Payment Gateway Market Worth USD 81.1 Billion By 2026 - Digitalization Across the Globe Drives Payment Market During the Forecast Period
Published Date : Feb 2019
The global payment gateway market is valued USD 30.8 Billion in 2016 and is anticipated to showcase 12.9% CAGR during the forthcoming years. The market is anticipated to grow by USD 81.1 Billion by 2026.The growth is primarily driven by increasing demand for digitalization across the verticals. Also, the growing number of smartphones and internet penetration in emerging markets could serve a huge potential for payment gateway companies to tap in and provide mobile wallet services. Increase in online banking also drives the global payment gateway market.
More and more companies nowadays are reframing their business and revenue strategies towards digital approach. One reason for this is due to the adoption of digitalization by various government organizations across the world. This has led to the development of card acceptance infrastructure such as payment gateways. Therefore surge in digitalization across the globe are driving the need for more efficient and improved payment solutions, thus driving the global payment market during the forecast period.
The global payment gateway market is segmented into organization size, interaction mode, and region. Based on interaction mode, the market is bifurcated into direct payment gateway, API-hosted payment gateway, local bank integration, self-hosted payment gateway, platform-based payment gateway, and hosted payment gateway. On the basis of organization size, the market is segregated into small size, medium-size, and large enterprises. In terms of region, the global payment gateway market is bifurcated into Europe, North America, Asia Pacific, and Latin America.
The developing global payment gateway market has ignited a fierce competition among the players, who are constantly under the pressure to provide an innovative and low-cost solution to the customers. The following companies are some major players in payment gateway market are PayPal, Square, Amazon pay, Authorize.net and Klarna. The other players catering to the global payment markets are Apple pay, Google Checkout, HiperCard, Sage pay, ClickBank Payment Link, PaySafecard, 2Checkout, Braintree, GiroPay, CCBill, Worldpay, SiteLink Merchant Services, Vanco payment solutions, MercadoPago, Epoch, LawPay, Alipay, eWAY.
In May 2018, PayPal has announced an initiative to engage small and underserved businesses across the globe. There are about 19 million merchants across the globe who have small businesses and could be tapped in by payment gateway vendors. This, in turn, could be a game changer for the payment gateway vendors to acquire the majority of the market and increase the revenue.