Payment Gateway Global Market Report 2024

The payment gateway market has grown rapidly in recent years. It will grow from $32.05 billion in 2023 to $37.59 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The expansion observed in the past period can be credited to several factors including the surge in e-commerce activities, the rise of globalization leading to increased cross-border transactions, heightened digitalization trends, regulatory shifts, and a pivotal emphasis on consumer trust and security.

The payment gateway market is expected to see rapid growth in the next few years. It will grow to $71.11 billion in 2028 at a compound annual growth rate (CAGR) of 17.3%. The anticipated growth in the upcoming period is expected to stem from persistent e-commerce expansion, the increasing prevalence of mobile payments, growing adoption in emerging markets, the integration of alternative payment methods, and the advancement in data analytics. Noteworthy trends projected in this period encompass the incorporation of artificial intelligence and machine learning, the surge in subscription and recurring payments, compliance with regulatory frameworks such as PSD2, the integration of blockchain and cryptocurrencies, and the continual optimization of user experiences.

The escalating adoption of digital payments is anticipated to drive the expansion of the payment gateway sector. Digital payments, characterized by cashless and check-free electronic transactions, rely on various methods such as credit cards, debit cards, mobile wallets, and online payment systems. As of September 2023, approximately 17.0% of expenditures in the UK's retail, leisure, and hospitality sectors were conducted through digital wallets, projected to soar to $160.50 billion (£127.7 billion) by 2027-2028 and potentially double to 39.7% of total transactions, around $263.94 billion (£210 billion) by 2033. This trend is fueling the growth of payment gateway services facilitating secure connections between businesses' websites and payment processors.

The surge in e-commerce sales is poised to propel the payment gateway market's growth. E-commerce, involving online transactions for goods and services through digital platforms, is projected to reach a market value of $285.60 billion in the UK by 2025, with the country ranking third globally in online retail after China and the US. Payment gateways play a crucial role in securing and facilitating online transactions, encrypting sensitive data to ensure seamless and safe money transfers between buyers and sellers. This expansion of e-commerce is a driving force behind the rising demand for secure payment gateway services.

Voice recognition technology is emerging as a significant trend within the payment gateway market. Companies in this sector are embracing innovative technologies to maintain their market standing. Notably, in February 2023, Ubona Technologies introduced a pioneering speech recognition-based payment solution, '123 UPI,' allowing users to conduct digital transactions in their preferred Indian language using any phone - be it a feature phone or a smartphone. This technology utilizes automatic speech recognition to facilitate digital payments in native languages, catering to diverse user preferences.

Strategic partnerships have become a prevailing approach among major players in the payment gateway industry. These collaborations leverage the strengths and resources of each entity to achieve mutual benefits and expand market reach. For example, in July 2023, Razorpay, an Indian fintech company, partnered with Curlec, a Malaysian provider of comprehensive payment solutions. This collaboration aimed to launch the Curlec by Razorpay international payment gateway in Malaysia, bridging local and international payment challenges in emerging markets, and offering a unified payment gateway solution.

In February 2023, Cashfree Payments, an Indian payment and banking technology firm, completed the acquisition of Zecpe for an undisclosed sum. This strategic move aims to bolster Cashfree Payments' capabilities in Direct-to-Consumer (D2C) checkouts, empowering their merchants with a more comprehensive end-to-end checkout and payment process. Zecpe, recognized for enabling merchants to improve conversion rates and facilitate incremental growth, perfectly aligns with Cashfree Payments' strategic goals. This acquisition will equip Cashfree Payments to offer additional value-added services such as reducing Return to Origin (RTO) instances, enhancing fraud detection, and streamlining address pre-filling. It strongly resonates with Cashfree Payments' commitment to enhancing the overall customer experience for their merchant base. Zecpe, based in India, specializes in providing a one-click checkout platform.

Major companies operating in the payment gateway market report are Adyen NV,PayU Group,Amazon Payments Inc.,PayPal Holdings Inc.,Authorize.Net,Verifone Holdings Inc.,Bitpay Inc.,Wepay Inc.,Braintree Payment Solutions LLC,Stripe Inc.,Bluepay Services Private Limited,Skrill Limited,Payline Data Services LLC,Payoneer Inc.,Worldpay Inc.,Payza,Ingenico Group,Alipay.com,Paytm Mobile Solutions Pvt. Ltd.,Square Inc.,2Checkout.com Inc.,BlueSnap Inc.,CCBill LLC,Dwolla Corp.,First Data Corporation,Mollie B.V.,Global Payments Inc.,Sage Group plc,SecurePay Ltd.,HyperPay Co. Ltd.,Instamojo Technologies Pvt. Ltd.

North America was the largest region in the payment gateway market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global payment gateway market report during the forecast period. The regions covered in the payment gateway market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the payment gateway market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Payment gateways primarily fall into two categories hosted and non-hosted. A hosted payment gateway represents a third-party payment solution enabling merchants to accept payments from customers without the need to retain sensitive payment information on their servers. These gateways find application across various sectors such as travel, hospitality, banking, financial services, insurance (BFSI), retail, e-commerce, media, entertainment, and other industries, catering to both large enterprises and small to medium-sized businesses.

The payment gateway market research report provides payment gateway market statistics, including payment gateway industry global market size, regional shares, competitors with a payment gateway market share, detailed payment gateway market segments, market trends and opportunities, and any further data you may need to thrive in the payment gateway industry. This payment gateway market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The payment gateway market includes revenues earned by entities through on-site payments, redirected payment gateways, mobile payments, and payment security services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The payment gateway market consists of sales of payment card readers and point-of-sale (POS) terminals used in payment gateway services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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