The global payment gateway market is expected to reach USD 132.24 billion by 2030, expanding at a CAGR of 22.1% from 2022 to 2030, according to a new report by Grand View Research, Inc. Increase in online transactions, coupled with the advancements in payment methods, such as cash pooling, cashless transactions, and token systems, is expected to fuel the market growth. Moreover, rapidly increasing internet penetration across the globe is anticipated to fuel market growth over the forecast period.
Payment Gateway Market Report Highlights
- In terms of type, the hosted segment is expected to retain its dominance over the forecast period owing to features such as easy payment integration, built-in compliance capabilities, and the ability to integrate more diverse methods
- In terms of enterprise size, the small and medium enterprise segment is expected to witness significant growth over the forecast period. Payment gateways are used by small and medium enterprises to increase their profitability by delivering better customer experiences and reducing transaction costs
- In terms of end-use, the retail and e-commerce sector dominated the market in 2021. Factors such as better shopping experience and increased smartphone penetration are expected to increase the adoption of payment gateway systems in the retail and e-commerce sector
- North America dominated the market in 2021 and is expected to show similar trends in the near future. Growing e-commerce sales and the rapidly changing retail market in North America are the primary factors propelling the demand for fast payment solutions in the region
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A payment gateway is a real-time payment system that allows instant funds transfer or authorizes a user’s transfer of funds between financial institutions, to sellers or buyers without direct delivery of either bank or credit card account information. Thanks to the COVID-19 pandemic, the demand for cashless transactions has increased considerably among people. The small and medium enterprises registered a significant revenue share in the market. The large enterprise sub-segment is expected to be highly beneficial and market is predicted to grow due to increased e-commerce sales. Retailers and e-commerce merchants across the globe are focusing on expanding their businesses in other regions and are partnering with payment service providers. These partnerships are allowing merchants to benefit from the opportunities generated by the globalization of the e-commerce sector. Financial service providers are also focusing on developing innovative payment gateway solutions for merchants. Payment gateways help merchants that manage a large volume of transactions automate the complete money transfer process with faster processing speed and error-free computations. Hosted payment gateways are expected to account for 44.6% of the total online market.
The financial service providers focus on incorporating technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in their payment gateway systems for process automation and fraud detection. Financial service providers are also focusing on developing innovative payment gateway solutions for merchants. For instance, in October 2021, Pine Labs, a software development company, announced the launch of Plural, a payment gateway platform, to offer merchants an integrated solution for all kinds of payments.
The COVID-19 pandemic has positively impacted the market owing to changing consumer preference toward online shopping. Numerous e-commerce vendors are developing their payment gateway systems combined with eWallet services. This development is mostly identified among merchants handling a large volume of transactions. Moreover, e-commerce vendors also saw an increase in their sales during the pandemic. For instance, Amazon.com, Inc. saw a 40% year-on-year growth in the second quarter of 2020 due to an increase in online grocery sales.
Payment Gateway Market Insights By Geographical Regions:
North America dominated the market and accounted for more than 36.0% share of the global revenue. The North America market will experience impressive growth due to instant-payment trends over the forecast period. The growth can be attributed to technological advancements and the application of payment gateways in flourishing end-use segments such as retail and e-commerce. The Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growth can be attributed to several initiatives undertaken by governments to improve the online payment infrastructure in Asia Pacific countries.
Industry Analysis By Major Competitors:
The payment Gateway Industry remains substantially consolidated, with top six vendors holding over 70% of the market revenue share. Vendors in the market are focusing on acquisitions and extending their product and service portfolios in untapped industries. Security concerns related to online payments are encouraging service providers to adopt advanced technologies and solutions to curb fraudulent activities. New product developments and collaborations are some of the key strategies adopted by players to gain a competitive edge in the market. Some of the prominent players operating in the global payment gateway market are:
- Adyen
- Amazon Payments Inc.
- Net
- Bitpay, Inc.
- Braintree
- PayPal Holdings, Inc.
- PayU Group
- Stripe
- Verifone Holdings, Inc.
- Wepay, Inc.
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Payment Gateway Market Segmentation
Grand View Research has segmented the global payment gateway market based on type, enterprise size, end-use, and region:
Type Outlook (Revenue, USD Billion, 2017 – 2030)
- Hosted
- Non-hosted
Enterprise Size Outlook (Revenue, USD Billion, 2017 – 2030)
- Large Enterprises
- Small & Medium Enterprises
End-use Outlook (Revenue, USD Billion, 2017 – 2030)
- BFSI
- Media & Entertainment
- Retail & E-commerce
- Travel & Hospitality
- Others
Payment Gateway Regional Outlook (Revenue, USD Billion, 2017 – 2030)
- North America
- U.S.; Canada
- Europe
- Germany; U.K.
- Asia Pacific
- China; India; Japan
- Latin America
- Brazil
- Middle East & Africa
List of Key Players of Payment Gateway Market
- Adyen
- Amazon Payments Inc.
- Net
- Bitpay, Inc.
- Braintree
- PayPal Holdings Inc.
- PayU Group
- Stripe
- Verifone Holdings Inc.
- Wepay, Inc.
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
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