Payment Gateway Market size is set to surpass USD 60 billion by 2027, according to a new research report by Global Market Insights Inc.
Rising demand for online payments is likely to boost the industry growth. The growing smartphone penetration across the world is enabling users to adopt cashless payment systems such as mobile wallets and Unified Payments Interface (UPI). The payment gateways are playing an important role in the secure online transaction between businesses and users. It encrypts the customer’s banking credentials, such as e-banking username, password, debit and credit card details, to ensure that this information is passed securely from the customer to the bank via the merchant.
The ability of providing greater merchant control over customer data is supporting the non-hosted payment gateways demand
Non-hosted payment gateway market is expected to observe 15% CAGR through 2027 due to its capability of providing greater control over the consumer’s data to the merchants. In non-hosted gateway, the payment transaction is completed on the merchant’s website without directing to another page for completing the transaction. It helps the merchants to improve their customer experience as the buyers are directly dealing with merchants for payment processing. It also allows businesses to track the customer data to use in future marketing efforts to improve their business profitability.
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Browse key industry insights spread across 250 pages with 259 market data tables and 35 figures & charts from the report, “Payment Gateway Market Size By Type (Hosted, Non-Hosted, Local Bank Integrated), By Organization Size (SME, Large Enterprises), By Application (Travel and Hospitality, Retail & E-commerce, Media & Entertainment, Healthcare, Energy & Utilities, IT & Telecom, BFSI), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The growing market demand for secure large-volume transactions is enhancing the demand across large enterprises
The large enterprises held around 30% of the payment gateway market revenue share in 2020 on account of the rising adoption of payment gateways by large enterprises for secure high-volume transactions. The large enterprises are leveraging the industry standard encryption technology to protect the customer and merchant sensitive data during the large-volume financial transaction. The high-end encryption technology used by the payment gateways is fueling the market growth in large enterprises.
Growing digitalization across the travel and hospitality sector to foster the payment gateway market revenue
The travel & hospitality is poised to grow significantly during 2021 to 2027 owing to the increasing demand for cashless international transaction. The growing rising sector across the world is boosting the demand for secure and flexible payment solutions for international tourists. The payment gateway is helping merchants to perform transactions from international debit and credit cards in a more secure way.
The digitalization and rising number of internet users across Asia Pacific are driving the market demand
Asia Pacific payment gateway market size is set to generate over USD 15 billion by 2027 led by supportive government initiatives for online payment infrastructure in major countries such as China, India, and Japan. For instance, the National Payments Corporation of India (NPCI) is offering the payments and settlement systems for creating the robust digital payment infrastructure in India. This authority is formed by the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the Payment and Settlement Systems Act, 2007.
The increasing number of smartphone users in the region is also fueling the market demand. The smartphone users are using various digital banking apps and digital wallets for online transactions. These apps and digital wallets are reducing the long queues at retailer desks. The rising internet penetration in rural areas in the region is also spurring the adoption of digital payment solutions.
Focus on strategic acquisition is the key strategy adopted by the leading industry players
The companies are focusing on strategic acquisitions to strengthen their digital payment businesses. For instance, in January 2020, PayU acquired PaySense, an India-based digital credit platform, for USD 185 million. This acquisition helped the company to strengthen its credit business in India.
Some of the key payment gateway market players are 2Checkout.com, Inc. Adyen N.V., Allied Wallet, Inc., Amazon.com. Inc., Authorize.Net, Bitpay, Inc., BluePay (Clover), BlueSnap Inc., Braintree, CardStream Limited, Dwolla, Inc., Payline Data Services LLC, Payoneer Inc., PayPal Holdings Inc., PayU Group, SecurionPay (Online Payments Group Ltd), Skrill Limited, Square, Inc., Stripe, Verifone Holdings Inc., Wepay, Inc., and Worldpay, Inc.
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