The global payment gateways market size was valued at USD 15.98 billion in 2020 and is anticipated to develop with a compound annual growth rate (CAGR) of 21.5% from 2020 to 2025.
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.
Recent Developments:
The COVID-19 outbreak is fueling growth in global e-commerce sales, with millions of quarantined consumers around the world 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.
Market Growth and Trends:
Retail segment expected to experience significant growth in this market in future
Market Drivers and Limitations:
The main factor driving the market for payment gateways is the significant expansion of small businesses in developing countries to provide customers with online services. 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.
REPORT METRIC |
DETAILS |
Market Size Available |
2020– 2026 |
Base Year |
2020 |
Forecast Period |
2022 - 2027 |
CAGR |
21.5% |
Segments Covered |
By Type, Company Size, End Users, and Region |
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 |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
PayU, PayPal Holdings, Stripe, Inc., Adyen N.V., Inc., Amazon Pay, Square, Inc and Others. |
Global Payment Gateway Market Segmentation:
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.
The retail and e-commerce segment is expected to continue to dominate during the forecast period due to the increasing number of online transactions.
Regional Analysis:
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.
Key market players:
Some of the major players in the market are PayU, PayPal Holdings, Stripe, Inc., Adyen N.V., Inc., Amazon Pay, Square, Inc., etc.
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