Payment Gateway Market Size was valued at USD 22.3 Billion in 2022. The payment Gateway market industry is projected to grow from USD 27.3 Billion in 2023 to USD 138.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.50% during the forecast period (2023 - 2032). The quick growth of internet shopping and the rise in online transactions are the key market drivers boosting the expansion of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Market CAGR for payment Gateway is being driven by the rising number of e-commerce industry's explosive. The increasing demand for mobile-based payments is the reason for the market's rise. The internet penetration rate and increasing e-commerce sales are two more important aspects that are expected to fuel the expansion of the payment gateway industry. The industry is expected to develop in the upcoming years due to the movement in merchant and client preferences toward digital channels for online money transfers.
Additionally, Payment gateways that offer safe online transactions and aid in preventing credit or debit card fraud and other illicit activity are in greater demand from businesses. To guarantee that sensitive data is delivered securely from the consumer to the issuing bank, reputable payment gateways encrypt data, including debit or credit card numbers and bank account information. Additionally, they relieve customers of the inconvenience of dealing with lengthy lines and in-store purchasing. Online shoppers can easily finish the full transaction and have a flawless purchasing experience. Financial service providers may now supply customers with innovative digital services thanks to technological breakthroughs and the world's fastest internet penetration rate. Internet banking is also being driven by the growing popularity of Smartphone apps for money transactions.
The payment gateway industry is significantly driven by the quickening pace of e-commerce boom. The need for safe and effective payment processing solutions grows as more companies and customers conduct their business online. Mobile commerce (m-commerce) has become more popular due to the widespread use of smart phones and other mobile devices. To meet the expectations of mobile shoppers, payment gateways that provide smooth mobile payment solutions are in high demand. Concerns about payment processing security have increased along with the volume of online transactions. Both customers and businesses want payment gateways with strong security features including tokenization, fraud detection/prevention, and encryption.
For instance, the World Health Organization (WHO) estimates 95% of the country's rural areas were expected to receive 4G coverage in the coming years due to the USD 606.3 million investments made by the government in 2020 in the shared rural mobile phone network project. The British government invested USD 5.9 billion in 2020 to provide fast broadband services in the country's rural areas; demand for payment Gateway supplements will increase due to the e-commerce industry's explosive. Thus, result in driving the payment Gateway market revenue.
The payment Gateway market segmentation, based on type includes Hosted, Non-hosted. The hosted segment dominated the market. Because hosted payment gateways provide merchants decreased merchant liability and simple payment setup processes, merchant demand for these solutions is rising. These elements provide improved security and data protection, as well as the handling of the complete transaction process by third-party payment service providers. Additionally, by using hosted payment gateways, businesses can lower fraudulent activity and concentrate on their core competencies.
Figure1: Payment Gateway Market, by Type, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The payment Gateway market segmentation, based on Enterprise Size, includes Large Enterprises, Small & Medium Enterprises. The large enterprises generated the most income. Because large businesses need to implement efficient solutions for their clients throughout the checkout process because they often receive larger traffic from users on their websites. By accepting a number of digital payment options, such as credit or debit cards and net banking, payment gateway solutions may guarantee a simple checkout process for clients.
The payment Gateway market segmentation, based on End-use, includes BFSI, Media & Entertainment, Retail & E-commerce, Travel & Hospitality, Others. The Retail & E-commerce generated the most income. Due to The increasing volume of online transactions in retail and e-commerce enterprises is responsible for the segment growth. The market for online payment gateways is being driven by growing consumer and retailer demand for simple, one-step payment processes. Furthermore, because they can be used from anywhere in the world at any time, internet payments provide a hassle-free experience and are incredibly convenient.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American payment Gateway market area will dominate this market, owing to and the need for effective payment gateway solutions to enable safe and smooth online transactions is fueled by the e-commerce industry's will boost market growth in this region.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: PAYMENT GATEWAY MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe payment Gateway market has the second-largest portion of the market due to influence to incorporate a variety of payment methods into their platforms by consumers' preferences. Further, the German payment Gateway market had the biggest market share, and the UK payment Gateway market was the fastest growing market in the European region
The Asia-Pacific Payment Gateway Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. This is due to expanding awareness of a to encourage economic growth and financial inclusion. Moreover, China’s payment Gateway market had the biggest market share, and the Indian payment Gateway market was the fastest growing market in the Asia-Pacific region.
