According to the Market Statsville Group (MSG), the global payment gateway market size is expected to grow from USD 39,118.86 million in 2022 to USD 2,04,011.03 million by 2033, growing at a CAGR of 16.2% from 2023 to 2033. The rising demand for mobile-based payments throughout the world is driving market expansion. Increasing e-commerce sales and worldwide internet penetration are two additional important aspects that are expected to contribute to the growth of the payment gateway industry. Furthermore, the shift in merchant and customer preference to digital channels for facilitating online money transfers is expected to drive market expansion in future years. Moreover, Technology improvements and the growing pace of internet adoption throughout the world have enabled financial service companies to provide consumers with unique digital offerings. The growing popularity of mobile-based apps for money transfers is also driving up demand for online banking. Governments initiative throughout the world are working to expand access to internet services in rural regions. This has created a lot of opportunities for the upcoming period. On the other hand, the growing cyber-attacks or data privacy concerns will significantly hamper the growth of the market over the forecasting period at the global level.

Definition of the Global Payment Gateway Market

Payment gateway is defined as a server and software which transfers all information related to the online transaction to a specific bank as well as responses from the bank or information such as payment is successful or declined to consumers. It is majorly known as a mediator between banks and various e-commerce websites. This gateway acts as intermediary in-between banks and e-commerce sites. These gateways also provide some security by offering address verification and card verification. The payment gateway provides communication between the bank and online merchants.

Payment gateways that provide secure online transactions and help in the prevention of credit or debit card frauds and other illegal activity are becoming increasingly popular among businesses. Reputable payment gateways encrypt sensitive data, such as bank account information and debit or credit card details, to ensure that it is safely sent from the customer to the issuing bank. Furthermore, they free clients from the difficulties of shopping in actual stores and standing in lengthy queues. Customers may efficiently conduct online purchases, providing them with a pleasant shopping experience.

COVID-19 Impact on the Global Payment Gateway Market

The macroeconomic environment has been negatively impacted by the COVID-19 pandemic, with a greater impact on travel and events vertically. The spread of COVID-19 has also accelerated the shift from in-store shopping and traditional in-store payment methods (e.g. cash) to e-commerce and digital payments, resulting in increased customer demand for safer payment and delivery solutions (e.g. contactless payment methods). Overall, these behavioral trends have helped the payment gateway industry, including a considerable growth in net new active accounts and payments volume.

COVID-19 also had a positive impact on the growth of the market in the following months. With ease in guidelines and use of online payments services to purchase essential commodities via online channels and maintain social distancing propelled the growth of the market during the pandemic. The COVID-19 pandemic has also had an impact on consumer behavior, hastening the shift from traditional in-store shopping to e-commerce and buying online and picking up in-store, to the point where merchants are adopting safer contactless payment solutions in response to consumer demand for such options. The COVID-19 could increase both the opportunities for collaboration and competition as traditional institutions accelerate the shift toward digitization, policy measures focused on delivering support related to the COVID-19 through the banking sector could affect the competitive landscape Such factors have accelerated the growth of the market during the pandemic at global level.

Global Payment Gateway Market Dynamics

Drivers: Surging e-commerce and online retailing will drive the market growth

The E-commerce platform has its own shopping platform space online, these platforms are convenient for shoppers with several benefits attached. With the goal of providing customers a convenient and secure platform, seamless transactions, and delivery to their doorstep, the e-commerce platform requires an efficient payment gateway that will increase customer loyalty and in turn sales and profit.

Additionally, payment gateways enable easy checkout features and make online shopping as easy as possible. The easy transaction methods will also support impulsive online purchases, which will further propel the market's growth. In the e-commerce industry payment gateways integrate with the shopping cart, provide faster payment processing, accept multiple payment options, provide chargeback prevention, provide fraud management, and provide recurring billing, among others. This, in turn, contributes to the market's growth over the forecasting period.

The growing demand of e-commerce sector will further increase the demand for the payment gateways to provide smooth and flexible experience to customers and enhance their engagement.

Restraints: Increasing cyber-attacks and data privacy concerns

The growing cyber-attacks or data privacy concerns will significantly hamper the growth of the market over the forecasting period at the global level. Techniques for gaining unauthorized, inappropriate, or unlawful access to systems and information (including customer data), disabling or degrading service, or sabotaging systems are continually changing and are frequently not recognized or identified until after they have been launched against a target.

