Payment Processing Solutions Market Report
RA00416
Payment Processing Solutions Market, by Payment Method (E wallet, Credit card, Debit card, Automatic clearing house and Others), Deployment Method (Cloud and On Premises), Vertical (BFSI, Government, IT and telecom, Healthcare, Real Estate, Retail and Others), Regional Outlook (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027
Payment processing solutions market accounted for $65,710.5 million in 2019 and is predicted to grow at a CAGR of 12.6% in the forecast period by generating a revenue of $176,749.5 million by 2027. Asia-Pacific market accounted for $21,158.8 million in 2019 and is predicted to rise with a CAGR of 13.5% in the forecast period. Increase in the adoption of smart phones with the use of payment processing solutions is predicted to drive the market in the estimated period.
Payment Processing Solutions Market Synopsis
The market for payment processing solutions is primarily driven by continuous advancements in digital technology and the rapid growth in E-commerce business across the globe.
The main restraining factor of the payment processing solutions market is the evolving cyber-attacks that enormously affects the business.
According to the regional outlook, the Asia-Pacific market for payment processing solutions accounted for $21,158.8 million in 2019 and is anticipated to grow at a CAGR of 13.5% during the review period.
Market Analysis
Payment processing solution acts as a mediator between user and a merchant with the bank involved in the transaction. Payment processing is one of the most important tasks for every business. Online transaction has become the most convenient way of payment for organisations. In simple words, the payment processing solutions act as a bridge while purchasing products and services using debit or credit card, handling the transaction and relaying information to the bank.
COVID-19 Impact on Payment Processing Solutions Market
The pandemic has impacted the payment processing solutions market in a positive way. The pandemic and fear of coronavirus has made people across the globe adopt digital payment services which is predicted to be the major driving factor for the market. E-commerce platforms, especially websites that deliver groceries have seen a rise in the orders for essential goods, and retail stores have increased online payment. Most of the people stay at home and order food through various online platforms and make payment online with various sources, which is predicted to boost the global payment processing solution market in a positive manner at the time of the pandemic.
Increase in the adoption of payment processing application in smart phones is predicted to be the major driving factor for the global payment processing solutions market
The payment industry is evolving at a faster rate. These applications make the payment safer, offer least pay out time and handle payments across currencies, platforms and regions. Most of the organisations, retail shops, and ecommerce sites have adopted digital payment options for faster and secured transactions. Moreover, rise in ecommerce business is considered to be the one of the major driving factors for the global payment processing solution market in the estimated period.
Increasing cases of cybercrime is predicted to be the biggest restraint for the market
Increasing cases of cybercrime across the globe is predicted to be the biggest restraint for the market in the estimated period. Payment processing solution deals with the customers’ financial data and transactions. The evolving cyber-attacks affect the business enormously, which is a big concern for the market. For instance, the cyberattack threat has evolved to such an extent that by using a mobile one can even break into payment systems of cardholders without even warning the user. This is the biggest restraint for the market.
Increasing use of mobile devices with advancement in digital technology and internet facility is predicted to create more growth opportunities in the market
Internet of payment has become a trend driven by various applications in the payment sector which means in the coming period, all the devices will become a platforms for purchasing goods and services which is predicted to create more growth opportunity for the global payment processing solution market in the estimated period.
Payment Processing Solutions Market, by Payment Method:
Source: Research Dive Analysis
Debit card payment method sub-segment shall have the highest market share in the estimated period. Debit card payment method sub-segment accounted for $21,187.1 million in 2019 and is predicted to grow with a CAGR of 12.5% in the estimated period. Debit cards are mostly used by the user as they don’t have any services charges like credit card and offer faster payment with no interest charges, which is predicted to drive the sub-segment market in the forecast period
Payment Processing Solutions Market, by Deployment Mode:
Source: Research Dive Analysis
Cloud deployment mode sub-segment is predicted to have the highest market growth in the estimated period. Cloud deployment mode sub-segment accounted for $23,495.9 million in 2019 and is predicted to grow with a CAGR of 13.3% in the estimated period. With the help of cloud, most of the confidential data of the customers are saved. Cloud services offer transparent transactions in digital payment in terms of security, which is predicted to drive the sub segment market in the forecast period.
