Payment Processor Global Market Report 2024

The payment processor market size has grown rapidly in recent years. It will grow from $52.25 billion in 2023 to $58.25 billion in 2024 at a compound annual growth rate (CAGR) of 11.4%. The growth observed in the historic period can be primarily attributed to several key factors, including the increasing popularity of digital payments, advancements in technology, regulatory changes, evolving customer expectations, and the proliferation of partnerships and collaborations within the industry. These factors collectively contributed to the expansion of the digital payments landscape, as businesses and consumers alike embraced electronic payment methods for their convenience, efficiency, and security. Additionally, advancements in technology, such as mobile payment solutions and blockchain technology, played a significant role in driving growth by enabling faster, more secure, and more convenient payment transactions. Furthermore, regulatory changes aimed at promoting competition, innovation, and consumer protection also influenced the growth trajectory of the digital payments industry, while partnerships and collaborations between payment service providers, financial institutions, and technology companies further accelerated market development and adoption.

The payment processor market size is expected to see rapid growth in the next few years. It will grow to $88.93 billion in 2028 at a compound annual growth rate (CAGR) of 11.1%. The projected growth in the forecast period can be primarily attributed to the expansion of the credit card segment, driven by the global presence of major credit card vendors and the strategic initiatives undertaken by key players in the industry. Additionally, factors such as the increasing prevalence of the internet and smartphones worldwide, encompassing both large enterprises and small to medium-sized enterprises (SMEs), contribute to this growth trajectory. Major trends anticipated during this period encompass advancements in digital payments, heightened focus on security and fraud prevention measures, ongoing technological innovations, and the formation of partnerships and collaborations within the industry.

The burgeoning e-commerce sector is anticipated to propel the expansion of the payment processor market in the coming years. E-commerce, the buying and selling of goods and services over the Internet, relies heavily on payment processing mechanisms to facilitate secure online transactions. These systems accept debit and credit cards, digital wallets, and other forms of payment, enhancing checkout procedures, boosting sales conversion rates, and ensuring seamless customer experiences. For example, as reported by the U.S. Census Bureau in November 2023, the e-commerce projection for the third quarter of 2023 saw a notable 7.6 percent increase compared to the same period in 2022. Additionally, e-commerce sales accounted for 15.6% of total sales during the third quarter of 2023. Hence, the growing prominence of e-commerce serves as a significant driver for the growth of the payment processor market.

Major companies within the payment processor market are strategically focused on developing technologically advanced products, notably payment processing solutions, aimed at enhancing customer experiences through advanced features. A payment processing solution serves as a system facilitating electronic transactions between buyers and sellers. For instance, in August 2022, Beyond, a US-based provider of revenue management software, introduced Tally, a ready-to-use payment processing solution tailored specifically for vacation rental managers. Tally is designed to streamline operations, enhance guest experiences, and improve conversion rates for property managers. It offers a diverse range of payment acceptance methods including credit cards, debit cards, ACH payments, and Apple Pay, enabling property managers to cater to varied guest preferences. Additionally, Tally provides a suite of features to assist property managers in financial management, including automated payouts, reconciliation tools, and comprehensive reporting functionalities.

In February 2022, Fidelity National Information Services Inc. (FIS), a US-based financial technology company, completed the acquisition of Payrix for an undisclosed sum. This strategic move aims to enrich FIS's solution portfolio by incorporating embedded financial capabilities into its e-commerce products tailored for small and medium-sized enterprises (SMEs). FIS intends to expand its e-commerce offerings across businesses of various sizes and industries by integrating payment functionalities into Software as a Service (SaaS) platforms. Payrix, also based in the US, specializes in providing payment solutions specifically designed for SaaS companies.

Major companies operating in the payment processor market report are Visa Inc., PayPal Holdings Inc., Mastercard Inc., Fiserv Inc., Block Inc., Fidelity National Information Services (FIS), Stripe Inc., Adyen, Global Payments Inc, Worldline, Mobiquity, Jack Henry & Associates Inc, Paysafe, ACI Worldwide Inc., Marqeta Inc, Zeta, PhonePe, Razorpay, PayU, North American Bancard, BitPay, Fattmerchant, Spreedly, Secure Payment Systems, Due Inc, Sila, AeroPay, Paykickstart.

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

A payment processor is a financial entity or service provider tasked with facilitating electronic transactions between buyers and sellers, ensuring their secure and efficient handling. Its core responsibilities include authorizing, capturing, and settling funds transferred between the parties involved in a transaction.

Payment processors primarily encompass three types such as credit cards, debit cards, and e-wallet transactions. Credit cards enable cardholders to borrow funds within a predefined credit limit for making purchases or payments. They are further classified based on deployment modes, including on-premises and cloud-based, and cater to various end-user industries such as banking, financial services, and insurance (BFSI), information technology and telecommunication, healthcare, e-commerce and retail, government and utilities, among others.

The payment processor research report is one of a series of new reports that provides payment processor market statistics, including the payment processor industry's global market size, regional shares, competitors with an payment processor market share, detailed payment processor market segments, market trends and opportunities, and any further data you may need to thrive in the payment processor industry. This payment processor 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 processor market includes revenues earned by entities by providing services such as transaction processing, payment gateway integration, fraud prevention and security, payment processing APIs and multi-currency support. The market value includes the value of related goods sold by the service provider or included within the service offering. The payment processor market also includes sales of credit card machines, card readers, pin pads, near field communication (NFC) systems, and barcode scanners. 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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