NEW
YORK, July 3, 2024 /PRNewswire/ -- The global
payment gateways market size is estimated to grow by USD 11.23 billion from 2024-2028, according to
Technavio. The market is estimated to grow at a CAGR of almost
13.42% during the forecast period. High adoption
of contactless payment solutions is driving market growth, with a
trend towards emergence of NFC-based payment technology. However,
high operating and maintenance costs of PoS terminals poses a
challenge. Key market players include Adyen NV, Amazon.com Inc.,
B2Broker Ltd., BitPay Inc., Block Inc., CCBill LLC, Fidelity
National Information Services Inc., Global Payments Inc., Infibeam
Avenues Ltd., Ingenico Group SA, JPMorgan Chase and Co., Mastercard
Inc., MIH PayU BV, One97 Communications Ltd., Payoneer Global Inc.,
PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Stripe Inc.,
VeriFone Inc., and Visa Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
End-user (Large
enterprises, Micro and small
enterprises, and Mid-sized enterprises), Type
(Hosted and Non-hosted), and Geography (APAC,
North America, Europe, South America, and
Middle East and Africa)
|
Region
Covered
|
APAC, North America,
Europe, South America,
and Middle East and Africa
|
Key companies
profiled
|
Adyen NV, Amazon.com
Inc., B2Broker Ltd.,
BitPay Inc., Block Inc., CCBill LLC, Fidelity
National Information Services Inc., Global
Payments Inc., Infibeam Avenues Ltd., Ingenico
Group SA, JPMorgan Chase and Co., Mastercard
Inc., MIH PayU BV, One97 Communications Ltd.,
Payoneer Global Inc., PayPal Holdings Inc.,
Razorpay Software Pvt. Ltd., Stripe Inc., VeriFone
Inc., and Visa Inc.
|
Key Market Trends Fueling Growth
NFC technology enables data exchange between devices within a
short distance, with both requiring NFC chips. It supports one-way
and two-way communication. Retailers like Target, Macy's, and
Walgreens use NFC-based contactless pay terminals for mobile
payments, driving the growth of NFC-ready PoS terminals. In 2021,
over 40% of PoS terminals were NFC-ready. Countries such as the US,
UK, China, Canada, Brazil, and India adopt NFC-based contactless payments due
to the widespread use of NFC-enabled mobile handsets. Vendors like
Verifone offer NFC-enabled PoS terminals, contributing to the
expansion of the global payment gateways market.
In today's digital business landscape, payment gateways have
become essential tools for processing online transactions securely
and efficiently. The market for payment gateways is thriving, with
numerous providers offering various features and functionalities.
Consumers expect seamless and convenient payment experiences,
leading to the trend of integrating multiple payment methods, such
as cards, digital wallets, and bank transfers. Merchants also
demand security and reliability, driving the adoption of advanced
technologies like tokenization and encryption. Additionally, the
rise of mobile commerce and cross-border transactions is expanding
the market for payment gateways. Overall, the market for payment
gateways is dynamic and competitive, with providers constantly
innovating to meet the evolving needs of businesses and
consumers.
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Market Challenges
- The global payment gateway market growth may be hindered by the
high operating costs of PoS terminals. These costs include setup
fees, transaction charges, monthly subscriptions, and cancellation
penalties. Server-based PoS terminals are more expensive due to
their high setup costs, licensing fees, and monthly maintenance
fees. For instance, a business with a single register can expect to
pay over USD2,200 per year. The
failure of PoS terminals can also result in significant downtime
costs and revenue loss for retailers. These factors may limit the
profitability of end-users and potentially slow down market
expansion.
- Payment gateways play a crucial role in modern business
transactions. However, they come with certain challenges. Digital
transactions require security, and infrastructures must be reliable
and efficient. Merchants face challenges in integrating payment
gateways into their systems, ensuring compatibility with various
devices and browsers. Consumers expect seamless and convenient
payment experiences, but connection issues and slow processing
times can lead to frustration. Additionally, costs and fees
associated with payment gateways can impact profitability.
Coronavirus has accelerated the shift to digital payments, making
these challenges even more pressing. To address these issues,
companies must invest in robust and secure payment gateways,
prioritize user experience, and offer flexible pricing
structures.
For more insights on driver and
challenges - Download a Sample Report
Segment Overview
This payment gateways market report extensively covers market
segmentation by
- End-user
- 1.1 Large enterprises
- 1.2 Micro and small enterprises
- 1.3 Mid-sized enterprises
- Type
- 2.1 Hosted
- 2.2 Non-hosted
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Large enterprises- The payment gateways market
is experiencing significant growth due to increased transactions in
large enterprises, particularly in the BSFI, IT, and manufacturing
sectors. This expansion is driven by the adoption of
technologically advanced services like payment gateways and mobile
wallets. Cross-border banking activity is also intensifying,
leading to a higher demand for payment gateways. Modern vending
machines with contactless and card-based payments are another major
growth factor. Consequently, large enterprises, which generate the
majority of market revenue, are fueling the growth of the payment
gateways market.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
In the current digital age, payment gateways have become an
essential component of online transactions in the cashless economy.
With increasing internet penetration and consumer inclination
towards digital payments, the market for payment gateways has
witnessed record highs. These technological solutions enable secure
and cost-effective processing of sensitive financial data for
various online services, including e-commerce, merchant acquiring,
and bank apps. Payment gateways facilitate bulk transactions and
contactless payments, making them indispensable in the wake of the
coronavirus outbreak. However, the growing reliance on digital
infrastructure also poses challenges, such as cyberattacks leading
to financial losses and business interruptions. Despite these
risks, the benefits of payment gateways far outweigh the costs,
making them a crucial element of the digital payments
landscape.
Market Research Overview
The Payment Gateways market refers to the industry that provides
merchants with the ability to accept and process online payments
securely. These gateways use various technologies such as SSL
encryption and tokenization to ensure secure transactions. They
support multiple payment methods including credit cards, debit
cards, digital wallets, and bank transfers. The market is growing
rapidly due to the increasing shift towards e-commerce and
contactless payments. Consumers expect seamless and convenient
payment experiences, leading to the adoption of advanced features
like one-click payments and recurring billing. Additionally, the
integration of artificial intelligence and machine learning
algorithms enables personalized payment recommendations
and fraud detection. Overall, the Payment
Gateways market offers merchants a cost-effective and efficient
solution to manage their online transactions.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- Large Enterprises
- Micro And Small Enterprises
- Mid-sized Enterprises
- Type
-
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio