Payment As A Service Market Size, Share & Industry Trends Analysis Report By Component (Platform and Services (Professional and Managed)), By Industry (Retail & E-commerce, BFSI, Healthcare, Travel & Hospitality), By Regional Outlook and Forecast, 2022 - 2028

The Global Payment As A Service Market size is expected to reach $30.5 billion by 2028, rising at a market growth of 16.6% CAGR during the forecast period.

Payment as a service is a system that enables financial institutions and banks provide their consumers with advanced product services and payment facilities. By using these services no other internal development costs are levied on the customers. Banks and organizations can move to a more agile and flexible model which offers optimum products through various cloud-based third-party platforms by utilizing payment-as-service products.



Over the last few years, many payment-as-a-service providers have appeared providing specialized services to financial institutions. These services include cross-border payments, payment engine hosting, reconciliation, & settlement, and third-party collections via cloud platforms. The payment as a service via a cloud-based platform covers the entire value chain.

The vendors can collaborate with e-commerce entities, banks, financial institutions, fintech, insurance companies, and telecommunication companies for online payment service gateways. These organizations can integrate their services with PaaS platforms through open APIs, depending on the business needs. PaaS offerings provide cost-benefit to customers, accelerate service commercialization, and are scalable with availability.

For financial institutions; banks; and other organizations, payment-as-a-service has a multitude of benefits across the entire payment value structure. PaaS has reduced financial institutions’ costs as PaaS providers have their own hardware and software. It has also helped organizations to reduce management costs and optimize technology costs.

COVID-19 Impact Analysis

The Payment-as-a-service industry has been positively impacted by COVID-19. This is because of the increase in the adoption and utilization of online payment methods among consumers worldwide. As consumers are becoming aware of the payment structure, the payment-as-a-service market has seen massive growth. The rising trend of digital payments during the pandemic has boosted industry growth. A certain degree of shift in consumers from traditional payments to digital payments has been observed ever since COVID-19 started. This is largely because of the worries associated with the transmission of coronavirus through cash transactions.

Market Growth Factors

Rising adoption of digital payments

The rising smartphone penetration and massive use of the internet with technological developments have increased the demand for online payment gateways across various countries. Customers are using online payment channels more often as banks and financial institutions offer real-time payment services. This immediate payment mechanism allows customers to use varied features of online bill payments. These services have resulted in a change in consumer behavior patterns from cash payments to online payments with easy access to the internet.

Increasing e-commerce transactions

E-commerce business over the last few years has grown significantly owing to the rising number of smartphone users, and the increasing internet penetration. E-commerce provides an online platform for goods & services to consumers from businesses directly. Consumers are progressively shifting towards online purchases for a number of goods and services like groceries, health, beauty, apparel, accessories, computer & electronics, and books. E-commerce platforms provide individuals with ease of ordering and receiving at one’s doorstep.

Market Restraining Factors

Security issues while making digital transactions

Online payment gateways are prone to severe external threats despite rigorous measures like symmetric encryption to make online payments secure. Scammers are ascribing to phishing attacks to steal the personal and financial information of people through their e-wallets. Moreover, online payments are also weakened by insufficient authentications. Other people can also use e-wallets, and cards of other people if unique identification measures like biometric or facial recognition are not adopted.

Component Outlook

Based on component, the payment as a service market is divided into platform and services. The service segment covered a substantial growth rate in the payment as a service market in 2021. The main reason behind the service segment’s growth is the ability to enhance the customer experience and fulfilling the additional demands of the customers. These services become very important because they are directly associated with customer relationship engagement. Further, all pre and post-deployment solutions are managed with the help of these services.

Service Outlook

On the basis of service type, the payment as a service market is fragmented into managed and professional. In 2021, the professional segment registered the largest revenue share in the payment as a service market. The major factor for the rise in the growth of the segment is the acceptance of professional services worldwide to provide API-based services for digital payments. The use of professional services also assists businesses to comply with multiple tax requirements, self-service accounts, tracking financial performance, and easy online payments.

Industry Outlook

By industry, the payment as a service market is segmented into retail & e-commerce, healthcare, travel & hospitality, BFSI and others. In 2021, the retail & e-commerce segment witnessed the highest revenue share in the payment as a service market. The flourishing online shopping platforms through e-commerce along with exceptional internet connectivity have driven the growth of the sector. Payment as a service has facilitated online vendors, and retailers to receive payments from consumers using numerous methods like internet banking, credit/debit cards, and digital wallets.

