Payment Gateway Market Outlook 2031
The Global Payment Gateway Market size was valued at USD 26.79 Billion in 2022 and is likely reach to USD 151.18 Billion by 2031, expanding at a CAGR of 21.2% during the forecast period, 2023-2031. The growth of the market is attributed to the rapid digital transformation of payment systems and the rising popularity of cashless payment through mobile methods.
A payment gateway refers to an electronic platform through which a consumer can make the payment digitally or make cashless transactions possible. It is a high-end payment service system that allows consumers to pay directly to merchants using either their smartphones or swiping debit or credit cards to the card reading machines.
The payment gateway basically provides a better payment experience and payment security for consumers as it offers a safe mode of transaction and reliable payment methods. As a result, several merchants adopt several payment gateway methods such as point-of-sale terminals, especially at most brick-and-mortar stores to ensure a convenient and effective checkout process for customers.
Similarly, these payment platforms are also widely used as a ‘checkout’ portal for online stores to complete the payment process of consumers. Every provider of payment gateway had to link with banking organizations to facilitate payment services such as UPI, RTGS, or NEFT using net banking facilities by customers.
The COVID-19 pandemic opened up several opportunities for market expansion as consumers had to rely on online platforms for buying their essential house items due to movement restrictions, impacted by emergency lockdowns. This resulted in a rapid surge in online sales, which led to the massive growth of e-commerce platforms.
Moreover, government regulations encouraging consumers to use digital platforms to allow contactless and cashless payment in a view to curb the virus spread further boosts the market during the pandemic.
Payment Gateway Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for reliable payment methods that can offer an easy and fast payment experience for customers is a key factor driving the market.
- Rising acceptance of mobile payment processes by merchants to secure their transaction platforms presents another key driver of the market.
- High penetration of the high-speed internet and rising smartphone users, especially in developing countries are major factors fueling the market.
- Rapid expansion of e-commerce retail platforms offering a range of consumers ranging from medicines to cosmetic items is expected to propel the market in the coming years.
- Issues related to the personal data protection of users and increasing incidences of fraudulent online payment activities are major challenges that can impede the market during the forecast period.
- Massive R&D programs and technological advancements for the development of innovative payment methods and platforms to expand more consumer base globally are creating immense opportunities for the market.
Scope of Payment Gateway Market Report
The report on the global payment gateway market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes
|
Details
|
|
Report Title
|
Payment Gateway Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
|
|
Base Year
|
2022
|
|
Historic Data
|
2016–2021
|
|
Forecast Period
|
2023–2031
|
|
Segmentation
|
Types (Hosted and Non-hosted), Enterprises (Large Enterprises and Small & Medium Enterprises), and End-users (BFSI, Travel & Hospitality, Retail & E-commerce, Media & Entertainment, and Others)
|
|
Regional Scope
|
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
|
|
Report Coverage
|
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
|
|
Key Players Covered in the Report
|
PayPal Holdings, Inc.; Amazon Pay; Authorize.Net; Verifone Holdings, Inc.; Stripe, Inc.; Wepay, Inc.; Skrill Limited; PayU Group; and Bitpay, Inc.
|
Payment Gateway Market Segment Insights
Types Segment Analysis
Based on types, the global payment gateway market is bifurcated into hosted and non-hosted. The hosted segment accounted for over 55% share of the overall market revenue in 2021 and is expected to expand at a rapid growth rate during the forecast period due to the wide adoption of hosted payment gateways by merchants.
The hosted payment gateway offers a range of advantages such as easy payment processes, secured transactions, and safer options for third-party payment, which help to ensure high convenience for customers.
Enterprises Segment Analysis
On the basis of enterprises, the market is segregated into large enterprises and small & medium enterprises. The large enterprise segment accounted for a dominant market share in 2021, representing over 55% share of the total market revenue, and is projected to register a considerable CAGR during the forecast period.
The segment growth is attributed to the wide installation of websites, offering online payment for products purchase, and the rising need to deploy highly effective payment methods for a better experience for their customers.
End-users Segment Analysis
Based on end-users, the global payment gateway market is segmented into BFSI, travel & hospitality, retail & e-commerce, media & entertainment, and others. The retail & e-commerce segment constituted a major share of the market in 2021, accounting for over 24.5% share of the total market revenue.
Rapid expansion of the e-commerce platforms globally and rising consumers’ preference for online shopping due to heavy discount offers of the consumers' products and door-step delivery services are key factors boosting the segment.
Payment Gateway Market Regional Analysis
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a dominant market share in 2021, representing more than 35% of the global market revenue, and is expected to dominate the market during the projected period.
The regional market growth is attributed to the early adoption of digital technology in payment methods and the wide acceptance of payment gateways by several end-users, especially those associated with retail and e-commerce companies.
Moreover, the presence of key global players in the region such as PayPal Holdings Inc., Amazon Payments Inc., and Mastercard further fuel the regional market. On the other hand, Asia Pacific is a fast-growing market and is projected to hold a key market share in the coming years owing to rising users of smartphones and high penetration of the Internet among smartphone users in the region.
Segments
Types
Enterprises
- Large Enterprises
- Small & Medium Enterprises
End-Users
- BFSI
- Travel & Hospitality
- Retail & E-commerce
- Media & Entertainment
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global payment gateway market are PayPal Holdings, Inc.; Amazon Pay; Authorize.Net; Verifone Holdings, Inc.; Stripe, Inc.; Wepay, Inc.; Skrill Limited; PayU Group; and Bitpay, Inc.
Some of these players have adopted a series of business development strategies including merger and acquisition, product launches, production capacity expansion, and entering into collaboration and partnerships to expand their consumer base and enhance their market share.
For instance,
- In May 2021, a leading US-based financial service provider, Stripe, Inc. entered into a partnership with GrabPay, a major payment solutions provider to expand their business operations in Malaysia and Singapore. The partnership aimed to offer a better online payment method using GrabPay’s e-wallet.
Request For Customization
Enquiry Before Buying
Speak With Analyst
