Payment processing is defined as a moderator between the bank and the merchant involved in the transaction. This service provider authorizes and validates the payment, by checking if the buyer has abundant funds in their account, if the card is still valid, or if there are no limits on the account, and then transfers the amount to the seller. This can be either for in-person payments or online payments.
Payment processing is one of the most vital tasks for everyday business. Today, online transaction has become one of the most convenient ways of payment for organizations. The payment processing solutions act as a passage while purchasing products & services using credit or debit card, relaying the information and handling the transaction to the bank.
Key Developments in the Global Market
The key industry players are implementing various business tactics & growth strategies such as mergers & acquisitions, partnerships, and geographical business expansion to maintain a robust position in the overall market, which is subsequently helping the payment processing solutions market to grow at a robust pace.
For instance, in September 2018, PhonePe and PayU Group entered into a partnership to increase its online merchant database in India. This strategic collaboration intends to offer a better payment experience for the growing digital-savvy merchants and consumers in the country. Also, Global Payments Inc. entered into a partnership with Ingenico Group in September 2018 to provide advanced payment terminal services. The aim of the company behind this strategic partnership is to enhance the consumer payment experience.
In March 2019, Square, Inc. expanded its omnichannel offerings and announced the availability of the revamped Square for Retail and Square Online Store. These new Square products or offerings are the first to be fully integrated with Weebly, which is a powerful platform for building online store or a website.
In May 2019, ACI Worldwide completed the acquisition of Speedpay, Western Union’s United States bill pay business for around US$750 million. The company, with this acquisition expanded its reach into complementary and existing segments such as insurance, higher education, consumer finance, healthcare, government, utilities, and mortgage.
Impact of COVID-19 Pandemic on the Industry
The COVID-19 pandemic has progressively impacted the global payment processing solutions market as people around the world are adopting digital payment services to reduce the fallout of coronavirus. Besides, e-commerce platforms such as websites that deliver groceries have seen an upsurge in the orders for essential goods. Moreover, retail stores have started taking online payments.
Forecast Analysis of Payment Processing Solutions Market
Global payment processing solutions market is anticipated to observe a progressive growth over the forecast period due to the growing usage of mobile devices. In addition, advancements in digital technology & internet facility are expected to create massive opportunities for the growth of the global market by 2027. However, the rising cases of cybercrime around the world is likely to restrict the market growth in the near future.
The growing adoption of payment processing application in smart phones and a surge in the e-commerce business across the globe are the major factors estimated to propel the growth of the global payment processing solutions market by 2027. Research Dive in its latest published report predicts that the payment processing solutions market will generate $176,749.5 million during the forecast period by 2027. The Asia Pacific market for payment processing solutions is anticipated to witness a significant growth throughout the forecast, owing to the rising government initiatives related to the use of digital payment in the region. The key players functioning in the global industry include Fiserv, Inc., PayPal, Global Payments, Inc., Mastercard, FIS, VISA, Inc., PaySafe, ACI Worldwide, Inc., Wirecard, and Dwolla, Inc.