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, Media & Entertainment, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2030

IC : Software and Services

RA08495

Pages: 240

Jun 2022

Payment Gateway Market Analysis

The global payment gateway market is estimated to be valued at $98,198.70 million by 2030, surging from $22,426.30 million in 2021, at a noteworthy CAGR of 17.7%.

Market Synopsis

Digital payments are becoming a more common mode of money transaction, and this mode is 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. As more people are opting for online and digital payment methods, they require to post their account details on the payment portal. With this, many cyber criminals and naughty elements in the society can hack their accounts and misuse them. Such factors are responsible for impeding market growth in the next few years.

According to the regional analysis of the market, the Asia-Pacific market is expected to significantly grow during the review period.

Payment Gateway Overview

A payment gateway 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 technology is advancing fast, the demand for quick and hassle free money transaction among people has increased. They now prefer to use digital transaction mode for payments. Payment gateways are constantly changing to match new consumer preferences and technological advancements.

Impact Analysis of COVID-19 on the Global Payment Gateway Market

COVID-19 has triggered a global public health disaster that has damaged 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 greatly strengthened in the past years 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 e-commerce sales and improved internet speeds are expected to promote the growth of the payment gateway 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 solutions, 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 e-commerce 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 & 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

Lack of 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 to Provide 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.

Global Payment Gateway Market, by Type

Based on type, the market has been divided into hosted and non hosted. Hosted sub-segment accounted for the highest revenue share in 2021, and non-hosted sub-segment is predicted to show the fastest growth during the forecast period.