Payment Processing Solutions Market, by Vertical:
Source: Research Dive Analysis
BFSI is predicted to dominate the global market share by 2027. BFSI accounted for $14,775.9 million in 2019 and is predicted to grow with a CAGR of 12.8% in the estimated period. Introduction of digital payment in various financial institutions to make the payment faster and in a most convenient manner is predicted to drive the BFSI sub-segment market in the estimated period. Moreover, adoption of advanced technologies in web as well as in mobile application is predicted to be the biggest driving factor for the BFSI sub-segment market in the forecast period.
Payment Processing Solutions Market, by Region:
North America region market is predicted to create more investments opportunities for in the estimated timeframe
Asia-Pacific market accounted for $21,158.8 million in 2019 and is predicted to rise with a CAGR of 13.5% in the forecast period. Government initiatives for increased use of digital payment across the region is predicted to boost the payment processing market in the Asia-Pacific region in the estimated period. In addition, adoption of advanced payment processing solution in various government institutions across the region is predicted to drive the region market in the estimated period. For instance, in Oct 2020, SBI will provide paperless instant overdraft facility to retailers to enable payments to distributors and UPI-based solutions to HUL's retailers to assist with cashless payments
Key Participants in the Payment Processing Solutions Market
Source: Research Dive Analysis
The major key players in the global payment processing solutions market are PayPal, Fiserv, Inc., Global Payments, Inc., FIS, Mastercard, VISA, Inc., ACI Worldwide, Inc., PaySafe, Dwolla, Inc., and Wirecard among others. For Instance, in March 2020 Paysafe announced an expanded strategic partnership with Mastercard which includes issuing solutions, including its Skrill Prepaid Mastercard and NETELLER Net+ Prepaid Mastercard.
Porter’s Five Forces Analysis for Payment Processing Solutions Market:
- Bargaining Power of Suppliers: There are fewer number of suppliers in the market which make the consumer the switching cost expensive
The bargaining power of suppliers is very High.
- Bargaining Power of Consumers: In this market, the concentration of buyers is very high the users available in the market are many.
The bargaining power of consumers is High.
- Threat of New Entrants: Huge initial investments are essential to start a new software for payment solution due to which it is difficult for the new entrants to enter the market.
The threat of new entrants is Low.
- Threat of Substitutes: The market has larger number of substitute product and the exiting player update the existing software and application.
The threat of substitutes is High.
- Competitive Rivalry in the Market: The payment processing solution market has only major players to sell their products and it becomes difficult for small and medium enterprises and local manufacturers to get into the market. The competitive rivalry in the industry is Moderate.
| Aspect | Particulars |
| Historical Market Estimations | 2019-2020 |
| Base Year for Market Estimation | 2019 |
| Forecast timeline for Market Projection | 2019-2027 |
| Geographical Scope | North America, Europe, Asia-Pacific, LAMEA |
| Segmentation by Payment Method |
|
| Segmentation by Deployment Mode |
|
| Segmentation by Vertical |
|
| Key Countries Covered | U.S., Canada, Mexico, Germany, France, UK, Italy, Spain, Russia, Rest of Europe, China, Japan, India, Australia, South Korea, Latin America, Middle East, Africa |
| Key Companies Profiled |
|
Q1. What is the size of payment processing solution market?
A. The global payment processing solution market size was over $ 65,710.5 million in 2019 and is predicted to grow with a CAGR of 12.6% over the forecast period.
Q2. Which are the leading companies in the payment processing solution market?
A. PaySafe and Mastercard are the key players in the global payment processing solution market.
Q3. Which region possesses greater investment opportunities in the coming future?
