technologies, such as the Internet of Things (IoT) and Artificial Intelligence (AI), has also resulted in the automation of cashless transactions. These technology-integrated systems enable businesses to make more informed decisions. One of the important aspects of businesses is the integration of gateway systems as they transfer the data regarding a transaction between the bank and the billing portal. These systems enable businesses, such as online retail platforms or brick & mortar stores, to collect cash through a bank chosen by the customer without compromising sensitive information.
Rapidly increasing number of internet users across the globe is anticipated to fuel market growth over the forecast period 2021-2027. According to the International Telecommunication Union (ITU), 80% of the population from the developed countries and 45% population from the developing counties have registered to access the internet in 2018. In addition, customers are changing their preferences for making payments, thus growing adoption of online billing methods is driving the market.
The merchants across the globe are focusing on expanding their businesses in other regions, thereby partnering with payment service providers. These partnerships offer the advantage of tapping the opportunities generated by the globalization of e-commerce and enable the integration of gateway systems into their sales channels.
Many e-commerce vendors are developing their own systems combined with eWallet services. This development is mostly identified among merchants handling a large volume of transactions. However, increasing cases of data breaches and cyber-attacks are expected to hinder the market growth over the forecast period.
Type Insights: Payment Gateway Market
Based on the type, the payment gateway market has been segmented into hosted and non-hosted. The hosted segment is expected to continue its dominance over the forecast period owing to various benefits offered by these systems, such as high security, reduced merchant liability, and ready-to-use set up for payments. Merchants prefer hosted methods as they help reduce fraudulent activities and focus more on core business. Moreover, these systems comply with the Payment Card Industry Data Security Standard (PCI DSS) that makes them safe when it comes to payment processing.
The non-hosted segment is expected to witness significant growth over the forecast period. Various businesses prefer full control over their checkout processes where customers can enter their debit or credit card information directly on the checkout page and process the payments using APIs. Also, non-hosted systems can be integrated with online billing solutions by using APIs with any devices, thereby creating growth opportunities for the segment growth over the forecast period.
Enterprise Size Insights: Payment Gateway Market
Based on the enterprise size, the market has been segmented into large enterprises and Small & Medium Enterprises (SMEs). Large enterprises are widely adopting payment gateways as the volume of transactions is very high in large-scale companies. Also, these enterprises require a highly secure and safe mode of transaction that is facilitated by these gateways. The payment gateways use industry-standard encryption and efficiently protect sensitive data of the customers and merchants, thereby creating further growth opportunities in this segment.
The SME segment is anticipated to register the highest growth over the next eight years. Various SMEs are turning to the payment gateways as these systems are faster than manual processing. In addition, companies are restructuring their revenue strategies and businesses by moving towards a digital approach. This is expected to spur the growth prospects of the market in this segment.
End-use Insights: Payment Gateway Market
Based on the end uses, the market has been segmented into BFSI, media & entertainment, retail & e-commerce, travel & hospitality, and others. The retail & e-commerce segment is expected to continue its dominance over the forecast period owing to the growing number of online transactions. Furthermore, increasing demand for online retailing across the globe is anticipated to fuel the segment growth.
The BFSI end-use segment is expected to witness significant growth over the forecast period. The BFSI sector is widely adopting these systems as they provide an end-to-end ecosystem for financial services. Financial companies are challenged with complex cash flows, where cash is collected from numerous sources and routed to various accounts. These gateway systems help them in managing money movement from a single dashboard.
Regional Insights: Payment Gateway Market
North America led the global market in 2019 and is estimated to maintain its position throughout the forecast period. This growth can be attributed to the technological developments and considerable applications of payment gateway in various end-use segments. Increasing dependence of customers on electronic billing is further expected to drive the regional market. Moreover, high popularity of mobile commerce in this region is anticipated to create growth opportunities for the market.
Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growth can be attributed to the several initiatives undertaken by various governments to improve the online payment infrastructure in their countries. For instance, in India, the Reserve Bank of India (RBI) has regulated payment gateways, such as Bharat Bill Pay, Paytm, and Mobikwik. The Chinese government is focusing on improving internet access in rural areas, thereby creating growth opportunities for the market.
Key Companies & Market Share Insights: Payment Gateway Market
These companies are focusing on expanding their product and service portfolio in untapped industries. For instance, in July 2018, Alipay extended its payment services in London, to cement its position in the tourist hub. Security concerns related to online payments are hindering the market growth. Thus, companies are also adopting advanced technologies and solutions to curb down fraudulent activities. Other key strategies undertaken by market participants include new product development and collaborations. For instance, in April 2019, Stripe acquired Touchtech Payments, a startup in Ireland, which works with banks to help them manage and develop the verification process. This acquisition helped Stripe to establish its footprint in Ireland. Some of the prominent players in the payment gateway market include:
Key companies Profiled: Payment Gateway Market Report
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 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global payment gateway market report on the basis of type, enterprise size, end use, and region:
Type Outlook (Revenue, USD Billion, 2016 – 2027)
Enterprise Size Outlook (Revenue, USD Billion, 2016 – 2027)
- Large Enterprises
- Small & Medium Enterprises
End-use Outlook (Revenue, USD Billion, 2016 – 2027)
- Media & Entertainment
- Retail & E-commerce
- Travel & Hospitality
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