The global payment gateway market is anticipated to grow at a significant CAGR of 15.7% during the forecast period. The shifting financial services toward the cloud is the major factor driving the growth of the payment gateway market. Numerous banks across the globe are making efforts to enter into partnerships with payment gateway service providers to offer real-time payment facilities to consumers and merchants, without any physical contact. For instance, Yes Bank had partnered with Amazon Pay and Amazon Web Services (AWS) in November 2021, to provide a real-time payment system through the Unified Payment Interface (UPI) transaction facility. Under this partnership, the UPI facility of inter-bank person-to-merchants and peer-to-peer network transactions will be provided through the Yes Bank digital payment platform. However, data privacy and cyber security is major concern that can hamper the seamless adoption of the payment gateways during the forecast period. This report will further provide an in-depth analysis of all the factors that are directly or indirectly impacting the market growth of payment gateway.

Impact of COVID-19 Pandemic on Global Payment Gateway Market

The COVID-19 pandemic had positively impacted the payment gateway market as the consumer's preference for online purchases and contactless payment had increased. Several brick-and-mortar businesses have also shifted their resources to e-commerce due to lockdown. The increase in the number of consumers flocking to digital services has spurred the payment gateway service providers to enhance their network capacity and to offer advantageously priced service packages. The COVID-19 pandemic is expected to trigger further digitalization in society and the development of policies and rules to regulate online trade which will keep the demand for payment gateway consistent during the forecast period. This report will further cover the in-depth analysis of the COVID-19 pandemic in the DRI market.

Segmental Outlook 

The global payment gateway market is segmented based on the mode of interaction and end user. Based on the mode of interaction, the market is segmented into hosted, non-hosted, local bank integrates, direct, and platform-based. Based on the end user, the market is sub-segmented into BFSI, media & entertainment, retail & e-commerce, travel & hospitality, and others. The above-mentioned segments can be customized as per the requirements.

Global Payment Gateway  Market Share by End User, 2020 (%)

The Retail & E-commerce Sector Dominates in the Global Payment Gateway Market.

The retail & e-commerce segment holds the major share in the payment gateway market. The changing consumer behavior towards a cashless economy, mobile banking, instant payments, digital commerce, and the growing impact of regulatory agencies are the key factors driving the growth of the payment gateway market in this segment. Owing to these shifting consumer trends, the retail stores and service providers globally are rapidly adopting and have integrated mobile payment applications, such as PayPal, Samsung Pay, Apple Pay, AliPay, and WeChat Pay, to accept payments. The growing e-commerce purchase will further fuel the growth of the market within this segment during the forecast period.

Regional Outlooks

The global payment gateway market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, and Others), and the Rest of the World (the Middle East &Africa, and Latin America). The market can also be analyzedfor particular region or country level as per the requirement.

Global Payment Gateway  Market Growth, by Region 2021-2027

The North American Region Holds the Major Share in the Global Payment Gateway Market.

The north American region holds the major share in the global payment gateway market attributing to the technological advancement and presence of prominent players such as Square, PayPal Holdings Inc., Mastercard, BluePay, and Amazon Payments Inc. The Asia-Pacific region is expected to fastest in the payment gateway market. The supportive government initiatives to improve the online payment infrastructure is the major factor driving the growth of the market in this region. For instance, the Reserve Bank of India (RBI) has regulated gateways such as Bharat Bill Pay, Paytm, and Mobikwik to enable effective digital payments across the nation. Similarly, the Chinese government is focusing on improving internet access in rural areas, thereby creating growth opportunities for the market.

Market Players Outlook

The major companies serving the global payment gateway market include Amazon Payments Inc., Paytm Mobile Solutions Pvt. Ltd., PayPal Holdings Inc., PayU Group, Stripe Inc., Ingenico Group, Skrill Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, Stripe had acquired Touchtech Payments in April 2019. Stripe is an Ireland-based startup that works with banks to help them build and manage the verification process, which requires the customers to provide two different forms of authentication from cardholders to process transactions. This acquisition will help the company prepare for new regulations in Europe and improve security in online transactions.

Stripe had also announced its partnership with GrabPay in May 2021, a provider of payment solutions to businesses, allowing businesses in Malaysia and Singapore to offer consumers a more convenient and rewarding online payment method through GrabPay’s e-wallet. Under this partnership, GrabPay will work with Stripe Checkout and API Integration to allow merchants to support payments in both Malaysian Ringgit and Singapore Dollar Currencies.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global payment gateway market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.