Payment Gateway Market By Type (Hosted & Non-Hosted), Enterprise Size (Large Enterprise and Small & Medium Enterprise), and End Use (BFSI, Media & Entertainment, and Retail & E-Commerce, Travel & Hospital, and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2030
Market Perspective
The global Payment Gateway Market size was worth around USD 117.26 billion in 2022 and is predicted to generate a revenue of USD 276.20 billion by 2030 at a CAGR of nearly 10.99% between 2023 and 2030.
The global market is witnessing significant growth, driven by several key factors. One of the primary drivers is the increasing global demand for mobile-based payments, as consumers increasingly prefer making purchases through digital transactions. Additionally, the expanding accessibility and popularity of high-speed internet are also contributing to the payment gateway market share.
Moreover, the rising e-commerce sales and increasing internet penetration globally are anticipated to play a significant role in the market development. Payment gateways play a crucial role in managing debit and credit card payments, making it easier for buyers and sellers to conduct efficient online deals. They enable the transfer of sensitive data between payment gateways and front-end processors, ensuring secure and seamless online transactions.
As technology continues to evolve, the desire for quick and hassle-free money transactions is growing. Payment gateways are continually evolving to meet shifting customer preferences and advancements in technology. With the rise of big transaction data and the increasing use of various online payment methods such as mobile wallets, debit cards, credit cards, and net banking, the payment gateway market is expanding.
Key Insights
- Based on type, the hosted segment held the largest market share
- Based on enterprise size, the large enterprise segment dominated the market
- Based on end use, the retail & e-commerce segment generated the highest revenue
- On the basis of region, Asia Pacific accounted largest market share
Increasing Traffic on E-commerce Website and Rising Internet Penetration is Projected to Drive the Market
It is anticipated that increasing e-commerce sales and faster internet will foster the expansion of the payment processor sector. Modern payments, smartphone transactions, and a rise in online credit card payments have caused retail to depart from conventional business models. Retailers are working to create cutting-edge mobile payment solutions, manage risk, and provide excellent customer support both online and offline. Although some aspects of this evolution will occur naturally, there will be many chances for various parties to influence the final product. For populations without access to banking, the cashless revolution has major consequences.
A Singapore-based AI-based innovative company called PayFuture Gateway Platform, for instance, has introduced a new high-performance payment gateway connector that enables online access to well-liked local payment choices across numerous emerging markets. Additionally, among the key factors propelling the growth of the payment gateway market are the globally expanding internet penetration, advancements in mobile payment technology, and an increase in the use of smartphones and mobile accounts for a variety of purposes.
Lack of Internet Providers in Emerging Countries and Cyber Crime to Restrain the Market Growth
In developing countries, a scarcity of infrastructure and an unfavorable regulatory climate are the key obstacles to establishing secure internet connectivity. Even though the internet and mobile devices are widely used in countries like India, not everyone has continuous and easy access. Although dependable internet connectivity is still very difficult to secure and maintain in developing countries, digital payments are highly connection-dependent.
The exponential growth of the internet and the concurrent increase in cyber threats have alarmed international organizations. According to a NITI Aayog report, more than 50% of the organizations in India were affected by phishing, loss of service, malware, and other cyber-attacks in 2020. The reliance on online services may decrease as a result of the potential financial losses and company interruptions that these attacks can cause.
Recent Development
In December 2020: The UK took additional measures to make financial services more available for those setting up bank accounts, and retirement plans, and obtaining mortgages, insurance, or credit. These elements would encourage the implementation of payment gateways throughout Europe, along with the emergence of e-commerce as a booming industry.
Segmentation Analysis
Based on type, the market is categorized into hosted and non-hosted. As per the type, the Payment gateway market is dominated by the hosted segment. Due to elements like simple payment establishment processes and reduced merchant liability, the demand for hosted payment gateways is rising among retailers around the globe. A hosted payment gateway is a third-party checkout mechanism that sends customers to the website of the payment service provider (PSP).
Hosted payment gateways will continue to be a popular option as utilities search for methods to enable the use of dependable online billing and payments. Hosted payment gateways also enable businesses to cut down on fraud and concentrate on their main services. Additionally, it adheres to the Payment Card Industry Data Security Standard (PCI DSS), making them a more secure choice for processing payments
On the basis of enterprise size, the market is categorized into large enterprises and small & medium enterprises. The large enterprise segment dominates the market share and is anticipated to hold a commanding market share. Due to growing consumers’ inclination towards online shopping, massive businesses like e-commerce companies are gaining the highest transaction footfall in the payment gateway market. A payment gateway is a particular kind of payment platform that takes a range of payment options, controls the risks associated with those payments, processes them through the proper channels, and gives both the financial institution and the company customer tracking information.
Financial institutions can streamline their payment infrastructure and carry out a productive payment strategy on a singular, integrated, and real-time platform thanks to the enterprise gateway payments platform. The demand for payment gateways in the large company sector is increasing due to the increased adoption of digital transaction methods and payment processing by large-scale businesses to collect money from their clients.
By End Use, the market is categorized into BFSI, media & entertainment, retail & e-commerce, travel & hospital, and others. The retail & e-commerce segment is expected to witness substantial growth during the forecast period. The increase in online transactions in global retail and e-commerce companies is responsible for the segmental growth. Additionally, it is expected that over the course of the forecast period, the growing demand for online retailing will propel market expansion.
Due to the COVID-19 pandemic's worldwide quarantines of millions of people, services, internet product sales, and entertainment, all experienced sharp growth. According to a study by ACI Worldwide, the number of transactions in the majority of the retail sectors increased by 74% this year compared to the same period in the previous few years, which fuelled market growth.
Asia Pacific is Dominating the Market
The Asia-Pacific region is poised to maintain its dominance in the payment gateway market, fueled by a variety of government initiatives aimed at improving the online payment infrastructure across the region. One such example is the Reserve Bank of India's (RBI) control of several gateways, which has resulted in successful digital payments in India. Additionally, the Chinese government's efforts to expand internet access in rural areas are expected to boost the market growth potential for online payment gateways in the region.
Apart from this, APAC has a massive population, which has led to a substantial increase in the number of transactions. Secondly, the region has a rapidly growing e-commerce sector, which has fueled the demand for online payment solutions. Thirdly, many governments in the region have implemented initiatives aimed at improving online payment driving the market growth.
North America is the Second Largest Payment Gateway Market Due to the Presence of Key Players in the Region
Due to the increasing consumer reliance on electronic billing, the enormous popularity of mobile commerce, technical advancements, and significant applications of payment gateway in various end-use segments, North America is the market with the fastest growth. The presence of well-known players like Square, BluePay, MasterCard, PayPal Holdings Inc., and Amazon Payments Inc. is another factor driving the market growth in this region.
Competitive Landscape
- Amazon Payments, Inc.
- NET.
- PayPal Holdings, Inc.
- PAYTM MOBILE SOLUTIONS PRIVATE LIMITED
- WIRECARD
- NASPERS
- BitPay Inc.
- WePay Inc.
- VERIFONE, INC.
- VISA
The global payment gateway market is segmented as follows:
By Type
- Hosted
- Non-Hosted
By Enterprise Size
- Large Enterprise
- Small & Medium Enterprise
By End Use
- BFSI
- Media & Entertainment
- Retail & E-Commerce Grade
- Travel & Hospital
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Payment Gateway Market By Type
- March-2023
- 148
- Global
- information-technology-communication-iot
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