Payment Gateway Market Report
Payment Gateway Market by Type (Hosted and Non-hosted), Enterprise Size (Small & Medium Enterprise (SME) and Large Enterprise), End-use (Travel & Hospitality, BFSI, Retail & E-Commerce, and Media & Entertainment, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis And Industry Forecast, 2021–2028
Payment Gateway Market Analysis
The global payment gateway market forecast is estimated at $67,434.4 million in the 2021–2028 timeframe, growing from $19,250.0 million in 2020 at a healthy CAGR 16.6%.
Payment Gateway Market Insight
Payments are becoming a more common mode of transaction, and online payment platform such as gateways are becoming more crucial. With technological improvements, the payment gateway platform is expected to suffer a further shift in its efficiency, resulting in the imposition of novel alterations. All of this might result in an umpteen of profits for the economy.
The main restraining factor of payment gateway market is rising cyber security issues.
According to the regional analysis of the market, the Asia-Pacific payment gateway market is anticipated to grow at a CAGR of 17.3%, by generating a revenue of $25,652.0 million during the review period.
Payment Gateway Overview
A payment gateway market is a sort of market that aids in the efficient execution of online transactions between buyers and sellers. It is an ecommerce solution that handles debit and credit card payments by moving sensitive data between payment gateways and front-end processors. As a result, the ecosystem's earnings will be added to the core of e-commerce platforms and jobs. As a result, both new e-commerce platforms' demand for payment gateways and their purchasing power, as well as the general public's masses and trust are expected to rise in the future.
Covid-19 Impact On Payment Gateway Market
COVID-19 has triggered a global public health disaster that has damaged virtually every aspect of people's lives while also placing the global economy on precarious ground. The pandemic and its effects have expedited a number of current trends in consumer and corporate behavior, in the payments sector, as well as bringing new ones, such as supply chain restructuring and cross-border commerce. The payment gateway market has been greatly strengthened in the past year by ongoing movements toward e-commerce, digital payments (including contactless), quick payments, and cash displacement. Amazon, for example, saw 40 % year-over-year growth in the second quarter of 2020, fueled in part by a tripling of grocery sales. Furthermore, differences in purchasing behavior between geographies were greatly decreased, and many consumers, particularly the elderly, began to purchase online for the first time. As a result, electronic peer-to-peer and consumer-to-business payments have increased in popularity. Modern consumers' high expectations compel businesses to offer simpler, faster, and less expensive answers to everyday problems. Furthermore, as the need for cross-border payments grows, businesses must be able to process them swiftly and seamlessly for their customers, which helps to boost the demand for the payment gateway market worldwide.
Increased Ecommerce Sales, as well as Increased Internet Penetration, Projected to Drive the Market Growth
Rising eCommerce sales and improved internet speeds are expected to promote the growth of the payment processing solutions industry. Retail is shifting away from traditional business models due to modern payments, smartphone transactions, and the increased use of online credit card payments. Retailers are putting their efforts on developing innovative mobile payment applications, risk management, and customer service, both online and offline. While certain aspects of this evolution will happen naturally, there will be plenty of opportunities for diverse parties to shape the outcome. The cashless revolution has significant implications for unbanked populations. For example, PayFuture Gateway Platform, a Singapore-based AI-based innovative, has launched a new high-performance payment gateway connector that provides online access to popular local payment options in a variety of emerging markets. With the fast rise of ecommerce around the world, both local and international online merchants may now use Pay Future to join these emerging areas and take advantage of hitherto untapped business prospects. Customers are being prioritized by market participants, who have formed arrangements with credit/debit card companies such as MasterCard, Inc. and Visa, Inc. to simplify the payment process and lower processing rates. Furthermore, the rapidly increasing internet prevalence around the world, developments in mobile payment technology, and an increase in the use of smart phones and mobile wallets for a number of activities are some of the important drivers driving payment gateway market expansion.
To know more about global payment gateway market drivers, get in touch with our analysts here.
