Payment Gateway Market Size, Share & Trends Analysis

Published On : 12/16/2022

The global payment gateway market was valued at over USD 22 billion in 2021. It is expected that the market will grow at a CAGR of 22.1% between 2022 and 2030. The increasing demand for mobile payments is a major factor that is expected to drive the market’s growth. In addition, the rising internet penetration and e-commerce sales are expected to fuel the growth of the market.

Due to the increasing number of fraudulent activities and the need for secure internet transactions, many companies are now looking for payment gateways that can help prevent these types of activities. These payment gateways help consumers avoid the hassles of shopping in physical stores. They allow them to complete their transactions online, which eliminates the need for them to wait in line.

Due to the technological advancements that have occurred in the financial industry, financial service providers have been able to provide their customers with various digital services. Businesses can integrate batch payments in Xero like this service at GetPinch to get paid easily. The rising number of internet users and the increasing number of money transfers through mobile apps are some of the factors that are driving the growth of the market.

Due to the increasing number of e-commerce companies and financial service providers working together to provide their customers with a digital payment infrastructure, the market for payment gateway is expected to grow. Several banks in the world are also entering into agreements with payment gateway providers to provide their customers with real-time payment facilities.

COVID-19 Impact Analysis

The global e-commerce market has been experiencing positive growth during the pandemic. The rise in the number of people shopping online has led to a 13% to 20% increase in the number of people who prefer to make purchases through e-commerce platforms. In addition, the increasing number of individuals using the internet and mobile services has also contributed to the growth of the market.

Report Coverage & Deliverables

• Type Insights

The hosted payment gateway market is expected to grow at a high rate during the next few years. The increasing number of merchants using this type of payment system is due to the various factors that it provides them with such as easy payment setup and reduced liability. The non-hosted payment gateway market is expected to grow at a high rate during the next few years.

• Enterprise Size Insights

The large enterprise segment held the largest share of the global payment gateway market in 2021. The increasing number of enterprises that have websites that are frequently visited by their customers is expected to drive the growth of the market during the next few years.

• End-Use Insights

The e-commerce and retail segment held a significant share of the global market in 2021. According to Oberlo, the retail industry is expected to grow at an average rate of 3.58% between 2018 and 2022. The increasing demand for online shopping is also expected to fuel market growth.

• Regional Insights

North America was the largest contributor to the global payment gateway market in 2021. The region’s growth can be attributed to the technological advancements in the payment gateway industry and the increasing number of players such as PayPal Holdings Inc., Square, Mastercard, and Amazon Payments Inc.

The Asia Pacific payment gateway market is expected to be the fastest-growing region in the coming years. This can be attributed to the various initiatives taken by governments in the region to improve the e-commerce infrastructure.

Market Share Insights and Key Companies

The increasing number of mergers and acquisitions by the players in the payment gateway market is expected to drive the market’s growth as well. For instance, in October 2020, payment processing company Paystack, which is based in Nigeria, was acquired by a financial service company, Stripe. Through this acquisition, the company was able to expand its operations in Africa.

Due to the increasing number of security concerns related to the online payments industry, service providers are expected to adopt more advanced technologies to prevent fraud. Competitive strategies adopted by players are also expected to drive the market’s growth. These include the development of new products and collaborations.

Jessica Weisman-Pitts

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.