Payment Gateway Market: Non-Hosted Segment Is Expected To Witness Significant Growth

 Payment Gateway Industry Overview

The global payment gateway market is expected to reach USD 132.24 billion by 2030, expanding at a CAGR of 22.2% from 2023 to 2030, according to a new report by Grand View Research, Inc. Increase in online transactions, coupled with the advancements in payment methods, such as cash pooling, cashless transactions, and token systems, is expected to fuel the market growth. Moreover, rapidly increasing internet penetration across the globe is anticipated to fuel market growth over the forecast period.

Retailers and e-commerce merchants across the globe are focusing on expanding their businesses in other regions and are partnering with payment service providers. These partnerships are allowing merchants to benefit from the opportunities generated by the globalization of the e-commerce sector. Payment gateways help merchants that manage a large volume of transactions automate the complete money transfer process with faster processing speed and error-free computations.

The financial service providers focus on incorporating technologies such as Artificial Intelligence (AI) and Machine Learning (ML) in their payment gateway systems for process automation and fraud detection. Financial service providers are also focusing on developing innovative payment gateway solutions for merchants. For instance, in October 2021, Pine Labs, a software development company, announced the launch of Plural, a payment gateway platform, to offer merchants an integrated solution for all kinds of payments.

The COVID-19 pandemic has positively impacted the market owing to changing consumer preference toward online shopping. Numerous e-commerce vendors are developing their payment gateway systems combined with eWallet services. This development is mostly identified among merchants handling a large volume of transactions. Moreover, e-commerce vendors also saw an increase in their sales during the pandemic. For instance, Amazon.com, Inc. saw a 40% year-on-year growth in the second quarter of 2020 due to an increase in online grocery sales.


Payment Gateway Market Segmentation

Grand View Research has segmented the global payment gateway market based on type, enterprise size, end-use, and region:


Based on the Type, the market is segmented into Hosted, and Non-hosted.

  • The hosted segment dominated the market in 2022 and accounted for more than 57.0% share of the global revenue. The demand for hosted payment gateways is increasing among merchants due to factors such as easy payment setup systems and reduced merchant liability. These factors ensure that third-party payment service providers handle the entire transaction process and provide enhanced security and data protection. 
  • The non-hosted segment is expected to witness significant growth over the forecast period. Various merchants across the globe prefer a non-hosted payment gateway for their website as they can retain control over the whole checkout process, including the layout and design process while providing a seamless shopping experience to the customers.


Based on the Enterprise Size, the market is segmented into Hosted, and Non-hosted.

  • Large enterprises tend to have higher customer visits on their website and hence need to deploy effective solutions for their customers during the checkout process. Payment gateway solutions can ensure a convenient checkout process for customers by supporting various digital payment methods, including net banking and credit or debit cards.
  • The small and medium enterprises segment is anticipated to register the highest growth over the forecast period. Small & medium enterprises are turning to payment gateways for faster payment processing and offering increased convenience to customers. Several small and medium enterprises are restructuring their revenue strategies and businesses by adopting a more digital approach. 

 


Based on the End-use, the market is segmented into BFSI, Media & Entertainment, Retail & E-commerce, Travel & Hospitality, Others.

  • The segment growth can be attributed to the rising number of online transactions in retail and e-commerce businesses across the globe. According to Oberlo, a drop-shipping solutions company, the retail industry is expected to grow at an average annual rate of 3.58% from 2018 to 2022. Furthermore, the increasing demand for online retailing across the globe is anticipated to fuel market growth over the forecast period.
  • The BFSI segment is expected to witness significant growth over the forecast period. The BFSI sector is widely adopting payment gateway systems as they provide an end-to-end ecosystem for financial services. Financial companies are challenged with complex cash flows where cash is collected from numerous sources and routed to various accounts.