Lack of Internet Access in Emerging Countries to Restrain the Market Growth
Internet access in developing countries due to lack of infrastructure and a poor regulatory environment act as a restraining factor. Regardless of the wide internet and mobile penetration across countries such as India, not everyone is able to get seamless and uninterrupted connectivity. Digital payments rely heavily on connection but securing and maintaining reliable internet access across developing countries remain major concerns.
Increasing Demand for Instant Mobile-Based Payments and the Rising Use of Mobile Banking Channels Growth Opportunities
Payment gateway technological improvements have resulted in a broad and developing payment gateway market, as well as a significant growth in the use of BFSI. The sector is expected to rise due to rising demand for rapid mobile payments and increased use of mobile banking channels. Consumers anticipate a flawless user experience in mobile wallets as their tastes shift toward digital payment technology. As a result, the demand for secure and reliable payment gateways to handle the spike in digital payment volumes is rapidly increasing. Furthermore, given the quick speed of innovation in the digital economy, having a solid payment infrastructure is critical for digital commerce enterprises.
To know more about global payment gateway market opportunities, get in touch with our analysts here.
Payment Gateway Market
Enterprise size: Research Dive Analysis
The hosted sub-segment is anticipated to have a dominant market share and generate a revenue of $38,088.6 million by 2028, growing from $11,221.6 million in 2020. A third-party checkout system that directs clients to the payment service provider's (PSP) website is known as a hosted payment gateway. As utilities look for solutions to enable the continued usage of dependable online billing and payments, hosted payment gateways will remain a popular choice.
The non-hosted sub-segment is anticipated to have the fastest growth and generate a revenue of $29,345.8 million by 2028, growing from $8,028.4 million in 2020, with the healthy CAGR of 17.2%. Non-hosted works is a type of integrated payment gateway in which no third parties are engaged in the payment checkout process. Integrated gateways let businesses achieve PCI DSS compliance, which means they are in control of storing, securing, and verifying each transaction. Installing a payment gateway solution on the merchant's website does this. A non-hosted payment gateway allows customers to enter their payment details without having to leave the website they are on.
Payment Gateway Market
By Enterprise Size
Enterprise size: Research Dive Analysis
The large enterprise sub-segment of the global payment gateway market is anticipated to have a dominant market share and surpass $43,389.9 million by 2028, with an increase from $12,574.2 million in 2020. Due to the growing predisposition of the people towards online purchase, huge enterprises such as ecommerce businesses play a crucial role in the transaction. Payment gateways are a type of payment platform that accepts a variety of payment methods, manages the risks connected with those payments, processes them through appropriate channels, and provides tracking and information to both the financial institution and the business customer. The enterprise gateway payments platform enables financial institutions to simplify their payments infrastructure and execute a successful payments strategy on a single, integrated, and real-time platform. The increased adoption of digital transaction techniques and payment processing by large-scale firms to collect money from their customers is driving up demand for payment gateways in the large enterprise industry and creating the payment gateway market opportunity for growth.
The small & medium enterprise (SME) sub-segment of the global payment gateway market is anticipated to have the fastest growth and surpass $24,044.5 million by 2028, with an increase from $6,675.8 million in 2020, with highest CAGR of 17.0%. SMEB firms are recognizing the necessity of ecommerce merchants due to the increased complexity and sophistication of ecommerce. The variety of payment options available for a wide range of businesses, from restaurants to beauty salons to transportation companies to professional services helps in boosting the sub-segment’s growth. These startups, small businesses, and corporations can use the payment gateway platform to fulfil their transaction demands. Individuals can also make payments via the internet.
Payment Gateway Market
By End Use
Enterprise size: Research Dive Analysis
The BFSI sub-segment of the global payment gateway market is anticipated to have a dominant market share and surpass $22,014.5 million by 2028, with an increase from $6,483.5 million in 2020. The financial services industry (BFSI) is a leader in the adoption of new technology. It has spent the last few years focusing on strengthening its offerings and enhancing the client experience. Financial institutions have benefited from the development of payment gateways in a variety of ways. Financial organizations can offer differentiated payment services to potential clients through digital payment platforms. As a result, prominent financial institutions throughout the world have introduced mobile and online applications to conduct seamless financial transactions, which is one of the growth drivers.
