Online Payment Gateway Market Research Report - Forecast to 2030

Global Online Payment Gateway Market Research Report, By Type (Pro/Self-Hosted Payment Gateways, Local Bank Integrates, Platform-Based Payment Gateway Solution, Others), By Application (Micro and Small Enterprises, Large Enterprises, Mid-Size Enterprises) - Forecast till 2030

ID: MRFR/ICT/4886-CR | August 2018 | Region: Global | 108 pages         

Online Payment Gateway Market

Online Payment Gateway Market is predicted to touch USD 193.27 Billion at a 10.18% CAGR between 2020 to 2030.

Segmentation

By Type Pro/Self-Hosted Payment Gateways Local Bank Integrates Platform-Based Payment Gateway Solution Others
By Application Micro and Small Enterprises Large Enterprises Mid-Size Enterprises

Key Players

  • Wirecard AG (Germany)
  • Global Payments Inc. (US)
  • Worldpay Inc. (U.S.)
  • Naspers Ltd. (South Africa)
  • PayPal Holding(U.S.)
  • SecurePay Pty Ltd. (Australia)
  • Tencent Holdings Ltd. (China)
  • CCBill LLC (U.S.)
  • Visa Inc. (U.S.)
  • Alibaba Group Holding Ltd. (China)

Drivers

  • Emerging Technologies like AI and IoT to Bolster Market Growth
  • Advances in Billing Methods to Offer Robust Opportunities
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Online Payment Gateway Market Analysis


Global Online Payment Gateway Market is predicted to touch USD 193.27 Billion at a 10.18% CAGR between 2020 to 2030, reveals the latest Market Research Future’s (MRFR) online payment gateway market forecast report. The strong growth of the online payment gateway market growth can be accredited to an increase in online transactions and demand for secure online payment gateway. 


COVID-19 Analysis


The adverse effects of the COVID-19 outbreak have trickled down to key sectors of the worldwide economy, with hospitality, aviation, retail, auto, and manufacturing sector bearing the maximum brunt of the lockdown. This has impacted the fast-growing online payments that are linked closely to the above-mentioned sectors. Reduction in the discretionary expenditure by consumers on entertainment, movies, and dining out, travel bans, and shut shops had a negative impact on the online payment gateway market demand. There has been a decline in the online payment volume in restaurants, e-commerce (non-essentials), entertainment, hotels, hospitality, tourism, airlines, among others. 


On the brighter side, there are some areas that experienced an uptick in online payment gateway owing to its growing adoption at the time of the lockdown. These entail utility/bill payments, recharges, online gaming, EdTechs, OTT players (telecom and media), online pharmacies, and online grocery stores. Online payment volumes have also received a boost from the government that has pledged monetary help to poor people through direct transfers to bank accounts. 


The highly contagious coronavirus has pushed the public to practice online payments increasingly. It has fuelled the growth of e-commerce sales worldwide, with countless consumers in quarantine across the globe, buying services, goods, and entertainment online. There has been a change in the payment behavior of consumers due to this outbreak. Today people are using online payments more than ever and will continue to do so even post this virus is contained. Contactless cards and e-wallets are the most widely used payment methods that are benefitting largely from this outbreak, with consumers making more purchases online and using less cash. Leading online payment gateway service provider is coming up with new products to cater to the emerging requirement for contactless transactions at the time of this pandemic. All this is likely to boost the online payment gateway market size over the forecast period. 


Online Payment Gateway Market Dynamics



  • Drivers


Emerging Technologies like AI and IoT to Bolster Market Growth 


Emerging technologies such as artificial intelligence & the internet of things can carry out specific tasks and also automate the complete transaction process. AI, for instance, can be used for gaining better insights about analytics and feedback at the payment gateways. This can bolster market growth over the forecast period.


Additional factors adding to the online payment gateway market share include the rising e-commerce sales, growing internet penetration, use of contactless payments worldwide, evolving customer expectations, advances in mobile payment technology, increasing use of mobile wallets, increase in online transactions, growing inclination of customers towards cardless and cashless payments, penetration of smartphones, the emergence of smaller denomination payments, demand for best online payment gateway & secure online payment gateway, and benefits such as better security and quick payment.



  • Opportunities


Advances in Billing Methods to Offer Robust Opportunities 


Advancements in billing methods like the emergence of token systems, cashless transactions, and cash pooling is likely to offer robust opportunities to market players in the upcoming years.



  • Restraints


Security Concerns May Act as a Market Restraint 


Security concerns about online transactions owing to rise in cases of hacking may act as a market restraint over the forecast period. In online payment methods, the customer and the enterprise have to share their card and banking details to online payment companies for proceeding with the transaction. The sharing of these details may cause security-related issues.



