Dublin, July 29, 2021 (GLOBE NEWSWIRE) -- The "Payment Gateway Market Size, Share & Trends Analysis Report by Type (Hosted, Non-hosted), by Enterprise Size, by End Use (BFSI, Retail & E-commerce), by Region and Segment Forecasts, 2021-2028" report has been added to ResearchAndMarkets.com's offering.
The global payment gateway market size is expected to reach USD 87.44 billion by 2028, registering a CAGR of 21.7% from 2021 to 2028.
The market growth can be attributed to the increasing use of payment gateway methods for online shopping across the globe. The shift in consumers' and merchants' preference toward digital channels for money transfer has also been instrumental in propelling the market growth.
Most companies are opting for payment gateways as they allow secure internet transactions. This helps them prevent debit or credit card scams and other fraudulent activities. Additionally, gateway services provide consumers with access to online sellers across the world, thereby allowing merchants to efficiently increase their customer base.
Payment gateways enable merchants to automate the complete money transfer process with faster processing speed and error-free computations. Moreover, they eliminate the need for consumers to deal with the hassles of shopping from physical stores and waiting in long queues. Consumers can effectively complete their entire transaction online, thus offering them a seamless shopping experience.
The growing trend of digitalization and the high adoption rate of numerous online money transfer modes, including net banking and mobile wallets, are anticipated to propel market growth over the forecast period. The advent of applications that are compatible with different smartphones to enable online money transfer is also contributing to the market growth. Additionally, factors such as the merging of numerous e-commerce sites with gateway platforms, partnerships of banks with online retailers and attractive cashback offer on online payments are expected to offer growth prospects for the market over the forecast period.
The global COVID-19 pandemic has resulted in the rising use of contactless payment methods for making transactions in drug and grocery stores. According to a study conducted by Mastercard in 2020, 79% of people worldwide use contactless payment methods, citing hygiene and safety measures as the key drivers.
Moreover, the pandemic has accelerated the growth of digital technology and e-commerce. Fintech company stocks have garnered significant attention as the digital payment platforms impact payment networks, e-commerce, business-to-business payments and others.
Payment gateway companies are, thereby, witnessing an increase in funding. For instance, in March 2021, Stripe-a payment gateway company-was valued at USD 95 billion after its USD 600 million funding round. In the wake of the pandemic, around 200,000 companies signed up on Stripe, making the value of the company reach an estimated USD 115 billion by 2021.
Payment Gateway Market Report Highlights
The hosted segment is expected to continue its dominance over the forecast period owing to the features such as easy payment integration, built-in compliance capabilities and the ability to integrate more diverse methods
The small and medium enterprise segment is expected to witness significant growth over the forecast period. Payment gateways are used by small and medium enterprises to significantly uplift their profitability by delivering a better customer experience and reducing transaction costs.
The retail and e-commerce sector dominated the market in 2020. Factors such as better shopping experience and increased smartphone penetration are expected to increase the adoption of payment gateway systems in the retail and e-commerce segment
North America dominated the market in 2020 and is expected to showcase similar trends in the forthcoming years. The growing e-commerce sales and rapidly changing retail market in North America are the primary factors propelling the demand for fast payment solutions in the region. This, as a result, is fueling the regional market growth
Amazon Payments Inc.
PayPal Holdings Inc.
Verifone Holdings Inc.
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