The travel & hospitality sub-segment of the global payment gateway market is anticipated to have the fastest growth and surpass $12,412.3 million by 2028, with an increase from $3,363.6 million in 2020, with the CAGR 17.3%. The essential aspects of the hospitality & travel sub-segment of the payment gateway industry, such as faster and safer, digital contactless payment methods are largely responsible for its rise. It also benefits the industries that are involved, such as air transportation, lodging, and food services, as well as drinking establishments, car rentals, and travel agencies. Acquiring, gateway processing, reporting, and intelligence are all part of the hospitality payment services. In both travel & hospitality, technology is improving and transforming customers' experiences. Several technologies are resulting in significant cost reductions and benefitting the hotel business. As global per capita income has risen and consumer sentiment has improved, the number of overseas visitors has increased.
Payment Gateway Market
Enterprise size: Research Dive Analysis
The Market for Payment Gateway in Asia-Pacific to be the Most Dominant and the Most Lucrative
The Asia-Pacific payment gateway market accounted $6,951.2 million in 2020 and is projected to register a revenue of $25,652.0 million by 2028. This increase can be attributed to a number of government initiatives targeted at enhancing the online payment infrastructure of the Asia-Pacific region's diverse countries. The Reserve Bank of India (RBI), for example, has regulated a number of gateways to allow for effective digital payments in India. Furthermore, the Chinese government is focusing its efforts on improving internet connectivity in rural areas, resulting in enhanced market growth potential for online payment gateways in this region. The large population in this region, which adds to the volume of transactions, as well as the domestic and international payment gateway providers investing in this region are the driving forces behind market expansion in this region.
Competitive Scenario in the Global Payment Gateway Market
Product advancements, innovations, and business expansion are common strategies followed by major market players.
Enterprise size: Research Dive Analysis
Some of the leading payment gateway market players are PayPal Holdings, Inc., STRIPE, Visa Inc., Amazon.com Inc., FIS(Worldpay), Mastercard, PayU, BitPay, Inc., FISERV, INC.(BluePay), JPMorgan Chase & Co.
Porter’s Five Forces Analysis for the Global Payment Gateway Market:
- Bargaining Power of Suppliers: There are many suppliers in the payment gateway market. Also, there is high demand for payment gateway from various countries in order to reduce the transaction complexity.
Thus, the bargaining power suppliers is low.
- Bargaining Power of Buyers: Buyers have high bargaining power owing to the high adoption of the advanced technologies in the transaction and payment processing.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: The companies entering payment gateway market have to deal with the advanced options available from all the major players.
Thus, the threat of the new entrants is low.
- Threat of Substitutes: The threat of the substitutes is high due to the entrance of players with the technological upgraded platform with lower cost solution.
Thus, the threat of substitutes is high.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is low mainly because the number of players operating in payment gateway industry are focusing on enhancing the efficiency of the platform, business expansion, and product innovations.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Type
Segmentation by Enterprise size
Segmentation by End-use
Key Companies Profiled
Q1. What is the size of the global payment gateway market?
A. The size of the global payment gateway market was over $19,250.0 million in 2020 and is projected to reach $67,434.4 million by 2028.
Q2. Which are the major companies in the payment gateway market?
A. PAYPAL HOLDINGS INC., STRIPE, , and Amazon.com Inc. are some of the major companies operating in the global payment gateway market.
Q3. Which region possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific Payment gateway Market?
A. The growth rate of the Asia-Pacific payment gateway market is 17.3%.
Q5. What are the strategies opted by the leading players in this market?
A. Product innovations, technological advancements, and business expansions are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. PAYPAL HOLDINGS INC., STRIPE, and Amazon.com Inc. are investing more on R&D practices.
Q7. Which is best payment gateway?
A. Paypal’s payflow gateway is considered as one of the most popular payment gateway across existing payment gateway platforms.
Q8. What are the different types of payment gateways?
