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Third Party Payment Market - By Payment Type (Online Payments, POS Payments, Peer-to-Peer Payments), By End User (Consumer Payments, Business Payments), By Payment Method, By Industry Vertical & Forecast, 2023 – 2032

  • Report ID: GMI7014
  • Published Date: Oct 2023
  • Report Format: PDF

Third Party Payment Market Size

Third Party Payment Market was valued at USD 57.4 billion in 2022 and is estimated to register a CAGR of over 11.5% between 2023 and 2032. The rising volume of digital payments is driving the global market growth. As more consumers and businesses embrace online transactions, the demand for secure & convenient payment solutions has surged. According to the National Payment Corporation of India, in September 2023, India surpassed 10,555.69 million UPI transactions, which amounted to USD 200.91 billion. Third-party payment providers offer user-friendly platforms, ensuring seamless and safe electronic transactions. Their reliability and ease of use have made them increasingly popular, further fueling the third-party payment market expansion in response to the growing digital economy.

Third Party Payment Market

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The increased acceptance of digital payments is propelling the third-party payment market. With the growing reliance on electronic transactions, consumers and businesses are seeking secure, efficient & convenient payment solutions. Third-party payment providers offer seamless platforms, which ensure safe and easy online transactions, thereby gaining widespread adoption. This trend is fueled by the need for enhanced cybersecurity and the desire for hassle-free financial exchanges, driving the third-party payment market growth as more people embrace the digital economy.

Security concerns are paramount in the third-party payment market. With the increasing frequency & sophistication of cyber threats, ensuring the safety of user data and transactions is a significant challenge. Customers need assurance that their financial information is protected from hacking attempts and fraud. Providers must invest in cutting-edge encryption technologies, multi-factor authentication, and security updates to mitigate risks. Any breach can severely damage trust, making it imperative for companies to prioritize and invest in robust cybersecurity measures.

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of digital payments, positively impacting the third-party payment market. With social distancing measures in place, consumers and businesses turned to online transactions and contactless payments, driving the demand for secure digital payment solutions. This surge in digital transactions has boosted the growth of third-party payment providers, leading to increased market penetration. The convenience and safety of these services have become increasingly essential, further propelling the market forward.

Third Party Payment Market Trends

Mobile wallets and apps have revolutionized payment methods by allowing users to store credit/debit card information, loyalty cards, and even cryptocurrencies securely on their smartphones. These applications facilitate seamless transactions, both online and in physical stores, eliminating the need for physical cards or cash. For instance, in September 2023, MoneyGram announced plans to introduce a non-custodial digital wallet, which will provide innovative cross-border payment methods. Scheduled for a debut in the first quarter of 2024, this wallet will enable users to effortlessly transit between fiat and digital currencies, enhancing the ease of sending & receiving international payments. The widespread adoption of mobile wallets is driven by their convenience, accessibility, and the integration of various payment methods within a single, user-friendly interface.

Convenience and accessibility are pivotal drivers propelling the third-party payment market. With the widespread integration of digital payment solutions into smartphones and online platforms, consumers enjoy effortless transactions anytime, anywhere. These services eliminate the need for physical cash or traditional banking, offering seamless payment experiences. Whether for online shopping or in-store purchases, the ability to make secure & swift transactions enhances user satisfaction. The user-friendly interfaces of third-party payment apps further amplify their appeal, fostering a digital payment ecosystem that is both convenient and readily accessible to a wide audience.

Third Party Payment Market Analysis:

Third Party Payment Market Size, By End User, 2021 – 2032, (USD Billion)

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Based on end user, the market is divided into consumer payments and business payments. In 2022, the consumer payments segment held a market share of around 65% and is expected to grow significantly through 2032. The seamless nature of digital transactions is driving the growth of consumer payments in the third-party payment market. These platforms offer user-friendly interfaces, enabling effortless online and mobile transactions. For instance, in June 2023, Razorpay, a leading fintech unicorn, launched the Turbo UPI, a groundbreaking single-step payment solution for the UPI network. In partnership with the National Payments Corporation of India and the Axis Bank, Razorpay intends to simplify the payment procedure. This innovative solution enables users to make payments directly without redirection to a third-party UPI app, enhancing the payment experience during checkout. By eliminating the complexities associated with traditional banking, users can swiftly and securely make payments, enhancing their overall experience.

