Payment as a Service Market Size was valued at USD 9.1 Billion in 2022. The Payment as a Service market industry is projected to grow from USD 11.29 Billion in 2023 to USD 65.53 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 24.10% during the forecast period (2023 - 2032).Increased demand for digital payment systems and rising technological upgrades are the vital market drivers expediting market’s expansion.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for payment as a service is being driven by the ever increasing demand for digital payment systems driven by increasing digitization. The rise is mostly being driven by technological advancements and rising demand for digital payment methods for online transactions. The way consumers and businesses purchase and pay for goods and services has also altered as a result of COVID-19. The role of Payment as a Service (PaaS), with a variety of business models, continues to gain significance even though banks still control the majority of the payments market area. In addition, it is anticipated that the use of machine learning and artificial intelligence in payment systems will accelerate market expansion.
The business is anticipated to increase as a result of efforts being made in numerous nations to promote digital and online transactions. The expansion of the PaaS market is also anticipated to be aided by the advent of payment networks like Mastercard, Visa, and Rupay on a scale for the processing of smooth payments for clients. In addition to offering payment gateways and solutions, PaaS also provides services like issuing e-money, merchant financing, virtual assets, and a much wider range of activities. Over the course of the projected period, these variables are expected to produce profitable growth possibilities for the sector.
Due to the expansion of e-commerce, retailers all over the world are concentrating on using digital payment technology to give customers a more frictionless shopping experience. For instance, BigCommerce Pty. Ltd., an e-commerce platform, forecasts that by 2023, the e-commerce sector would account for up to 22% of all retail sales worldwide, creating significant growth potential for the PaaS market.
Additionally, the rise in mobile shopping on smartphones, online marketplaces, and social media usage are all major contributors to the increase in consumer online purchases. The improvement of payment security and services is another priority for providers of digital payment solutions. This is frequently done via methods like bank cards and smartphones. Numerous new opportunities in this field are promised by combining blockchain technology and artificial intelligence. Thus, driving the Payment as a Service market revenue.
The Payment as a Service market segmentation, based on service includes professional, managed, and platform. The platform category was dominant. One of the main factors propelling the segment's growth is the ability of payment platforms to assist in protecting the consumer's sensitive payment information. Businesses are building digital platforms to boost sales and are increasingly concerned with enhancing their services as a result of the evolving customer-centric strategy.
The Payment as a Service market segmentation, based on vertical, includes BFSI, Retail, Healthcare, Media & Entertainment, and Hospitality. The category for retail held the largest share of revenue. Better internet access and the quick rise in online shopping on e-commerce platforms are two key drivers of the market's expansion. Retailers and online merchants can take customer payments via a variety of channels, including digital wallets, internet banking, and credit/debit cards, thanks to PaaS. Providing clients with better payment options aids shops in generating more income and improves the customer experience by providing the greatest deals and pricing. These elements are encouraging growth.
Figure 1: Payment as a Service Market, by Distribution channel, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Throughout the forecast period, North America led the market share for payments as a service. The increase in online transactions has increased the use of payment processing as a service in the area, which is attributable to the expansion in technological adoption in the payment industry.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: PAYMENT AS A SERVICE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Payment as a Service market registered for the second-largest market owing to the presence of multiple payment options and rising use of online payments. Further, the German Payment as a Service market held the fastest CAGR, and the UK Payment as a Service market was the fastest-growing market in the European region
The Asia-Pacific Payment as a Service Market is expected to grow at the fastest CAGR from 2023 to 2032. The robust activities being adopted by the governments to flourish digitalization and stimulate the adoption of digital payment technology can be blamed for regional expansion. Moreover, China’s Payment as a Service market held the largest market share, and the Indian Payment as a Service market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Payment as a Service market, grow even more. Market leaders are also undergoing a range of strategic initiatives to expand their presesnce, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Payment as a Service industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Payment as a Service industry to benefit clients and increase the market sector. In recent years, the Payment as a Service industry has offered some of the most significant advantages to medicine. Major players in the Payment as a Service market, including Total System Services (TSYS), Paysafe Group Ltd. Verifone, Ingenico, Aurus Inc., Pineapple Payments, ePay, BlueSnap Inc., PayU, Alpha Fintech, Google, Stripe, Braintree, Amazon, Skrill, Zoho Checkout, BitPay, net, WePay, and others, are attempting to increase market demand by investing in research and development operations.
An online store and web service company, Amazon.com Inc. The company sells a variety of things, including clothing, auto and industrial supplies, cosmetics, health and beauty aids, electronics, food, games, jewellery, children's and infant products, music, sports equipment, toys, and tools. Additionally, it provides online-related support services such cloud web hosting, home delivery and shipping, and other services. Amazon sells these items using online and physical platforms that it owns. Additionally, it produces and sells a range of electric devices, including Kindle e-readers, Fire tablets, Fire TVs, Echo, and other gadgets. In June 2023, AWS is introducing AWS Payment Cryptography, a new service. This service makes it easier for you to comply with various American National Standards Institute (ANSI), network, and payment card industry (PCI) standards and regulations when implementing cryptography operations to secure data in payment processing applications for debit, credit, and stored-value cards.
A subsidiary of Alphabet Inc., Google LLC (Google) offers internet search and advertising services. The corporation works on a number of industries, including enterprise and hardware products, advertising, search, platforms and operating systems, and. Google Search, Google Chrome, Google Docs, Google Calendar, Google Photos, Google Meet, Google Drive, Google Finance, Google Play Books, Google News, Google Earth, Google Ad Manager, Google Play, AdMob, Google Maps, AdSense, Gmail, Google Groups, and YouTube are just a few of the items in its portfolio of goods and services. In September 2022, The third-party "in app" payment system trial programme will be expanded by Google to include India and a few other territories. This would enable non-gaming developers to provide customers the option of a different billing system in addition to Google Play.
November 2022: To reduce payment costs, ensure acceptance, and provide incredibly flexible incentives, Nium, the platform for Modern Money Movement, introduced Nium Airline Payments (NAP), a closed-loop payments solution driven by Universal Air Travel Plan (UATP).
October 2022: Vert is a full-service supplier of banking and payment acceptance services for small and medium-sized businesses (SMEs) that was created by Deutsche Bank and Fiserv, a world leader in payments and financial services technology. Vert is the only German provider that combines traditional banking solutions with payment acceptance and processing, satisfying market demand for an integrated offering and facilitating access to cutting-edge goods for businesses of all sizes.
Professional
Managed
Platform
BFSI
Retail
Healthcare
Media & Entertainment
Hospitality
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 Size 2022 | USD 9.1 Billion |
| Market Size 2023 | USD 11.29 Billion |
| Market Size 2032 | USD 63.53 Billion |
| Compound Annual Growth Rate (CAGR) | 24.10% (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 | Service, Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Total System Services (TSYS), Paysafe Group Ltd. Verifone, Ingenico, Aurus Inc., Pineapple Payments, ePay, BlueSnap Inc. |
| Key Market Opportunities | Growing digitization and adoption of smart technologies such as AI, and IoT. |
| Key Market Dynamics | Increase in use of digital mediums for payments and market initiatives taken by leading players |
Frequently Asked Questions (FAQ) :
The Payment as a Service market size was valued at USD 9.1 Billion in 2022.
The market is projected to grow at a CAGR of 24.10% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Total System Services (TSYS), Paysafe Group Ltd. Verifone, Ingenico, Aurus Inc., Pineapple Payments, ePay, BlueSnap Inc.
The platform category dominated the market in 2022.
The retail had the largest share in the market.
Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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