Payment Gateway Global Market Opportunities and Strategies to 2033

This report describes and explains the payment gateway market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global payment gateway market reached a value of nearly $32 billion in 2023, having grown at a compound annual growth rate (CAGR) of 16.84% since 2018. The market is expected to grow from $32 billion in 2023 to $75 billion in 2028 at a rate of 18.52%. The market is then expected to grow at a CAGR of 17.82% from 2028 and reach $170.2 billion in 2033.

Growth in the historic period resulted from growth in investments in the fintech industry, increasing international trade and supportive government initiatives. Factors that negatively affected growth in the historic period was lack of digital literacy.

Going forward, e-commerce expansion, rise in smartphone adoption, rise in digital payments and increasing internet penetration will drive the growth. Factor that could hinder the growth of the payment gateway market in the future rising cybersecurity issues.

The payment gateway market is segmented by type into hosted and non-hosted. The hosted market was the largest segment of the payment gateway market segmented by type, accounting for 56.96% or $4.3 billion of the total in 2023. Going forward, the non-hosted segment is expected to be the fastest growing segment in the payment gateway market segmented by type, at a CAGR of 22.49% during 2023-2028.

The payment gateway market is segmented by end-user into travel and hospitality, banking, financial services and insurance (BFSI), retail and e-commerce, media and entertainment and other end users. The retail and e-commerce market was the largest segment of the payment gateway market segmented by end-user, accounting for 37.52% or $2.8 billion of the total in 2023. Going forward, the banking, financial services and insurance (BFSI) segment is expected to be the fastest growing segment in payment gateway market segmented by end-user, at a CAGR of 23.20% during 2023-2028.

The payment gateway market is segmented by enterprise size into large enterprise and small and medium enterprise The large enterprise market was the largest segment of the payment gateway market segmented by enterprise size, accounting for 58.64% or $4.4 billion of the total in 2023. Going forward, the small and medium enterprise segment is expected to be the fastest growing segment in the payment gateway market segmented by enterprise size, at a CAGR of 22.60% during 2023-2028.

North America was the largest region in the payment gateway market, accounting for 36.54% or $11.7 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the payment gateway market will be Asia Pacific and Western Europe where growth will be at CAGRs of 21.34% and 18.59% respectively. These will be followed by South America and Eastern Europe where the markets are expected to grow at CAGRs of 18.25% and 17.87% respectively.

The global payment gateway market is highly concentrated, with a small number of players dominating the market. The top ten competitors in the market made up to 72.69% of the total market in 2022. Amazon Payments Inc. was the largest competitor with a 28.36% share of the market, followed by PayPal Holdings, Inc. with 8.10%, Stripe, Inc. with 7.95%, Visa Inc. with 7.55%, Fiserv, Inc. with 6.52%, JPMorgan Chase & Co. with 6.07%, Global Payments, Inc. with 5.94%, Klarna Bank AB with 0.93%, PayU Group with 0.66% and Verifone Holdings, Inc. with 0.60%.

The top opportunities in the payment gateway market segmented by type will arise in the hosted segment, which will gain $23 billion of global annual sales by 2028. The top opportunities in the payment gateway market segmented by enterprise size will arise in the large enterprise segment, which will gain $24.3 billion of global annual sales by 2028. The top opportunities in the payment gateway market segmented by end-user will arise in the retail and e-commerce segment, which will gain $16.1 billion of global annual sales by 2028. The payment gateway market size will gain the most in the USA at $11.8 billion.

Market-trend-based strategies for the payment gateway market include focus on strategic partnerships and collaborations to strengthen their market position, enhance product offerings and expand their geographic reach, focus on launching innovative payment gateways to promote electronic payments for government services, focus on enhancing the security, efficiency, interoperability and convenience in payment gateways, focus on launching new payment technology platforms with improved payments processing capabilities and focus on developing self-hosted payment platforms to strengthen their market position.

Player-adopted strategies in the payment gateway market include focus on growth strategy aims to strengthen P2P, commercial and B2B payment services through strategic partnerships, focus on growth strategy aims at diversifying its businesses by scaling up its capabilities to newer geographies and expanding its customers through new product developments, focus on enhancing its business operations through new product developments and focus on growth strategy aims at strengthening its business through strategic acquisitions.

To take advantage of the opportunities, the analyst recommends the payment gateway companies to focus on innovative government payment gateways, focus on advanced payment gateway solutions, focus on advanced payment technology platforms, focus on self-hosted payment platforms, focus on non-hosted segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for market expansion, provide competitively priced offerings, focus on pricing strategy development, participate in trade shows and events, focus on content marketing and thought leadership and focus on retail & e-commerce and BFSI segments.