Payment Gateways Market is Expected to Grow at a Healthy CAGR

Payment Gateways Market Valuation – 2024-2031

The payment gateways market has expanded rapidly in recent years, driven by e-commerce and digital payment methods. A payment gateway technology platform enables online payments between merchants and customers. It accepts credit cards, debit cards, e-wallets, and mobile payments. The market size surpass USD 39.01 Billion valued in 2024 to reach a valuation of around USD 162.1 Billion by 2031.

Payment gateways market growth is driven by digital payments, rising smartphone and internet penetration, online shopping attractiveness, and cloud-based payment gateway use. The payment gateway sector is likely to expand in the future as digital payments and e-commerce become more popular. The rising demand for cost-effective and efficient payment gateways is enabling the market grow at a CAGR of 21.50% from 2024 to 2031.

Payment Gateways Market: Definition/ Overview

A payment gateways is a merchant service offered by an e-commerce application service provider that permits credit card or direct payment processing for e-businesses, online merchants, bricks and clicks, and traditional brick and mortar locations. A bank may provide its customers with a payment gateway, but it can also be supplied as a separate service by a specialized financial service provider, such as a payment service provider.

A payment gateways supports a payment transaction by transferring information from a payment portal, such as a website, mobile phone, or interactive voice response service, to the front end processor or acquiring bank.

The payment gateways industry is a critical infrastructural component of the digital economy, facilitating secure and convenient online transactions for businesses and consumers globally. With the continuous growth of e-commerce and the rising complexity of payment ecosystems, payment gateways are critical to supporting the spread of online commerce and enabling businesses to thrive in an increasingly digital environment.

How E-Commerce is Experiencing Growth in the Payment Gateways Market?

The e-commerce sector is witnessing significant growth in the payment gateways market. This boom is inextricably linked to the ongoing evolution of online shopping, fueled by a variety of factors such as unrivaled convenience, broad product offers, and dynamic shifts in consumer tastes. In an era where businesses increasingly utilize digital storefronts to meet changing consumer needs, the demand for safe, efficient, and dependable payment processing solutions has risen significantly. In this context, payment gateways play an important role because they serve as the foundation for flawless digital transactions.

Apart from their primary role of enabling payments, payment gateways make a substantial contribution to increasing consumer trust in the safety and trustworthiness of online transactions. As the e-commerce ecosystem becomes more fundamental to the global economy, payment gateways emerge as critical enablers, supporting the overall pace of the digital marketplace and having a significant impact on the future trajectory of commerce.

According to the International Trade Association, the spike in virtual sales models has driven the expansion of the payment gateway market, with over 90% of B2B companies adopting them since 2020. This expansion is being driven by increased process efficiencies and broad adoption of advanced management software systems.

How can Payment Gateways Overcome Traditional Banking Limitations to Ensure Global Reach and Effortless Transactions?

The reliance on traditional banking infrastructure presents a substantial hurdle for payment gateways providers, especially in areas where banking systems may be behind technological innovation. This dependence creates barriers to transaction speed, efficiency, and accessibility. To overcome this barrier strategic alliances with innovative financial institutions and cooperation within the fintech ecosystem are essential.

Furthermore, adopting technical advancements, such as integrating blockchain or developing alternative payment channels, provides avenues for overcoming the limits imposed by existing banking institutions.

Payment gateways providers can improve their agility and responsiveness to the different needs of global consumers by exploiting these channels, regardless of how mature the local banking infrastructure is. Strategic activities and technology improvements appear as critical components in overcoming reliance on traditional banking institutions, assuring payment gateways’ resilience and adaptability in the face of changing financial environments.

Category-Wise Acumens

How the Hosted Payment is Growing in the Payment Gateways Market?

Hosted payment solutions provide organizations with a scalable infrastructure that can easily accommodate expansion and manage increased transaction volumes while paying minimal technological costs on the merchant’s end. Choosing hosted solutions enables organizations to delegate management and scaling of payment processing infrastructure to experienced third-party suppliers. These providers rely on robust and redundant systems built to easily handle surges in transaction volumes, ensuring continuous service even during peak periods of activity.

Furthermore, hosted solutions often have flexible pricing models that allow firms to pay only for the resources they use allowing for cost-effective expansion without requiring significant upfront expenditures in hardware or software. Also, hosted payment providers frequently supplement their products with extra features and services like fraud detection, analytics, and customer support, increasing the value proposition for merchants.

