The global payment gateways market is predicted to be valued at USD 34.82 billion in 2024 and is anticipated to reach USD 92.20 billion by 2029, growing at a CAGR of 21.5% during the forecast period.
Emerging technologies such as the Internet of Things (IoT) and artificial intelligence can perform a specific set of tasks and automate the entire transaction process. For example, artificial intelligence can be used to gain better insight into reviews and analytics on payment gateways. Therefore, the business can save time and human knowledge and generate user information to help the business understand the payment model and introduce new functions. In addition, various companies are trying to enter the market with the increasing volume of online and mobile payments around the world.
The payments industry continues to grow and evolve, with digital payments and growing transaction volumes around the world. Increased competition between established providers of open and closed payment platforms is expected to intensify in 2020 as they compete for a greater share of the payments industry. The scope of the study for the Payment Gateway Market takes into account both types of hosted and non-hosted payment gateways for different types of businesses and their respective applications in a wide range of industries globally.
The payment gateway market evolves according to consumer behavior. The driving need for a cashless economy, the rise in mobile banking and instant payments, digital commerce, and regulatory agency initiatives are a few trends affecting the retail sector. Online payments make the payment process easier and more convenient for consumers, who benefit from shorter lines, elimination of free cash flow issues, and faster queues.
Clearly, retail stores and services around the world are rapidly adopting and have integrated mobile payment applications, such as PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay, to accept payments. Also, because of the changing consumer lifestyles and the rapid progressions in online retail, they are determined to drive this business over the prediction period. The growing demand for online retail around the world is expected to drive online payment, thus boosting the payment gateway market during the forecast period.
For example, the India-based company PayU is considered one of the simplest e-commerce payment solutions designed to fill the gaps left by complex service providers. PayU is favored by the best conversion rates it offers. Market giants like Netflix, Airbnb, and Bookmyshow integrated the PayU payment gateway. In June 2020, FSS (Financial Software and Systems), a global digital payment technology and payment processor based in India, announced that it was upgrading its payment gateway for e-commerce. The portal is equipped with value-added service capabilities, so more merchants are online. These initiatives are expected to drive market growth.
Another factor driving the global payment gateway market is the growing popularity of mobile commerce. Attractive online auctions, quick property comparison, full-time availability, and easy access are some of the main reasons that have increased the rate of online purchases in order to facilitate buying and selling. The payment gateway is essential; this fact will cause the growth of the market in the coming years. The factor slowing the growth of the market is a lack of trust, while online payments will prevent consumers from making such payments.
The COVID-19 outbreak is fueling growth in global e-commerce sales, with millions of quarantined consumers worldwide purchasing goods, services, and entertainment online. According to an ACI Worldwide study of hundreds of online retail transactions around the world, transaction volumes in most retail sectors increased by 74% in March 2020, compared to the same period last year, which acted as a positive growth factor of the payment gateway market.
Since the shutdown, e-commerce sales have increased, especially of groceries and health products, although many retailers are struggling with logistics. For example, in the UK, online retail order volumes have increased by more than 200% on some products since the COVID-19 outbreak.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
21.5% |
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Segments Covered |
By Type, Company Size, End Users, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
PayU, PayPal Holdings, Stripe, Inc., Adyen N.V., Inc., Amazon Pay, Square, Inc., and Others. |
The hosted segment is expected to continue to dominate during the forecast period due to the various benefits these systems offer, such as high security, less business liability, and out-of-the-box payment setup. The non-hosted segment is expected to see significant growth during the outlook period. Several companies prefer full control over their payment processes, where customers can enter their debit or credit card information directly on the payment page and process payments via API.
Large companies are widely adopting payment gateways because the volume of transactions is very high in large companies. In addition, these companies need a highly secure and protected mode of transaction facilitated by these gateways.
Due to the increasing number of online transactions, the retail and e-commerce segment is expected to continue to dominate during the forecast period.
North America dominated the world payment gateway market in 2019 and is expected to maintain its position throughout the forecast period. This growth can be attributed to considerable technology developments and applications of the payment gateway in various end-use segments. Increasing customer dependency on electronic invoicing is also expected to boost the regional market. Furthermore, the great popularity of mobile commerce in this region is supposed to create growth opportunities for the market.
Some of the major players in the market are PayU, PayPal Holdings, Stripe, Inc., Adyen N.V., Inc., Amazon Pay, Square, Inc., etc.
In January 2020, PayU announces the acquisition of a majority stake in the digital credit platform PaySense. As part of the transaction, PayU consumer loan companies LazyPay and PaySense will merge their business operations to create a comprehensive digital lending platform in India.
In January 2020, PayPal Holding Inc. has partnered with UnionPay International (UPI), where the two companies will work together to accelerate the growth of their networks. As part of this agreement, PayPal is committed to supporting UPI acceptance globally, where PayPal is accepted, by giving UnionPay cardholders more options when shopping.
In April 2019, Stripe completed the purchase of Touchtech Payments, a start-up company based in Ireland that works with banks to develop and manage the verification process. This acquisition will help the company prepare for new regulations in Europe and improve the security of online transactions.
By Type
By Company Size
By End-Users
By Region
Frequently Asked Questions
Technological advancements such as artificial intelligence, machine learning, and blockchain are driving innovation in the Payment Gateway Market, enabling providers to offer advanced fraud detection, real-time transaction monitoring, and personalized payment experiences to merchants and consumers.
Some of the key challenges facing the Payment Gateway Market include cybersecurity threats, regulatory complexities across different geographies, interoperability issues, and the need to balance security with convenience in payment processes.
Payment gateway providers are expanding their global reach through strategic partnerships, acquisitions, and investments in infrastructure to facilitate cross-border transactions, offering multi-currency support, and ensuring compliance with international regulations.
The Payment Gateway Market is expected to witness continued growth driven by factors such as the increasing adoption of digital payments, the rise of mobile commerce, the proliferation of IoT devices, and ongoing advancements in payment technologies, presenting lucrative opportunities for players across the ecosystem.
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