Regional Outlook

Region wise, the payment as a service market is analyzed across North America, Europe, Asia-Pacific and LAMEA. In 2021, the Asia-Pacific region recorded the highest revenue share in the payment as a service market. The governments’ encouraging digitization and promoting the use of online payment technologies has imputed the growth of the payment as a service in the region. The Asia-Pacific is witnessing huge investments in the e-commerce industry which rises the usage of digital payment apps. With this rising digital savvy consumers paying digitally for goods and services, the payment as a service market would expand in Asia-Pacific.

The Cardinal Matrix - Payment As A Service Market Competition Analysis

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Fiserv, Inc. and Global Payments, Inc. are the forerunners in the Payment As A Service Market. Companies such as ACI worldwide, Inc., Paysafe Limited, Agilysys, Inc. are some of the key innovators in Payment As A Service Market.

The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Agilysys, Inc., PPRO Financial Ltd. (Alpha Fintech), Aurus, Inc., Deluxe Corporation (First American Payment Systems L.P.), Fiserv, Inc., Global Payments, Inc., Ingenico Apollo Global Management, Paysafe Limited, VeriFone, Inc. (Francisco Partners) and ACI worldwide, Inc.

Strategies Deployed in Payment As A Service Markett

Partnerships, Collaborations and Agreements:

• Nov-2022: Paysafe Holdings UK Ltd. partnered with Microsoft Corporation, an American multinational technology corporation providing consumer electronics, computer software, and related services. Following this partnership, Paysafe is launching a new alternative payment option on Xbox.com and Microsoft.com, named Paysafecard, which aims to expand its customer base to nine more countries.
• Aug-2022: Aurus, Inc. partnered with Riskified Ltd., a provider of software as a service chargeback and fraud prevention technology. This partnership effectively manages merchant's payments through channels, and risk management solutions and offers omnichannel payments and fraud management to enhance customer experience.
• Jul-2022: Aurus came into partnership with Blackhawk Network, a US-based digital gift card, prepaid debit, and payment service provider. This partnership combines the talents and capabilities of Aurus & Blackhawk that accelerate and enables unified-commerce payments and benefit both consumers and merchants.
• Jul-2022: ACI Worldwide, Inc. partnered with IR, a provider of analytics for payment ecosystems, and performance management. Through this partnership, ACI enhanced its real-time analytical capabilities and offered actionable and comprehensive business insights.
• Feb-2022: Paysafe Holdings UK Ltd. entered into a partnership with Bally’s Corporation, a betting, iGaming, and casino entertainment company. Under this partnership, Paysafe offers access to the specialized iGaming payments provider with a suite of alternative payment methods (APMs) to be integrated into both Bally Bet in Arizona and BallyCasino.com in New Jersey.
• Nov-2021: ACI Worldwide, Inc. partnered with Mastercard, a global payments & technology company providing services to merchants, consumers, issuers, governments, and businesses. Through this partnership, ACI added value for financial institutions and expanded services and pathways to payment modernization.
• Oct-2021: ACI Worldwide, Inc., came into partnership with RocketFuel Blockchain, Inc., a payments solutions provider through Bitcoin and other cryptocurrencies. This partnership integrated the Secure eCommerce solution of ACI and RocketFuel offering merchants easy and smarter payment methods into mobile checkout using cryptocurrencies.
• Aug-2021: ACI Worldwide, Inc. extended its partnership with Microsoft Corporation, an American multinational technology corporation providing consumer electronics, computer software, and related services. With this partnership, ACI with Microsoft offers a payment platform solution in the cloud. Together, the companies aim to help customers in growing their businesses.
• Jul-2021: Paysafe Holdings UK Ltd. collaborated with Bankable, an architect of a ‘banking-as-a-service’ solutions provider. Through this collaboration, Paysafe & Bankable aims to launch a range of integrated, omnichannel banking services and serve Paysafe’s new core banking platform offering supporting technology to enhance value-added services.
• Apr-2021: Paysafe Holdings UK Ltd. came into collaboration with Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc. offering on-demand cloud computing platforms and APIs. Under this collaboration, Paysafe is migrating its portfolio of mission-critical workloads which includes Paysafecard, its digital wallets, eCash solutions, Paysafecash, NETELLER, and Skrill to Amazon web services to develop consumer wallet products and cloud-native merchant payment for consumer and business customers.
• Mar-2021: Agilysys, Inc. partnered with CITCON, an all-in-one payment platform. This partnership enables hospitality providers to offer travelers access to mobile wallet solutions and increases the market presence of both companies.
• Feb-2021: ACI Worldwide, Inc. came into partnership with Auriga, a leader in payment systems and omnichannel banking. Through this partnership, the Enterprise Payments Platform of ACI integrates with WinWebServer (WWS), an omnichannel banking solution of Auriga. Additionally, this offers next-generation self-service banking to banks that combine physical and digital channels in a highly secure, technology platform.
• Aug-2020: Global Payments Inc. collaborated with Amazon Web Services (AWS), a subsidiary of Amazon.com, Inc. offering on-demand cloud computing platforms and APIs. Under this agreement, Global Payments and AWS transform the global payments core issuing platform to offer secure and innovative solutions and make technology available to all institutions and expand the customer base for the issuer processing service of Global Payments.
• Apr-2020: Deluxe Corporation announced a partnership with Fiserv, a global provider of financial services and payments technology. Through this partnership, the Deluxe Payment division plans to extend the offering of payment technology and enable its business eCommerce customers to integrate the Clover platform with online payments.