In essence, hosted solutions allow organizations to focus on core operations and growth goals while outsourcing the scalability and dependability of payment processing to specialist suppliers. This guarantees that transactions go smoothly and efficiently as businesses grow, allowing them to confidently and easily manage the complexity of the payment gateways industry.

Will Demand for Payment Gateways in the Media & Entertainment Industry Surge?

In the media & entertainment (M&E) industry, the need for digital content delivery and subscription-based models is highlighting the need for payment gateways that can efficiently manage subscriptions across several locations and payment methods. M&E firms must adapt to varied payment choices and currencies to maximize subscriber acquisition and retention. Payment gateways that are pushing the growth of the M&E sector provide sophisticated functionality for handling recurring payments from both international cards and local payment methods.

These gateways enable monitoring and evaluation (M&R) enterprises to offer customizable subscription plans customized to their worldwide audience’s tastes by accepting a wide range of payment methods, including credit/debit cards, digital wallets, and other payment choices. Furthermore, innovative features like dynamic currency conversion and automatic payment retry improve the user experience by reducing friction and increasing transaction success rates.

As global demand for digital content grows, payment gateways that prioritize flexibility and easy subscription management across several markets play an important role in promoting the growth and success of the Media & Entertainment business. These gateways help M&E organizations improve user satisfaction, drive revenue development, and maintain a competitive advantage in an increasingly digital market by offering the tools and skills they need to traverse the complexities of global payment ecosystems.

Gain Access into Payment Gateways Market Report Methodology

Country/Region-wise Acumens

Will Payment Gateways Market Capitalize in North America?

North America is emerging as the dominating force in the payment gateways industry, accounting for more than 36.0% of worldwide revenue. This exceptional increase is due to the region’s technology advancements and the extensive usage of payment gateways in growing end-use areas such as retail and e-commerce. The existence of important competitors such as Square, PayPal Holdings, Inc., Mastercard, BluePay, and Amazon Payments, Inc. accelerating market growth in North America.

According to Oberlo, the retail sector in the United States is experiencing growth in sales of 2.3% in 2021, with expectations of a further increase to 4.1% in 2022. This increased trend in retail sales highlights the growing relevance of payment gateways in supporting secure and efficient transactions throughout the retail ecosystem. As more consumers adopt digital payment methods, the demand for robust and dependable payment gateway solutions is likely to rise, boosting market expansion in North America.

How will Payment Gateways Market Fare in Asia Pacific?

Asia Pacific is expected to be the fastest-growing regional market during the projected period, owing to a number of government efforts targeted at improving online payment infrastructure across the area. Notably, in India, the Reserve Bank of India (RBI) regulates gateways such as Bharat Bill Pay, Paytm, and Mobikwik to enable efficient digital payments. Similarly, the Chinese government’s focus on boosting internet connection in rural areas is opening up new commercial prospects.

These concerted efforts by governments to bolster online payment infrastructure are expected to fuel the adoption of payment gateways across the Asia Pacific region. As more consumers and businesses embrace digital transactions, the demand for secure and efficient payment gateway solutions is set to soar. Consequently, the Asia Pacific market is anticipated to witness rapid growth, positioning itself as a key driver of innovation and expansion in the global payment gateways market.

Competitive Landscape

The payment gateways market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the payment gateways market include:

• Paytm Mobile Solutions Pvt Ltd
• Amazon Payments, Inc.
• PayU Group
• Adyen N.V.
• BitPay, Inc.
• Payoneer, Inc.
• WePay, Inc.
• Payza
• VeriFone
• Holdings, Inc.,
• com Co Ltd.
• Net
• Braintree
• PayPal Holdings, Inc.
• Stripe

Latest Developments

• In November 2022, BlueSnap, the payment orchestration platform for leading B2B and B2C enterprises, strengthened its cooperation with the premier e-commerce agency, objectsource, to help online retailers across Europe improve Magento integration for the developing EU market.
• In September 2022, British payments company Paysafe partnered with Spreedly, a payments orchestration platform, to assist merchants with international payments across the UK and Europe. Transactions would be made through Paysafe’s payment gateway, with a focus on the e-commerce, retail, travel, crypto, and financial services sectors.
• In August 2022, the Reserve Bank of India (RBI) issued an in-principle Payment Aggregator (PA) license to financial services platform Mswipe Technologies With this approval, Mswipe can create its own online payment gateway.

Report Scope

Payment Gateways Market, By Category

Type:

• Hosted
• Non-hosted

Enterprise Size:

• Large Enterprise
• Small and Medium Enterprise

End-User:

• Retail
• Banking, Financial Services, and Insurance (BFSI)
• Travel & Hospitality

Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research:

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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