A. Asia-Pacific region possesses great investment opportunities for the investors to witness the most promising growth in the coming years.
Q4. What is the growth rate of North America?
A. Asia-Pacific payment processing solution market is projected to grow at 13.5% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Product development is the key strategies opted by the operating companies in this Payment Processing Solution Market.
Q6. Which companies are investing more on R&D practices?
A. Mastercard is the company investing more on R&D activities for developing new products and technologies.
1. Research Methodology
1.1. Desk Research
1.2. Real time insights and validation
1.3. Forecast model
1.4. Assumptions and forecast parameters
1.4.1. Assumptions
1.4.2. Forecast parameters
1.5. Data sources
1.5.1. Primary
1.5.2. Secondary
2. Executive Summary
2.1. 360° summary
2.2. Payment Method trends
2.3. Deployment Mode trends
2.4. Vertical trends
3. Market Overview
3.1. Market segmentation & definitions
3.2. Key takeaways
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
3.4. Market dynamics
3.4.1. Drivers
3.4.2. Restraints
3.4.3. Opportunities
3.5. Technology landscape
3.6. Regulatory landscape
3.7. Patent landscape
3.8. Pricing overview
3.8.1. By Payment Method
3.8.2. By Deployment Mode
3.8.3. By vertical
3.8.4. By region
3.9. Market value chain analysis
3.9.1. Stress point analysis
3.9.2. Raw material analysis
3.9.3. Manufacturing process
3.9.4. Distribution channel analysis
3.9.5. Operating vendors
3.9.5.1. Raw material suppliers
3.9.5.2. Product manufacturers
3.9.5.3. Product distributors
3.10. Strategic overview
4. Payment Processing Solutions Market, by Payment Method
4.1. E wallet
4.1.1. Market size and forecast, by region, 2019-2027
4.1.2. Comparative market share analysis, 2019-2027
4.2. Credit Card
4.2.1. Market size and forecast, by region, 2019-2027
4.2.2. Comparative market share analysis, 2019-2027
4.3. Credit Card
4.3.1. Market size and forecast, by region, 2019-2027
4.3.2. Comparative market share analysis, 2019-2027
4.4. Debit Card
4.4.1. Market size and forecast, by region, 2019-2027
4.4.2. Comparative market share analysis, 2019-2027
4.5. Automatic Clearing Machine
4.5.1. Market size and forecast, by region, 2019-2027
4.5.2. Comparative market share analysis, 2019-2027
4.6. Others
4.6.1. Market size and forecast, by region, 2019-2027
4.6.2. Comparative market share analysis, 2019-2027
5. Payment Processing Solutions Market, by Deployment Mode
5.1. Cloud
5.1.1. Market size and forecast, by region, 2019-2027
5.1.2. Comparative market share analysis, 2019-2027
5.2. On-Premises
5.2.1. Market size and forecast, by region, 2019-2027
5.2.2. Comparative market share analysis, 2019-2027
6. Payment Processing Solutions Market, by Vertical
6.1. BFSI
6.1.1. Market size and forecast, by region, 2019-2027
6.1.2. Comparative market share analysis, 2019-2027
6.2. Government
6.2.1. Market size and forecast, by region, 2019-2027
6.2.2. Comparative market share analysis, 2019-2027
6.3. IT & Telecom
6.3.1. Market size and forecast, by region, 2019-2027
6.3.2. Comparative market share analysis, 2019-2027
6.4. Healthcare
6.4.1. Market size and forecast, by region, 2019-2027
6.4.2. Comparative market share analysis, 2019-2027
6.5. Real Estate
6.5.1. Market size and forecast, by region, 2019-2027
6.5.2. Comparative market share analysis, 2019-2027
6.6. Retail
6.6.1. Market size and forecast, by region, 2019-2027
6.6.2. Comparative market share analysis, 2019-2027
6.6.3.