 


Key Companies & Market Share Insights

Vendors in the market are focusing on acquisitions and extending their product and service portfolios in untapped industries. For instance, in October 2020, Stripe, a financial service company, announced the acquisition of Paystack, an online payment processing company. Paystack operates in Nigeria and has plans to expand across South Africa. Paystack works independently and has embedded the services of Stripe with its offerings. Through this initiative, Stripe has expanded its presence in Africa.

Security concerns related to online payments are encouraging service providers to adopt advanced technologies and solutions to curb fraudulent activities. New product developments and collaborations are some of the key strategies adopted by players to gain a competitive edge in the market. For instance, in May 2021, Stripe announced its partnership with GrabPay, 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 the partnership, GrabPay worked with Stripe Checkout and API Integration to allow merchants to support payments in both Malaysian Ringgit and Singapore Dollar Currencies. Some of the prominent players operating in the global payment gateway market are:

  • Adyen
  • Amazon Payments Inc.
  • Net
  • Bitpay, Inc.
  • Braintree
  • PayPal Holdings, Inc.
  • PayU Group
  • Stripe
  • Verifone Holdings, Inc.
  • Wepay, Inc.

 

Order a free sample PDF of the Payment Gateway Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

Contact:

Sherry James

Corporate Sales Specialist, USA

Grand View Research, Inc.

Phone: 1-415-349-0058

Toll Free: 1-888-202-9519

Email: sales@grandviewresearch.com

Web: https://www.grandviewresearch.com

Follow Us: LinkedIn | Twitter

Comments

Post a Comment

Popular posts from this blog

Smart TV Market Contributing To The Growth Of The Segment By 2028

  Smart TV Industry Overview The global smart TV market demand stood at 268.9 million units in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 20.8% from 2021 to 2028. A continuous surge in the use of streaming devices, coupled with the rising internet penetration is driving the market growth. Moreover, the shift in consumer preference in recent years has significantly contributed to revenue generation. The accelerated demand for smart TVs has paved way for lucrative opportunities for content providers to venture into the Over the Top (OTT) space, which is allowing them to distribute original content via the internet. Also, numerous industry players are collaborating with streaming media player manufacturers to expand their portfolio and enhance their visibility. All these factors are projected to contribute to market growth in the near future. Gather more insights about the market drivers, restrains and growth of the Global Smart TV Market The indus...
Read more

Fire Safety Equipment Market: Residential Segment Is Expected To Register The Highest CAGR

  Fire Safety Equipment Industry Overview The global  fire safety equipment market  size is expected to reach USD 82.02 billion by 2028, registering a CAGR of 6.4% over the forecast period, according to a study conducted by Grand View Research, Inc. Strict government regulations and mandates concerning workplace safety are expected to be the key factors driving the market growth. Factors such as the increasing awareness about the benefits of installing fire safety and security equipment and demand for state-of-the-art fire protection equipment are also expected to fuel the market growth.   The transition toward the installation of technologically advanced fire detection systems and eco-friendly fire suppression agents is also expected to support the market development over the forecast period. The advent of smart fire suppression and detection systems, the proliferation of the  Internet of Things  (IoT) for the wireless integration of such systems, enfor...
Read more

Webcam Market Size Worth $18.1 Billion By 2028 | CAGR: 12.9%

  Webcam  Industry Overview The global webcam market size was valued at USD 6.85 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.9% from 2021 to 2028. The growing demand for real-time monitoring devices in residential locations, commercial and logistics security, and video conferencing is expected to drive market growth over the forecast period. Webcams are also seeing significant demand among temporary surveillance appliance manufacturers to record anti-social behavior, vandalism, fly-tipping, and detect criminals misusing public property. Webcams are video cameras used to capture real-time images or videos in the form of analog or digital signals. Present-day products are technologically advanced and they offer better streaming quality, resolution, frame rate, built-in microphones, and noise cancellation, among others. Owing to the vast advancements, webcams are being increasingly deployed in numerous applications including video con...
Read more