Unauthorized parties have attempted, and are expected to continue to attempt, various measures to gain access to the systems or facilities, including, but not limited to, hacking into the systems, facilities, or those of customers, partners, or vendors, and attempting to fraudulently induce users of the systems (including employees and customers) to disclose usernames, passwords, payment card information, or other sensitive information. This information may then be used to get access to the customers' personal or proprietary information and payment card data kept on or accessible through the information technology systems of the service providers and third-party partners. This will discourage users from using payment gateways solutions and restrain the growth of the market.

Opportunities: Government Initiatives for digitalization

Digital technologies are increasingly integrated into the economy and are making a significant impact in the financial industry by introducing new products, services, and providers. Hence, government is seeking it as an opportunity and had initiated various schemes to promote the digitization and use of online services. Further, the most recent landscape of the world is characterized by the intensive use of technologies, which has transformed almost all aspects of life, to a certain extent. In addition, blended information flow has enabled high efficiency and productivity and led to a high level of connectivity among countries, organizations, businesses, and individuals.

Digitalization is affecting individuals and businesses globally, with mobile money services now available in 64% of developing countries, and their spread is likely to increase hand-in-hand with the growing penetration rate of mobile connections. These significant changes increase the need for effective financial education, financial consumer protection, and financial inclusion policies that adapt rapidly to this changing environment. In parallel, the application of digital technologies to personal finance management is providing new tools to support consumers and entrepreneurs in improving their financial lives and well-being.

Scope of the Global Payment Gateway Market

The study categorizes the payment gateway market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• Online Mode
• Offline Mode

By Organizational Size Outlook (Sales, USD Million, 2019-2033)

• Large Enterprises
• Small & Medium Enterprises

By Application Outlook (Sales, USD Million, 2019-2033)

• Retail & E-commerce
• Media & Entertainment
• BFSI
• Other (Hospitality, travel)

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Retail & E-Commerce segment accounts for the largest market share by application

Based on the application, the market is divided into retail & e-commerce, media & entertainment, bfsi and other (hospitality, travel). The retail & e-commerce segment is expected to dominate the market share in 2022 in the global payment gateway market. The retail & e-commerce segment currently dominates the market share in the payment gateway market. The increasing number of online transactions in retail and e-commerce enterprises throughout the world can be ascribed to the segment's growth. According to Oberlo, a drop-shipping solutions provider, the retail industry will increase at a 3.58% annual pace from 2018 to 2022. Additionally, rising global demand for online commerce is expected to drive market development throughout the predicted period.

North America is expected to witness the largest market share by Region

Based on the regions, the global payment gateway market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. The expansion can be ascribed to technology developments and the use of payment gateways in thriving end-use areas like retail and e-commerce. The presence of key companies such as Square, PayPal Holdings Inc., Mastercard, BluePay, and Amazon Payments Inc. is also propelling regional market expansion. According to Oberlo, retail sales in the United States will increase by 2.3% in 2021 and 4.1% in 2022.

Competitive Landscape: Global Payment Gateway Market

The payment gateway market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global payment gateway market are:

• PayPal
• Stripe
• Amazon Payments
• Authorize.net
• WorldPay
• Adyen
• CCBill
• 2Checkout
• First Data
• SecurePay
• PayU
• MOLPay
• Paymill
• GMO
• Alipay
• Tenpay
• Ping++
• Paysafe
• CashU
• OneCard

Recent Development

• In February 2022, PayU announced the launch of new innovative credit solution that are now available to Romanian shoppers. The Bucharest-based online retailer eMAG is the first partner to give its consumers the option of deferring payment or paying in four installments for all categories of items in its offer or offered by merchants active on the eMAG Marketplace.
• In January 2020, PayPal Holding Inc has partnered with UnionPay International (UPI) to promote the expansion of their respective networks. As part of the agreement, PayPal has committed to supporting UPI acceptance globally, where PayPal is accepted, offering UnionPay cardholders more choice when shopping.
• In January 2020, The company is determined to launch its payment options in an untapped market and also integrated them with local payment options to build trust amongst the people.
• In July 2019, the company acquired WorldPay, an integrated technology platform. This acquisition will benefit the company. Further, it will provide technology and solutions for merchants, banks, and capital markets, this, in turn, promotes the company’s growth.
• In April 2019, Stripe announced the acquisition of Touchtech Payments. It is an Irish firm that works with banks to help them design and manage the verification process, which requires cardholders to submit two distinct forms of authentication to conduct transactions. This purchase will assist the organisation in preparing for new European legislation and improving online transaction security.

Key Issues Addressed

• What is the market size by various segmentation of the payment gateway by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the payment gateway market?
• What are the key opportunities and trends for manufacturers involved in the payment gateway supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of payment gateway in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.