6.7. Others
6.7.1. Market size and forecast, by region, 2019-2027
6.7.2. Comparative market share analysis, 2019-2027
7. Payment Processing Solutions Market, by Region
7.1. North Region
7.1.1. Market size and forecast, by Payment Method, 2019-2027
7.1.2. Market size and forecast, by Deployment Mode, 2019-2027
7.1.3. Market size and forecast, by Vertical, 2019-2027
7.1.4. Market size and forecast, by country, 2019-2027
7.1.5. Comparative market share analysis, 2019-2027
7.1.6. U.S
7.1.7. Market size and forecast, by Payment Method, 2019-2027
7.1.8. Market size and forecast, by Deployment Mode, 2019-2027
7.1.9. Market size and forecast, by Vertical, 2019-2027
7.1.10. Canada
7.1.11. Market size and forecast, by Payment Method, 2019-2027
7.1.12. Market size and forecast, by Deployment Mode, 2019-2027
7.1.13.
7.1.14. Market size and forecast, by Vertical, 2019-2027
7.2. Europe
7.2.1. Market size and forecast, by Payment Method, 2019-2027
7.2.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.3. Market size and forecast, by Vertical, 2019-2027
7.2.4. Market size and forecast, by country, 2019-2027
7.2.5. Comparative market share analysis, 2019-2027
7.2.6. UK
7.2.6.1. Market size and forecast, by Payment Method, 2019-2027
7.2.6.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.6.3. Market size and forecast, by Vertical, 2019-2027
7.2.6.4. Comparative market share analysis, 2019-2027
7.2.7. Germany
7.2.7.1. Market size and forecast, by Payment Method, 2019-2027
7.2.7.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.7.3. Market size and forecast, by Vertical, 2019-2027
7.2.7.4. Comparative market share analysis, 2019-2027
7.2.8. France
7.2.8.1. Market size and forecast, by Payment Method, 2019-2027
7.2.8.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.8.3. Market size and forecast, by Vertical, 2019-2027
7.2.8.4. Comparative market share analysis, 2019-2027
7.2.9. Italy
7.2.9.1. Market size and forecast, by Payment Method, 2019-2027
7.2.9.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.9.3. Market size and forecast, by Vertical, 2019-2027
7.2.9.4. Comparative market share analysis, 2019-2027
7.2.10. Rest of Europe
7.2.10.1. Market size and forecast, by Payment Method, 2019-2027
7.2.10.2. Market size and forecast, by Deployment Mode, 2019-2027
7.2.10.3. Market size and forecast, by Vertical, 2019-2027
7.2.10.4. Comparative market share analysis, 2019-2027
7.3. Asia-Pacific
7.3.1. Market size and forecast, by Payment Method, 2019-2027
7.3.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.3. Market size and forecast, by Vertical, 2019-2027
7.3.4. Market size and forecast, by country, 2019-2027
7.3.5. Comparative market share analysis, 2019-2027
7.3.6. China
7.3.7. Market size and forecast, by Payment Method, 2019-2027
7.3.8. Market size and forecast, by Deployment Mode, 2019-2027
7.3.9. Market size and forecast, by Vertical, 2019-2027
7.3.10. Comparative market share analysis, 2019-2027
7.3.11. India
7.3.11.1. Market size and forecast, by Payment Method, 2019-2027
7.3.11.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.11.3. Market size and forecast, by Vertical, 2019-2027
7.3.11.4. Comparative market share analysis, 2019-2027
7.3.12. Japan
7.3.12.1. Market size and forecast, by Payment Method, 2019-2027
7.3.12.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.12.3. Market size and forecast, by Vertical, 2019-2027
7.3.12.4. Comparative market share analysis, 2019-2027
7.3.13. South Kore
7.3.13.1. Market size and forecast, by Payment Method, 2019-2027