  • Challenges


Lack of Global Cross-Border Payment Standards to Act as a Major Market Challenge


The lack of cross-border payments standards worldwide due to different government regulations and compliances may act as a major market challenge over the forecast period.


Online Payment Gateway Market Segmentation


Online Payment Gateway Market has been segmented based on Type and Application. 


Platform-Based Payment Gateway Solutions Segment to Lead Online Payment Gateway Market 


By type, the global online payment gateway market is segmented into pro/self-hosted payment gateways, local bank integrates, and platform-based payment gateway solutions. Of these, the platform-based payment gateway solutions will lead the market over the forecast period. The rise in e-commerce and m-commerce industry is adding to the growth of the segment. 


Micro and Small Enterprise Segment to Dominate Online Payment Gateway Market 


By application, the online payment gateway market is segmented into micro and small enterprise, mid-size enterprise, and large enterprise. Of these, the micro and small enterprise segment will dominate the market over the forecast period. The accessibility of round the clock help by small enterprises for online shopping to offer a better online experience to customers such as an attractive discount, convenience, and easy access is adding to the growth of the segment. 


Online Payment Gateway Market Regional Analysis


North America to Dominate Online Payment Gateway Market 


By region, the global online payment gateway market report covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), and Rest of the World. Of these, North America will dominate the market over the forecast period. Increase in online transactions due to high inclination of consumers towards e-commerce platform, the widespread utility of debit cards, credit cards, and m-commerce, technological advances, need for online payment gateway services, wide applications in different end use segments, increasing dependence on electronic billing, increasing dependence of consumers for online shopping, and increasing use of online business platforms are adding to the global online payment gateway market growth in the region. 


Europe to Hold Second-Largest Share in Online Payment Gateway Market 


In Europe, the global online payment gateway market is predicted to hold the second-largest share over the forecast period. The presence of well-established players that offer the best online payment gateway services and technological advances to offer the best online payment gateway solutions are adding to the global online payment gateway industry growth in the region. 


Competitive Landscape


Global Online Payment Gateway Industry is consolidated with the presence of several big players. They have adopted various inorganic and organic growth strategies to boost their presence and widen their portfolios, such as strategic alliances, new product launches, joint ventures, expansion, collaborations, and mergers & acquisitions.


Online Payment Gateway Market Key Players



  • Wirecard AG (Germany)

  • Global Payments Inc. (US)

  • Worldpay Inc. (U.S.)

  • Naspers Ltd. (South Africa)

  • PayPal Holding(U.S.)

  • SecurePay Pty Ltd. (Australia)

  • Tencent Holdings Ltd. (China)

  • CCBill LLC (U.S.)

  • Visa Inc. (U.S.)

  • com Inc. (U.S.)

  • Alibaba Group Holding Ltd. (China)

  • Verizon Communications Inc. (U.S.)

  • GMO Payment Gateway Inc. (Japan)

  • Stripe (U.S.)

  • CASHU (UAE)

  • com Inc. (U.S.)

  • Adyen NV (Netherlands)

  • First Data Corp. (U.S.)


Key Developments 


December 2020- Leading online payments services provider in India, PayU has joined hands with Google Pay for introducing for merchants tokenized payments flow.


Report Scope 


The report throws light on the market overview together with the forecast of the market on a regional & a global basis. Complete research has been carried out to shed light on the ways in which the market dynamics may affect the scenario of the market in the existing and as well as future days. Opportunities, trends, restraints, and drivers have been brought into the light to equip and arm clients thoroughly, particularly when it comes to decision making. The trends and opportunities of the market have been categorically segmented into several segments that also entail the segmentation on a geographical basis to offer customers a detailed understanding and precise assessment. The market report starts with the analysis of the market and highlights the market definition along with the market taxonomy, pricing analysis, restraints and drivers, present market trends, and value chain. Each segment highlights a detailed qualitative and qualitative market aspect 


By Type 



  • Pro/self-hosted Payment Gateways

  • Local Bank Integrates

  • Platform-based Payment Gateway Solutions


By Application 



  • Micro and Small Enterprise

  • Mid-size Enterprise

  • Large Enterprise


By Region 



  • North America

  • Europe

  • Asia Pacific (APAC)

  • Rest of the World (RoW)



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 193.27 Billion
  CAGR   10.18%
  Base Year   2019
  Forecast Period   2020-2030
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   By Type, Application
  Geographies Covered   North America, Europe, Asia-Pacific
  Key Vendors   Wirecard AG (Germany) Global Payments Inc. (US) Worldpay Inc. (U.S.) Naspers Ltd. (South Africa) PayPal Holding(U.S.) SecurePay Pty Ltd. (Australia) Tencent Holdings Ltd. (China) CCBill LLC (U.S.) Visa Inc. (U.S.) Alibaba Group Holding Ltd. (China)
  Key Market Opportunities   Advances in Billing Methods to Offer Robust Opportunities
  Key Market Drivers   Emerging Technologies like AI and IoT to Bolster Market Growth


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Frequently Asked Questions (FAQ) :

Increasing support by governments extended to cashless economy is poised to drive the expansion of the online payment gateway market.