Leading market players are putting a lot of money on R&D to expand their product lines, which will help the market for weight reduction products grow. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. to grow and endure in an increasingly cutthroat and dynamic market, payment Gateway industry must provide reasonably priced goods.
Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the payment Gateway industry to help customers and expand the market segment. In recent years, the payment Gateway industry has provided some of the biggest benefits to medicine. Major players in the payment Gateway market, including Adyen; Amazon Payments Inc.; Authorize.Net; Bitpay; Inc.; Braintree; PayPal Holdings, Inc.;., and others, are attempting to increase market demand by investing in research and development operations.
Adyen is a Dutch payment provider that has the standing of an acquiring bank, enabling companies to take payments via point-of-sale, mobile, and e-commerce. It is traded on the Euronext Amsterdam stock exchange. Adyen provides online services to businesses so they may take electronic payments via wire transfers, credit cards, debit cards, and real-time bank transfers through online banking. It links retailers to various payment options, such as foreign credit cards, regional cash-based systems, and mobile payment systems. In November 2022, Adyen, a worldwide financial technology platform, has become an additional payments gateway processing partner with Instacart, the top grocery technology business in North America. As part of the new alliance, Instacart would make use of Adyen features, such as transaction PINless debiting.
PayPal Holdings, Inc. is a financial technology business based in the United States that operates an online payments system in most countries that allow online money transfers. It functions as an electronic substitute for conventional paper-based methods including money orders and cheques. The business charges a fee for its services as a payment processor to numerous commercial users, including auction sites and online retailers. Initially released as Concinnity in 1998; PayPal went public in 2002 with an IPO. Later that year, eBay acquired it as a completely owned company, and it was valued at $1.5 billion. 2015 saw eBay separate PayPal and return it to its owners, regaining its independence. In January 2020, In an announced alliance, Union Pay International (UPI) and PayPal Holding Inc. will work together to speed up the growth of their respective networks. PayPal committed to supporting UPI adoption everywhere PayPal is accepted as part of the arrangement, providing UnionPay cardholders with additional shopping choices.
September 2022: As a complement to its in-app and QR code-based UPI Payments service, leading provider of the Unified Payments Interface (UPI), PhonePe is aiming to introduce its own payments gateway. The gateway is anticipated to go live in 2023's first quarter.
January 2020: It will purchase the majority of the digital credit platform Pay Sense. As part of the transaction, two of PayU's consumer lending businesses, Lazy Pay and Pay Sense, will combine their operations to provide a full-stack digital lending platform in India.
April 2019: This Irish company helps banks design and run the verification process, which requires two different types of card authentication to be provided in order to finish a transaction. The company will be more prepared to abide by EU regulations and conduct safe online transactions as a result of the acquisition.
Hosted
Non-hosted
Large Enterprises
Small & Medium Enterprise
BFSI
Media & Entertainment
Retail & E-commerce
Travel & Hospitality
Others
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size2022 | USD 22.3 Billion |
| Market Size 2023 | USD 27.3 Billion |
| Market Size2032 | USD 138.5 Billion |
| Compound Annual Growth Rate (CAGR) | 22.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, enterprise size, end-use, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled | Adyen; Amazon Payments Inc.; Authorize.Net; Bitpay; Inc.; Braintree; PayPal Holdings, Inc.; PayU Group; Stripe; Verifone Holdings, Inc.; Wepay, Inc. |
| Key Market Opportunities | The quick growth of internet shopping |
| Key Market Dynamics | Increase in the rise in online transactions |
Frequently Asked Questions (FAQ) :
The size of the worldwide market for payment Gateway was estimated at USD 22.3 billion in 2022.
The market is projected to grow at a CAGR of 22.50% during the forecast period, 2023-2032.
In the market, North America accounted for the greatest share.
The leading companies in the industry include Adyen; Amazon Payments Inc.; Authorize.Net; Bitpay; Inc.; Braintree; PayPal Holdings, Inc.; PayU Group; Stripe; Verifone Holdings.
The Hosted dominated the market in 2022.
The Retail & E-commerce had the largest share in the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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