A. There are two main types of gateways namely hosted and non-hosted payment gateways.
Q9. What is the payment gateway market growth?
A. The payment gateway market growth for forecast period 2021-2028 is estimated at 16.6%.
Q10. What is the cheapest payment gateway?
A. Cash free Payment gateway is one of the cheapest payment gateways.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.By Type trends
2.3.By Enterprise size trends
2.4.By End Use trends
2.5.By End Use trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.5.Enterprise size landscape
3.8.2.By Enterprise size
3.8.3.By End Use
3.9.Market value chain analysis
3.9.1.Stress point analysis
3.9.2.Raw material analysis
3.9.4.Distribution channel analysis
18.104.22.168.Raw material suppliers
4.Payment Gateway Market, by Type
4.1.1.Market size and forecast, by region, 2020-2028
4.1.2.Comparative market share analysis, 2020 & 2028
4.2.1.Market size and forecast, by region, 2020-2028
4.2.2.Comparative market share analysis, 2020 & 2028
5.Payment Gateway Market, by Enterprise size
5.1.1.Market size and forecast, by region, 2020-2028
5.1.2.Comparative market share analysis, 2020 & 2028
5.2.Small and Medium Enterprise
5.2.1.Market size and forecast, by region, 2020-2028
5.2.2.Comparative market share analysis, 2020 & 2028
6.Payment Gateway Market, by End Use
6.1.Travel and Hospitality
6.1.1.Market size and forecast, by region, 2020-2028
6.1.2.Comparative market share analysis, 2020 & 2028
6.2.1.Market size and forecast, by region, 2020-2028
6.2.2.Comparative market share analysis, 2020 & 2028
6.3.Retail and E-commerce
6.3.1.Market size and forecast, by region, 2020-2028
6.3.2.Comparative market share analysis, 2020 & 2028
6.4.Media and Entertainment
6.4.1.Market size and forecast, by region, 2020-2028
6.4.2.Comparative market share analysis, 2020 & 2028
6.5.1.Market size and forecast, by region, 2020-2028
6.5.2.Comparative market share analysis, 2020 & 2028
7.Payment Gateway Market, by Regions
7.1.1.Market size and forecast, by Type, 2020-2028
7.1.2.Market size and forecast, by Enterprise size, 2020-2028
7.1.3.Market size and forecast, by End Use, 2020-2028
7.1.4.Market size and forecast, by country, 2020-2028
22.214.171.124.Market size and forecast, by Type, 2020-2028
126.96.36.199.Market size and forecast, by Enterprise size, 2020-2028
188.8.131.52.Market size and forecast, by End Use, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
7.2.1.Market size and forecast, by Type, 2020-2028
7.2.2.Market size and forecast, by Enterprise size, 2020-2028
7.2.3.Market size and forecast, by End Use, 2020-2028
7.2.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
7.2.10.Rest of Europe
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
7.3.1.Market size and forecast, by Type, 2020-2028
7.3.2.Market size and forecast, by Enterprise size, 2020-2028
7.3.3.Market size and forecast, by End Use, 2020-2028
7.3.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
7.3.10.Rest of Asia Pacific
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
7.4.1.Market size and forecast, by Type, 2020-2028
7.4.2.Market size and forecast, by Enterprise size, 2020-2028
7.4.3.Market size and forecast, by End Use, 2020-2028
7.4.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
126.96.36.199.Market size and forecast, by Type, 2020-2028
188.8.131.52.Market size and forecast, by Enterprise size, 2020-2028
184.108.40.206.Market size and forecast, by End Use, 2020-2028
220.127.116.11.Market size and forecast, by Type, 2020-2028
18.104.22.168.Market size and forecast, by Enterprise size, 2020-2028
22.214.171.124.Market size and forecast, by End Use, 2020-2028
8.1.PayPal Holdings, Inc.
8.1.4.Recent strategic moves & developments
8.2.4.Recent strategic moves & developments
8.3.4.Recent strategic moves & developments
8.4.4.Recent strategic moves & developments
8.5.4.Recent strategic moves & developments
8.6.4.Recent strategic moves & developments
8.7.4.Recent strategic moves & developments
8.8.4.Recent strategic moves & developments
8.9.JPMorgan Chase & Co.