7.3.13.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.13.3. Market size and forecast, by Vertical, 2019-2027
7.3.13.4. Comparative market share analysis, 2019-2027
7.3.14. Australia
7.3.14.1. Market size and forecast, by Payment Method, 2019-2027
7.3.14.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.14.3. Market size and forecast, by Vertical, 2019-2027
7.3.14.4. Comparative market share analysis, 2019-2027
7.3.15. Rest of Asia Pacific
7.3.15.1. Market size and forecast, by Payment Method, 2019-2027
7.3.15.2. Market size and forecast, by Deployment Mode, 2019-2027
7.3.15.3. Market size and forecast, by Vertical, 2019-2027
7.3.15.4. Comparative market share analysis, 2019-2027
7.4. LAMEA
7.4.1. Market size and forecast, by Payment Method, 2019-2027
7.4.2. Market size and forecast, by Deployment Mode, 2019-2027
7.4.3. Market size and forecast, by Vertical, 2019-2027
7.4.4. Market size and forecast, by country, 2019-2027
7.4.5. Comparative market share analysis, 2019-2027
7.4.6. Latin America
7.4.6.1. Market size and forecast, by Payment Method, 2019-2027
7.4.6.2. Market size and forecast, by Deployment Mode, 2019-2027
7.4.6.3. Market size and forecast, by Vertical, 2019-2027
7.4.6.4. Comparative market share analysis, 2019-2027
7.4.7. Middle East
7.4.7.1. Market size and forecast, by Payment Method, 2019-2027
7.4.7.2. Market size and forecast, by Deployment Mode, 2019-2027
7.4.7.3. Market size and forecast, by Vertical, 2019-2027
7.4.7.4. Comparative market share analysis, 2019-2027
7.4.8. Africa
7.4.8.1. Market size and forecast, by Payment Method, 2019-2027
7.4.8.2. Market size and forecast, by Deployment Mode, 2019-2027
7.4.8.3. Market size and forecast, by Vertical, 2019-2027
7.4.8.4. Comparative market share analysis, 2019-2027
8. Company Profiles
8.1. PayPal
8.1.1. Business overview
8.1.2. Financial performance
8.1.3. Product portfolio
8.1.4. Recent strategic moves & developments
8.1.5. SWOT analysis
8.2. Fiserv, Inc.,
8.2.1. Business overview
8.2.2. Financial performance
8.2.3. Product portfolio
8.2.4. Recent strategic moves & developments
8.2.5. SWOT analysis
8.3. Global Payments, Inc.,
8.3.1. Business overview
8.3.2. Financial performance
8.3.3. Product portfolio
8.3.4. Recent strategic moves & developments
8.3.5. SWOT analysis
8.4. FIS
8.4.1. Business overview
8.4.2. Financial performance
8.4.3. Product portfolio
8.4.4. Recent strategic moves & developments
8.4.5. SWOT analysis
8.5. MasterCard
8.5.1. Business overview
8.5.2. Financial performance
8.5.3. Product portfolio
8.5.4. Recent strategic moves & developments
8.5.5. SWOT analysis
8.6. VISA, Inc
8.6.1. Business overview
8.6.2. Financial performance
8.6.3. Product portfolio
8.6.4. Recent strategic moves & developments
8.6.5. SWOT analysis
8.7. ACI Worldwide, Inc
8.7.1. Business overview
8.7.2. Financial performance
8.7.3. Product portfolio
8.7.4. Recent strategic moves & developments
8.7.5. SWOT analysis
8.8. Paysafe
8.8.1. Business overview
8.8.2. Financial performance
8.8.3. Product portfolio
8.8.4. Recent strategic moves & developments
8.8.5. SWOT analysis
8.9. Dwolla, Inc
8.9.1. Business overview
8.9.2. Financial performance
8.9.3. Product portfolio
8.9.4. Recent strategic moves & developments
8.9.5. SWOT analysis
8.10. Wirecard
8.10.1. Business overview
8.10.2. Financial performance
8.10.3. Product portfolio
8.10.4. Recent strategic moves & developments
8.10.5. SWOT analysis
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.
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