Product Launches and Product Expansions:

• Nov-2022: Global Payments, Inc. released a payment method offering bank payments, Open Banking along with YouGov, a UK-based data analytics and market research firm. This payment method leverages secure and direct access to bank accounts and offers an alternative for consumers and merchants.
• Oct-2022: PPRO released an orchestration layer to offer clients scale payment services via one connection. Hundreds of payment, risk products from multiple providers are brought together by the new no-code orchestration layer that aims to help customers to launch new tools and products in a more timely manner and more efficient way.
• Feb-2022: ACI Worldwide, Inc. unveiled ACI PayAfter, a solution enabling merchants to offer over 70 BNPL options. With this product, merchants offer a wider choice of BNPL options and a more inclusive experience.
• Sep-2021: Agilysys, Inc. unveiled its new Agilysys Visual One PMS Version 12. This product is a deployable browser-based solution offering a package of enterprise PMS modules and capabilities through the cloud or on-premise.
• Mar-2020: ACI Worldwide, Inc. released its new ‘Incremental Learning’ technology, a fraud monitoring, and prevention solution. Through this product, ACI aims to enhance fraud protection for financial institutions, merchants, and their customers.

»Acquisitions and Mergers:

• Sep-2022: Fiserv, Inc. completed the acquisition of The LR2 Group doing business as The City POS, a provider of custom Point of Sale systems to individual and franchise merchants. Through this acquisition, Fiserv reinforces its Acceptance segment and expands its merchant services business reach with the inclusion of payment processing and point-of-sale services from LR2 Group.
• Aug-2022: Global Payments, Inc. took over EVO Payments, Inc., a provider of payment technology and solutions. Under this acquisition, Global Payments with EVO offers a suite of payment solutions and distinctive software to their 4.5 million merchant locations and over 1,500 financial institutions all over the world.
• Dec-2021: Agilysys, Inc. signed an agreement to acquire ResortSuite, an integrated property management solution provider based in Canada. Under this acquisition, Agilysys aims to offer an opportunity to provide next-generation SaaS solutions to ResortSuite's customers. Additionally, this enables revenue synergies, contactless capabilities, and delivery of world-class integrated hotel property management to the hospitality industry.
• Nov-2021: Paysafe Holdings UK Ltd. acquired viafintech, a German fintech company connecting corporations, consumers, retailers and through its platform. This acquisition strengthened its eCash and alternative payment portfolio by combining viafintech’s leading payment solutions.
• Sep-2021: Paysafe Holdings UK Ltd. took over PagoEfectivo, a Peruvian-based alternative payments (APM) platform. Through this acquisition, Paysafe strengthens its specialized payments and presence in regions and also allows payment processing services and digital wallets to an extended merchant customer base.

Geographical Expansions:

• Jul-2022: Aurus expanded its geographical footprint by establishing new headquarter in Dubai's DMCC Crypto Center for MENA (Middle-East & North Africa) and SEA (South East Asia) regions. This headquarter focuses on the onboarding of regional and local partners and the expansion of Aurus precious metal-backed tokens to the retail market.
• Dec-2020: Paysafe Holdings UK Ltd. expanded its global footprint by releasing an alternative payment method in the United States, Paysafecash. Expansion of this product offers Americans to transact online which includes paying rent, engaging in eCommerce, a range of other digital financial services, and government bills.

Scope of the Study

By Component

• Platform
• Services
  • Professional
  • Managed

By Industry

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

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America

• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe

• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific

• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Agilysys, Inc.
• PPRO Financial Ltd. (Alpha Fintech)
• Aurus, Inc.
• Deluxe Corporation (First American Payment Systems L.P.)
• Fiserv, Inc.
• Global Payments, Inc.
• Ingenico Apollo Global Management
• Paysafe Limited
• VeriFone, Inc. (Francisco Partners)
• ACI worldwide, Inc.

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