Payment as a Service Market

Payment as a Service Market Outlook 2031:

The global payment as a service market size was valued at USD 13.88 Billion in 2022 and is projected to reach USD 49.60 Billion by 2031, expanding at a CAGR of 15.2% during the forecast period 2023 - 2031. The growth of the market is attributed to rise in demand of convenient and easy purchase of services & goods through mobile application, penetration of smartphones, and increasing e-commerce business led to exponential shift towards cashless or digital payment.

The payment business has experienced a radical change and the traditional payment modules have been substituted by the new modules where the payment is just a click away. The Payment as a Service (PaaS) is a platform provided by third party company to enterprises for accepting electronic payments by various methods such as real-time bank transfer, credit card, debit card, and net banking. PaaS uses software as a service model (SaaS) to streamline the payment for customer.

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Digital payments are done through website, e-wallets, and other applications. PaaS manages transaction between seller and buyer as well as PaaS is trusted by both. It safeguards the payment information and offers risk free payment. The COVID-19 pandemic outbreak has a positive impact on the payment as a service market. Pandemic lead to reduction in cash-based transaction and increase in mobile payment by e-wallets.

Payment as a Service Market Trends, Drivers, Restraints, and Opportunities

• Rising transaction on cloud-based service model then on-premise service model and optimized consumer experience for secure and fast payment methods are key factors driving the payment as a service market growth.
• Growing focus of government to promote payment solution based on real-time and secure transactions is projected to drive the payment as a service market market expansion during the forecast period.
• Increasing cyber-crime and data stealing can hamper the payment as a service market growth in the projected timeline.
• Charging service fees by third party payment processors and payment gateways act as a major challenge that can restrict the payment as a service market growth.
• Offering enhanced security solution and integrating application process interface (API) software with payment platform service is projected to create significant growth opportunities for the market.

Scope of Payment as a Service Market Report

The report on the global payment as a service market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Payment as a Service Market Segment Insights

Professional segment is expected to grow at a rapid pace

Based on services, the global payment as a service market is bifurcated into managed and professional. The professional segment is expected to grow at a rapid pace during the forecast period as professional services contain maintenance, consulting, integration, training, and deployment.

The growing demand for API based services along with transformation of traditional checks to digital payment is projected to boost the growth of the professional segment.

However, the managed segment is anticipated to expand at a substantial CAGR during the forecast period in the coming years due to reducing infrastructure complexity thus providing safe infrastructure and reduced operational cost.

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Healthcare segment is projected to expand at a considerable CAGR

On the basis of industry verticals, the payment as a service market is segregated into healthcare, retail & ecommerce, BFSI, travel & hospitality, and others. The retail & ecommerce segment is expected to account for a major market share in the projected timeline owing to integration of SaaS, digital stores, and Artificial Intelligence to increase the presence and visibility in market.

Additionally, payment through debit card, credit card, net banking, and e-wallets has reduced operating cost and transaction time. On the other hand, the healthcare segment is projected to expand a considerable CAGR during the forecast period attributed to the increased spending on medical equipment, supplies, and medicines.

Platform segment is estimated to account for a significant market share.

Based on components, the global payment as a service market share is bifurcated into services and platform. The platform segment is estimated to account for a significant market share during the forecast period owing to integration of payment platform with online stores and this platforms are integrated with payment gateways, fraud detection system, and enhanced security.

However, the services segment is anticipated to expand at a substantial CAGR during the forecast period in the coming years due to enhanced customer experience, offering skills required for API based transaction, and fulfilling other customer requirements.

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North America is anticipated to constitute a key market share

In terms of region, the payment as a service market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to adoption of PaaS over traditional system and increased penetration of digital payment instrument.

However, the Asia Pacific market is anticipated to increase at a rapid pace during the forecast period due to use of payment as a service system by small & medium enterprises and large enterprises in the region.

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Segments

Services

• Managed
• Professional

Industry Verticals

• Healthcare
• Retail & E-commerce
• BFSI
• Travel & Hospitality
• Others

Components

• Services
• Platform

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• First American Payments Systems
• Aurus Inc.
• First Data (Fiserv Inc.)
• Verifone Holdings, Inc.
• TSYS (Global Payments Inc.)
• Agilisys Inc.
• Alpha Fintech
• Ingenico
• Pineapple Payments
• PaySafe limited

Competitive Landscape

Key players competing in the global payment as a service market are First American Payments Systems; Aurus Inc.; First Data (Fiserv Inc.); Verifone Holdings, Inc; TSYS (Global Payments Inc.); Agilisys Inc.; Alpha Fintech; Ingenico; Pineapple Payments; and PaySafe limited.

Companies are focusing on development of innovative products, acquisitions, mergers, and partnerships to expand their market share. In January 2019, First Data was acquired by Fiserv Inc. to offer a range of financial services and payments, such as integrated payments, spanning account processing, digital banking, and other products & services. In May 2019, TSYS merged with Global Payments Inc. to provide solutions on payment technologies.