The online payment gateway market is poised to mark 10.18% CAGR.

The valuation of the online payment gateway market is expected to rise from USD 61.8 Bn in 2017 to USD 193.27 Billion by 2030.

The players operating in the online payment gateway market are First Data Corp. (U.S.), Amazon.com, Inc. (U.S.), Adyen NV (Netherlands), CASHU (UAE), GMO Payment Gateway, Inc. (Japan), Stripe (U.S.), Verizon Communications, Inc. (U.S.), 2Checkout.com, Inc. (U.S.), Alibaba Group Holding Ltd. (China), Visa, Inc. (U.S.), Tencent Holdings Ltd. (China), CCBill, LLC (U.S.), SecurePay Pty Ltd. (Australia), Global Payments, Inc. (US), Naspers Ltd. (South Africa), PayPal Holdings, Inc. (U.S.), Worldpay, Inc. (U.S.), and Wirecard AG (Germany).

The platform-based payment gateway segment is poised to mark 13.7% CAGR.

The large enterprise segment is projected to strike 12.8% CAGR.

Europe is anticipated to register 13.1% CAGR.

Growing use of smartphones for online payments is driving the online payment gateway market creating a highly competitive landscape.


The global online payment gateway ecosystem consists of various global, regional, and local service providers that are continuously evolving to enhance their market position. Intense competition and rapid advances in technology to cope with the security concerns are key factors that aid the market growth. The service providers compete based on cost, efficiency, security, and reliability of the services to sustain in the market. It is important for the service providers to provide a cost-efficient and secure online payment gateway, to maintain their market position and gain a competitive advantage.


Vendors in the online payment gateway market are focusing towards improving their services and expanding geographically into the under-developed and developing economies. PayPal Holdings, Inc., Visa, Inc., First Data Corp., Naspers Ltd., and Global Payments, Inc. are the major companies in the market, competing in terms of customization, reliability, price, and technology. Their primary focus is on the development of improved online payment gateways for faster and secure transaction processes. Although international players are dominating the market, regional and foreign players such as PagBrasil and CASHU with small market shares also have a prominent presence here. The major players may strengthen their presence worldwide through the acquisition of local and regional players for expanding their services in those regions during the forecast period. The improvement of the global economic scenario combined with technological advancement in the emerging economies like Brazil, Argentina, and other under-developed countries, is likely to fuel the market growth, thereby making it an ideal time to expand online payment gateway market geographically and increase the global market share.


PayPal Holdings, Inc. is one of the prominent players in the online payment gateway market, holding 9.57% share. PayPal provides businesses with a platform enabling various payment methods for transactions. This has enabled PayPal to gain a competitive advantage in the online payment market in terms of service and user accessibility, and hence, is leading the online payment gateway market. Moreover, PayPal focuses on expanding its market reach by partnering with local banks and attracting customers to use their services. PayPal has also started offering customers with attractive offers such as cashback, using advertisements on different media platforms.


Visa, Inc. held a share of 8.66% in 2017. Visa is completely into commerce and has a huge network of consumers, merchants, financial institutions, businesses, strategic partners, and government entities. To provide its customers with an efficient online payment platform, the company has acquired Authorize.Net, a payment gateway that allows e-commerce providers to accept payments through credit cards and electronic checks directly on their site.


First Data Corp. held a share of 7.44% in 2017. First Data’s strategic acquisitions have enabled the expansion of its market reach to the countries of the Asia-Pacific region. Moreover, partnerships with e-commerce companies have provided First Data with a network full of retailers and financial institutions, enabling it to penetrate the online payment gateway market.


Naspers Ltd. held a share of 5.5% in 2017. Naspers acquired PayU to provide its users with a secure, anti-fraud payment platform. Recently, PayU launched a new platform, PayUnow, for small and medium businesses (SMBs). This new platform is expected to enable offline businesses to create an online identity with their own business page, where they can accept digital payments directly into their bank accounts.


Global Payments, Inc. held a share of 5.09% in 2017, providing its services across a variety of channels to merchants and partners in countries across the Americas, Europe, and Asia-Pacific. Acquisition of Realex Payments, one of Europe's largest and fastest growing payment gateways, has enabled Global Payments to provide omnichannel solutions that combine gateway services, payment service provisioning, and merchant acquiring across Europe.


The service providers with better technical and financial resources focus on innovation to develop highly secure payment platforms that enable users with easy-to-understand interface to stay competitive in the market. Therefore, service providers must innovate and make use of new technologies to stay abreast of the emerging technologies that could affect the continuing competitiveness of their services in the market.