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 Processing Solutions market.
Trusted Business Insights presents an updated and Latest Study on Payment Processing Solutions 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 Processing Solutions 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: Global Payment Processing Solutions Market
The global payment processing solutions market size was valued at USD 22.34 billion in 2020 is expected to grow at a compound annual growth rate (CAGR) of 13.4% from 2021 to 2027. The market growth can be attributed to high penetration of smartphones and adoption of mobile payment applications. The smartphone applications are providing alternative billing options to customers with the help of card-reader attachments and services. These applications have enabled customers to make faster and easier billing transactions.
Increasing preference of customers for online shopping has compelled retailers to opt for payment processing solutions. These solutions help retailers to curb the risk of fraudulent transactions and improve customer service. Payment processing solutions are using machine learning and Artificial Intelligence (AI) technologies, which are acting as an anti-fraud tool. Furthermore, these solutions can be easily integrated with the Point of Sale (POS) systems, thereby propelling the market growth.
Various factors such as evolving customer expectations, technological advancements, and robust infrastructure are expected to create growth opportunities for the market. Supportive government policies and initiatives to promote digital transactions are anticipated to fuel market growth over the forecast period 2021-2027. For instance, the Indian government launched the ˜Digital India campaign in 2015 to promote the adoption of digital transactions. This initiative has boosted the adoption of payment processing solutions in the country.
Customers demand for immediacy of settlements and payments is expected to majorly contribute to the market growth. The convenience and speed of online shopping have altered customer expectations about the immediacy of payment experience. Customers are expecting faster transaction services from all the sectors. Moreover, smartphone technology has allowed customers to access an ever-expanding range of services through mobile apps.
However, numerous factors such as lack of digital literacy in emerging economies and absence of a global standard for international transactions are anticipated to adversely impact the market growth over the forecast period. In addition, cyber-attacks are further affecting market growth. Rapid change in the payments space, including the development of real-time and blockchain payments, has disrupted the model of traditional payment providers. This has eventually opened various avenues for cyber attackers. However, progressive changes in regulatory frameworks are expected to curb down these attacks over the forecast period.
Payment Method Insights: Global Payment Processing Solutions Market
Based on the payment method, the payment processing solutions market has been segmented into credit card, debit card, and e-wallet. The credit card segment held the largest market share in 2019. Credit card processing tools are widely used by businesses as these tools allow businesses to align the essential data of their businesses, i.e. business orders, shipping and invoicing, and inventory level, within the business ERP system so that the businesses would function efficiently. Manually entering data at the time of the transaction process is time-consuming and prone to human error. With an integrated credit card processing solution, theres a continuous flow of data to ERP systems that eliminates entry errors and avoids data redundancy.
The e-wallet segment is anticipated to witness the fastest growth over the forecast period. Increasing penetration of smartphones and laptops across the globe is instrumental in fueling the adoption of e-wallets. Increased payment processing speed and convenience of these e-wallets are expected to create growth opportunities for the segment over the forecast period. The rise of numerous e-commerce platforms across the globe is also propelling the e-wallet segment growth.
End-use Insights: Global Payment Processing Solutions Market
Based on end-use, the market for payment processing solutions has been segmented into hospitality, retail, utilities and telecommunication, and others. The hospitality segment lead the market in 2019. The hospitality industry is a wide category of fields within the service industry, which includes food and beverages, event planning, transportation, lodging, and traveling. A hospitality unit such as a hotel and restaurant consists of multiple groups, including direct operations and facility maintenance, which are focusing on adopting payment processing solutions. Moreover, travelers across the globe are becoming increasingly reliant on their smartphones and are preferring to pay for their goods and services online.
The retail end-use segment is anticipated to witness the fastest growth over the forecast period. Vendors are focusing on providing customized retail payment processing solutions that allow merchants to provide flexible transaction methods at the point of sale. This helps retailers to enhance customer service with safe, quick, and efficient checkouts. Furthermore, retailers are widely adopting these solutions to gain complete visibility in payment transactions.
Regional Insights: Global Payment Processing Solutions Market
North America lead the market for payment processing solutions in 2019. High adoption of digital payment solutions across the North American countries is expected to contribute to the regional market growth. Moreover, growing adoption of mobile wallets in the region is expected to fuel regional market growth. Furthermore, in the North American countries, a credit card is the most preferred mode of money transfer among customers in both point-of-sale (POS) and online methods.
Asia Pacific is expected to emerge as the fastest-growing regional market for payment processing solutions over the forecast period. Growing adoption of smartphones, coupled with internet services, is expected to accelerate the regional market growth. Over the past few years, the region has been witnessing an increased adoption of alternative transaction methods, such as bank transfers and e-wallets. Moreover, growing retail market in the region is expected to create growth opportunities for the regional market.
Key Companies & Market Share Insights: Global Payment Processing Solutions Market
The market for payment processing solutions is lead by players such as Amazon Payments Inc.; PayPal Holdings, Inc.; and Authorize.Net. The market vendors are focusing on partnerships to expand their product portfolio and gain a competitive edge over other vendors. For instance, in September 2018, PayU Group entered into a partnership with PhonePe to increase its online merchant database in India. This partnership intends to offer a better payment experience for the increasing digital-savvy merchants as well as consumers.
Vendors are focusing on innovations to differentiate and personalize their solution offerings for potential customers. Moreover, vendors are significantly investing in R&D activities for innovating and updating their products and solutions. Mergers & acquisitions and new product launches are some of the key strategies adopted by these vendors to strengthen their foothold in the payment processing solutions industry. For instance, in September 2018, Global Payments Inc. partnered with Ingenico Group to offer advanced payment terminal services to enhance the consumer experience. This partnership was aimed at expanding its small and medium enterprises customer base. Some of the prominent players in the payment processing solutions market include:
Key companies Profiled: Global Payment Processing Solutions Market Report
The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global payment processing solutions market report based on the payment method, end-use, and region:
Payment Method Outlook (Revenue, USD Billion, 2016 – 2027)
- Credit Card
- Debit Card
End-use Outlook (Revenue, USD Billion, 2016 – 2027)
- Utilities & Telecommunication
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