Global Payment Gateway Market Segmentation By Type (Hosted, Non-hosted), By Enterprise Size (Large Enterprises, SMEs), By End Use (BFSI, Media and Entertainment, Retail and E-commerce, Travel and Hospitality, and Others), And Region - Forecast 2024 to 2029

Updated On: January, 2024
ID: 10175
Pages: 150

Global Payment Gateway Market Size (2021 – 2026)

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:

  • 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.
  • 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.
  • April 2019: Stripe completed about 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.

Impact of Covid-19 on Payment Gateway Market:

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

  • The payment gateway market evolves according to consumer behaviour. The driving need for cashless economy, rise in mobile banking and instant payments, digital commerce, and the initiatives by regulatory agencies 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 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, India-based company PayU is considered as 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 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.

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.




Market Size Available

2020– 2026

Base Year


Forecast Period

2022 - 2027



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:

Global Payment Gateway Market – By Type:

  • Hosted
  • Non-Hosted.

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.

Global Payment Gateway Market – By Company Size:

  • Large Enterprises
  • Small Enterprises
  • Medium-sized Enterprises (SMEs).

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.

Global Payment Gateway Market – By End-Users:

  • BFSI
  • Media and Entertainment
  • Retail and E-commerce
  • Travel and Hospitality
  • Others.

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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