Payment Gateway Market - Growth, Trends, and Forecast (2019 - 2024)

The Payment Gateway Market is segmented by Type (Hosted, Non Hosted), Enterprise Size (Small and Medium Enterprise (SME), Large Enterprise), End-user Vertical (Travel, Retail, BFSI, Media & Entertainment), and Geography.

Market Snapshot

Market Growth_Payment Gateway Market
Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

16.43%

Key Players:

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Market Overview

The payment gateway market is expected to register a CAGR of 16.43% in the forecast period 2019 - 2024. The integration of payment gateway has become one of the most critical aspects of any businesses in every industry. It allows collecting money through the customer preferred bank without compromising on sensitive data.

  • The internet penetration is increasing rapidly across the globe. According to ITU, 80% of the population from the developed countries have registered to access the internet in 2018. Whereas, from the developing countries only 45% population have shown the activities of accessing the internet. Cumulatively worldwide population has reached 51% for the same which is a consistent growth of over 8% year on year. Increasing internet penetration is driving the growth for a payment gateway market; especially in the developing countries.
  • Additionally, with the increasing internet penetration and awareness about the ease of online transactions, consumers are changing their preferences for making payments online. The hurdle free transactions generate confidence among the users for switching to online transactions. This rapid adoption of the online method of payment is fueling the payment gateway market growth.
  • On the other side, stringent regulations in the payment industry and the rising cases of cyber attacks and data breaches are restricting the growth to an extent.

Scope of the Report

The scope of the study for the payment gateway market has considered both hosted and non-hosted type of payment gateways for different types of enterprise and their respective applications in a wide range of industries globally.

By Type
Hosted
Non-hosted
By Enterprise Type
Small and Medium Enterprise (SME)
Large Enterprise
By End-user Vertical
Travel
Retail
BFSI
Media and Entertainment
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

Retail Segment to Grow Significantly

  • The number of online transactions globally across businesses is increasing rapidly. It is stated in the world payment report 2018 that, non-cash transactions has reached 482.6 billion in 2016, which is 9.8% growth since 2012 and is expected to follow the growing trend in the forecast period. According to retail tech news, e-commerce retailing covers almost 12% of the total retail industry. 
  • The raging demand for online retailing across the world is expected to drive the online payment, thereby, propelling the payment gateway market over the forecast period. Furthermore, the retail companies are rigorously adding payment gateway(s) to their standalone website to fuel the consumer’s order and build goodwill. For instance, BJ’s Wholesale Club, an American membership-only warehouse club, incorporated PayPal gateway for its online customers in the year 2018. This is likely to boost the market growth over the next recent years.
PayPal annual mobile payment volume

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Asia-Pacific to Witness the Fastest Growth

  • Asia-Pacific is exceptionally overshadowing other regions in terms of adoption of the online transaction. The smartphone penetration in India was 26% in 2018; and according to RBI, the mobile payment transaction volume increased by about USD 10 billion in the same year, owing to increasing internet penetration and smartphones in the country.
  • Also, China has expanded its mobile and online payment services through ascending the internet penetration in the rural areas of the country, which would not only encourage the customers to transact online but also boost the payment gateway, Alipay in particular, thereby, propelling the market growth.
Regional Growth_Payment Gateway Market

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Competitive Landscape

Currently, the market is highly consolidated by players, such as PayPal and Stripe. However, other companies are trying to cope with the market share and performing merger and acquisition to acquire more consumers.
  • Apr 2019 - Stripe announced the acquisition of Touchtech Payments. It is a startup out of Ireland that works with banks to help them build and manage the verification process, which requires the customer to provide two different forms of authentication from cardholders to process transactions. This acquisition will help the company to prepare for new regulations in Europe and to improve security in online transactions. 
  • July 2018 - Alipay expanded its payment service in London, owing to gaining acceptance and a major tourist destination. This is expected to fuel the expansion of the company’s global footprint and bring a high influx of revenue.

Major Players

  1. PayPal Holdings, Inc.
  2. Amazon Pay (Amazon.com, Inc.)
  3. Stripe, Inc.
  4. Skrill Limited
  5. PayU Group

* Complete list of players covered available in the table of contents below

Market Concentration_Payment Gateway Market

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rapidly Increasing Internet Penetration

      2. 4.2.2 Changing Preference of Users to Online Transaction

    3. 4.3 Market Restraints

      1. 4.3.1 Stringent Regulations in Payment Industry

      2. 4.3.2 Increasing Data Breaches and Cyber Attacks

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Hosted

      2. 5.1.2 Non-hosted

    2. 5.2 By Enterprise Type

      1. 5.2.1 Small and Medium Enterprise (SME)

      2. 5.2.2 Large Enterprise

    3. 5.3 By End-user Vertical

      1. 5.3.1 Travel

      2. 5.3.2 Retail

      3. 5.3.3 BFSI

      4. 5.3.4 Media and Entertainment

      5. 5.3.5 Other End-user Verticals

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 Latin America

      5. 5.4.5 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 PayPal Holdings, Inc.

      2. 6.1.2 Amazon Pay (Amazon.com, Inc.)

      3. 6.1.3 Stripe, Inc.

      4. 6.1.4 Skrill Limited

      5. 6.1.5 PayU Group

      6. 6.1.6 Adyen N.V.

      7. 6.1.7 Payza

      8. 6.1.8 Ingenico Group

      9. 6.1.9 Alipay.com Co Ltd

      10. 6.1.10 Payoneer Inc.

      11. 6.1.11 Paytm Mobile Solutions Pvt. Ltd

      12. 6.1.12 VeriFone Holdings, Inc.

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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