Payment Processing Solutions Market size is set to cross USD 180 billion by 2028, according to a new research report by Global Market Insights Inc.
Rising smartphone penetration and surging adoption of digital banking services will drive the payment processing solutions industry growth. The increasing smartphone penetration allows consumers to settle their bills and payments quickly using payment applications.
The recent COVID-19 pandemic has completely shifted the consumers’ buying and payment habits. Consumers prefer contactless payment methods, such as NFC and QR code, to avoid the spread of COVID-19 through cash handling. Government authorities in many countries are promoting digital payments to reduce the impact of the COVID-19 outbreak on their economies, boosting the payment processing solutions market demand.
Amid the ongoing Russia-Ukraine war, cash has become a scarcity in Ukraine, and the National Bank of Ukraine (NBU) has encouraged citizens to opt for cashless payments. Russian banks have faced severe restrictions from global payment networks, including SWIFT. These factors have exacerbated the need for payment processing solutions in the region.
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Ease of use and swift payment transactions through scannable codes
The QR code technology held more than 30% of the payment processing solutions market share in 2021 led by growing demand for UPI-based payment solutions. Small and medium-sized retailers are using QR-code technology to simplify payment processing methods. QR-code helps consumers to quickly pay bills without the need to enter the banking details of the retailer. QR-code also supports contactless payment methods, which has become important in the current COVID-19 pandemic.
Browse key industry insights spread across 270 pages with 361 market data tables and 34 figures & charts from the report, “Payment Processing Solutions Market Size By Technology (Near-Field Communication (NFC), QR Code, EMV), By Deployment Model (In-store, Online, Mobile), By Mode of Payment (Credit Cards, Debit Cards, E-wallets), By Organization Size (SMEs, Large Enterprises), By End-user (Tourism and Hospitality, Retail & E-commerce, Healthcare, BFSI, Government and Public Sector), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:
Seismic shift of global consumers towards online shopping is accelerating the demand for an online deployment model
The online deployment model is predicted to grow at around 10% CAGR through 2028 owing to rising internet penetration. The major e-commerce businesses generally prefer online transactions for their operations. Many companies are offering online payment processing solutions with features such as fraud prevention and flexible payment gateway options.
Easy availability of debit cards is propelling the market statistics
Debit card payment mode captured above 20% of the payment processing solutions market share in 2021 as its transaction fees and interest charges are low. A large population is availing the facility of debit cards as it can be easily issued to consumers having a bank account. The debit card can be easily issued to a bank account holder without the need to check credit history. The easy availability of debit cards to consumers is fostering the market expansion.
Rising internet penetration to enhance the adoption of payment processing solutions across SMEs
SMEs are poised to witness growth rate of nearly 10% through 2028 driven by rising internet penetration. Increasing internet penetration is enabling more retailers to sell their products online. SMEs use payment processing solutions to provide flexibility to their consumers during online payments. These solutions help these retailers to improve their operations by removing redundancies in online payment methods.
Growing adoption of digital payments in North America
The North America payment processing solutions market is expected to hold over 40% of the revenue share by 2028 due to the high usage of digital payments in the region. The growing acceptance of e-wallets is another factor augmenting the regional market revenue. The availability of major e-wallet companies, such as Apple Pay and Amazon Pay, in the U.S. is fueling the demand for payment processing solutions.
Resurgence of tourism sector supported by stimulus packages
The tourism and hospitality industry accounted for approximately 30% of the market share in 2021 impelled by the feasibility of payment for international tourists and travelers. Most tourists adopt digital payment through smartphones and cards. Companies operating in the tourism industry use payment processing solutions to simplify payment for their international customers. The ongoing COVID-19 pandemic has amplified the demand for contactless payments across tourists.
Developing new solutions is the key strategy adopted by major market participants
Some of the key players operating in the payment processing solutions market include ACI Worldwide, Inc., Adyen N.V., Authorize.Net, Due, Inc., Dwolla, Inc., Fidelity National Information Services, Inc. (FIS), First Data Corporation, Fiserv, Inc., Flagship Merchant Services, Global Payments, Inc., Jack Henry & Associates, Inc., Mastercard Incorporated, PayPal Holdings, Inc., Paysafe Group Limited, PayU, Square, Inc., Stripe, Inc., and Visa, Inc. Companies are emphasizing on the development of new payment solutions to gain a competitive advantage over their competitors.