8.9.4.Recent strategic moves & developments
8.10.4.Recent strategic moves & developments
The terms and techniques of payments have evolved significantly in the last two decades. With the growing adoption of digitalization, the payment sector has taken many big turns to progress. Today, about 67% millennials and 56% GenXers prefer to shop online rather than from a store, as per the Big Commerce: The 19 Ecommerce Trend. People nowadays are demanding enhanced speed, improved convenience, greater value, and most essentially quicker checkout while performing online payments. All this has been thriving the growth of digital payment gateways remarkably.
The payment gateway, which enables businesses to accept payments online from anywhere via different channels and devices, has been undergoing several developments ever since the rising implementation of digitalization. An effective and smooth payment gateway is the key solution for uninterrupted and secure online transactions. According to a report by Research Dive, the global payment gateway market is expected to garner $67,434.4 million in the 2021–2028 timeframe, growing with a CAGR of 16.6%.
What Factors are Responsible for the Payment Gateway Market’s Growth?
The global payment gateway industry is progressing at a bewildering rate. In the last year, i.e. 2020, after the outbreak of the COVID-19 pandemic, a sharp rise has been observed in the global penetration of smartphones as well as internet, offering of payment services even by non-banking organizations, consumers’ demand for one-touch payments, and many others.
A steep rise in the global ecommerce sales and enhanced internet speed are greatly fueling the growth of the payment gateway industry. In the present times, retail businesses are switching from traditional business models to modern business techniques by integrating advancement payments options, encouraging smartphone transactions, and promoting the use of online credit cards for carrying out payments. All these factors are boosting the adoption of online payment methods, which is fueling the market growth at a significant rate.
In addition, today’s consumers expect a seamless user experience in mobile wallets as their preferences are shifting towards digital payment methods. Consequently, the need for safe and consistent payment gateways to cope with the spur in the adoption of digital payments is swiftly increasing.
Recent Trends in the Payment Gateway Market
Several leading payment gateway market players such as STRIPE, Visa Inc., Amazon.com Inc., PayPal Holdings, Inc., FIS(Worldpay), Mastercard , PayU, BitPay, Inc., JPMorgan Chase & Co., and FISERV, INC.(BluePay), and others, are undertaking various activities such as new product launches, mergers & acquisitions, partnerships, etc. to obtain a leading-edge in the global market. For instance,
- In October 2020, Paytm, an Indian multinational technology firm that focuses on offering digital payment system, e-commerce, and finance, launched the same-day settlement facility for fund transfers on its payment gateway service. This new facility will aid business partners conduct money transfers at any time in their bank account on the same day of receiving payment, without the need to wait for the next day.
- In June 2021, Xpate, a company focused on enhancing the global payments using a design-centric method to serve mounting business needs, stated that the company is attempting to streamline the management of card payments by launching a new payment gateway and operational support project called, xpate Links.
- In June 2021, StoreHippo, a foremost e-commerce platform, joined hands with Paytm, the leading digital financial services platform in India, for its payment gateway business. The payment gateway by Paytm will facilitate businesses on StoreHippo with easy payment methods and help the e-commerce players to explore further into the untapped markets in India. With this collaboration, StoreHippo will be able to provide its client's a stress-free, flexible, and safe payment gateway all over India.
COVID-19 Impact on the Payment Gateway Market
The payment gateway market has been significantly elevated with the outbreak of the COVID-19 pandemic in 2020. Growing shift toward e-commerce, quick payments, digital payments (including contactless payments), and cash displacement has boosted the growth of the global market in the pandemic period. For instance, Amazon, a leading e-commerce platform, observed around 40% year-over-year growth in the 2nd quarter of 2020, owing to the sudden boom in the grocery sales. Moreover, integration of advanced technologies in payment gateways are likely to deliver more advanced and reliable payment platforms and solutions, which might bring in several growth opportunities for the growth of the global market in the upcoming years.