Third Party Payment Market Share, By Industry Vertical, 2022

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Based on industry vertical, the market is categorized into retail, hospitality, e-commerce, healthcare, BFSI, government, travel, and others. In 2022, the retail segment held a market share of 33%. Contactless payments have become a pivotal force in the retail industry. This method allows customers to make secure transactions by simply waving or tapping their contactless-enabled cards, smartphones, or wearables near a compatible reader. In the retail sector, this technology enhances convenience and safety, aligning with evolving consumer preferences. It eliminates the need for physical contact, reduces transaction time, and fosters a seamless shopping experience, making it particularly crucial during times when hygiene and efficiency are paramount.

U.S. Third Party Payment Market Size, 2021 -2032, (USD Billion)

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North America led the global third-party payment market with a major share of around 35% in 2022. Technological advancements have significantly propelled the North America third-party payment market. The region is a hotbed for innovation, witnessing continuous developments in payment technologies. These advancements include secure encryption methods, biometric authentication, blockchain integration, and artificial intelligence applications. Such cutting-edge technologies not only enhance the security of transactions but also improve the speed & efficiency of payment processing. Moreover, the development of user-friendly mobile applications and seamless integration with various platforms have made third-party payment solutions more accessible & appealing to the tech-savvy population, fostering rapid market growth.

Third Party Payment Market Share

Major players operating in the third-party payment industry are:

  • Adyen NV
  • Alipay
  • Authorize.Net (CyberSource Corporation)
  • Bit Pay
  • Block Inc.
  • Fiserv Inc.
  • Flagship Merchant Services
  • GoCardless
  • Payline Data
  • PayPal Holdings Inc
  • Stripe Inc.

PayPal Holdings Inc. and Fiserv Inc. hold a dominant share in the third-party payment market. The competitive landscape in the third-party payment market is defined by innovation for seamless payment experiences and expansion in new territories. Key players constantly introduce cutting-edge technologies and enter strategic markets, vying for dominance in this dynamic & rapidly evolving industry.

Third Party Payment Industry News

  • In February 2023, the digital payments company, PhonePe launched 'UPI international' payments. This feature enables users to make payments to foreign merchants utilizing the UPI infrastructure. The service is available in countries where UPI has been introduced including the UAE, Singapore, Mauritius, Nepal, and Bhutan.

The third party payment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Payment Type

  • Online Payments
  • POS Payments
  • Peer-to-Peer Payments

Market, By End User

  • Consumer Payments
  • Business Payments

Market, By Payment Method

  • Credit & Debit Cards
  • Net banking
  • Digital Wallets
  • Mobile Payments
  • Others

Market, By Industry Vertical

  • Retail
  • Hospitality
  • E-commerce
  • Healthcare
  • BFSI
  • Government
  • Travel
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size for third-party payment was USD 57.4 billion in 2022 and is estimated to register over 11.5% CAGR between 2023 and 2032.

The consumer payments segment held a market share of around 65% in 2022 and is expected to grow significantly by 2032 owing to the seamless nature of digital transactions.

North America third-party payment market held a revenue share of around 35% in 2022 and will grow through 2032 owing to technological advancements across the region.

Adyen NV, Alipay, Authorize.Net (CyberSource Corporation), Bit Pay, Block Inc., Fiserv Inc., Flagship Merchant Services, GoCardless, Payline Data, PayPal Holdings Inc, and Stripe Inc.

Third Party Payment Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 16
  • Tables & Figures: 354
  • Countries covered: 22
  • Pages: 240
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