Global Payment Gateway Market Overview
The current phase of the industry is highly fragmented and consolidation is expected to drive the market. The acquisition of payment gateways Industry by payment processing companies have been on the rise. FIS’s acquisition of Worldpay, Fiserv’s acquisition of First Data, Paypal’s acquisition of Swedish fintech company iZettle are some examples where payment processing companies are acquiring newer capabilities to reach more customers and increase the volume of transactions. China has emerged as a front runner in non-cash payments with Alipay rising to the top in terms of transactions in the Chinese market. Mobile payments in China have reached more than USD Trillion until 2018. Alipay has also entered markets outside of China with collaborations with retail outlets. These partnerships are based on a shared QR code operability where mobile wallets companies in Europe will accept Alipay. This partnership was in response to the increasing number of Chinese people willing to make cashless payments when they travel outside China.
Companies like Adyen have transformed the Payment processing value chain by transforming the payment gateway business to a payment aggregator business. By doing so, companies retain the gateway, risk mitigation and merchant acquiring capabilities in house resulting in further consolidation along the value chain.
Omni Channel Payments: PSPs have begun aggregating payment methods across multiple platforms to onboard customers for merchants. Adyen and Worldpay for instance, provide merchants gateways for all types of payments – online, physical, and mobile and tablets. This provides the merchants with an overall picture of their customer data. Merchants find it useful to make decisions regarding products and value-added services when they have customer data across all channels
Global Payment Gateway Market Segmentation by Region
By Region (APAC, North America, Europe, Middle East and Africa, Latin America)
The APAC region has dominated the Global Payment Gateway Market in terms of transaction value in USD Billion. China and India have been quick to adopt alternative payment methods with mobile payments increasing in India due to UPI. China is the global leader in mobile payments with Alipay and WeChat Pay together dominating the market. Card payments are the dominant cashless payment method in North America and Europe, although mobile payment apps backed by large e-commerce and technology-oriented companies are being introduced in these regions. Banks are modernizing their payment systems by launching their own mobile payments apps.
The APAC region including China, India, Australia, New Zealand, and Southeast Asia accounts for % of the Global Payment Gateway. The rise of mobile and online payments in China and India are driving the adoption of faster payment processing companies. North America and Europe occupy % and % respectively.
By End-User Industry (APAC, North America, Europe, Middle East and Africa, Latin America)
The online e-commerce industry has seen an increase in GMV and is expected to grow to USD 4.5 Trillion by 2021. Digital payment methods have seen a huge growth due to the increase in e-commerce activity. Companies like Amazon, Alibaba, and eBay all have their own payment gateway and a local payment method along with their e-commerce platform offering. Amazon Pay, Alipay, and Paypal all began operation processing payments from their respective e-commerce partnerships. The retail segment accounted for nearly % of global payment transactions at USD Billion, growing at a CAGR of % since 2014.
Emergence and flourishing of online cab-hailing apps like Uber, Ola, GoJek among others have assisted in the growth of non-cash payments. Adyen, for example, provides payment gateway services for Uber, which has helped the rise of the company’s payment processing services. The segment accounted for the second-highest end-user segment in 2018 at nearly % totaling USD billion in transaction value, 2018
Competitive Scenario of Global Payment Gateway Market
Currently, there are more than 1,000 payment gateways as the payment processing is highly localized with payment gateways separate for separate countries. Companies with global online operations find it easier to process payment in one currency and settle in another currency. The competition stage is at the growth stage with all major players leveraging global systems to partner with local payment methods to increase transaction value. Alipay, for instance, has a top position in China, and through PayTM, has a presence in India. Adyen, has a presence around the world and supports more than 200 regional payment methods. With the government opting for open banking initiatives, there will be greater involvement of third-party developers to enter the payment processing value chain and help process payments faster.
Global Payment Gateway Market Future Projections, 2019E-2024E
The Global Payment Gateway market is expected a rise in terms of the transaction value and volume, driven by both customers and merchants. Customer’s requirements for seamless payment options will drive merchants to accept various payment methods driving PSPs to continuously innovate their services. Payment Gateway companies are expected to invest further in R&D as a percentage of sales to innovate and improve their payment processing capabilities. The large working-age population in emerging countries, the use of digital services to improve the outreach of banking facilities will assist in the adoption of mobile and online payment systems.
Key Segments Covered:-
By Region
APAC
North America
Europe
Middle East and Africa
Latin America
By End-User Industry
Retail
Transportation
Government
Banking and Financial
Telecommunications
Others (Media and Entertainment)
Key Target Audience
Existing Payment Gateways
Investors and Venture Capital Firms
Third-Party Developers
Banking and Financial Services Companies
Government Entities
Merchant Acquirers
Card Issuers
E-Commerce Sellers and Websites
Time Period Captured in the Report:-
Historical Period: 2014 -2018
Forecast Period: 2019-202
Companies Covered:-
First Data
Paypal
Worldpay
Adyen
Square
Alipay
GMO Pay
PayU
Ingenico
Authorize.net
Key Topics Covered in the Report:-
Global Payment Gateway Market
Global Payment Gateway Industry
Top Global Payment Gateway Companies
North America Payment Gateway Market
India UPI Payment Market Analysis
Indonesia National Payment Gateway Market
Authorize.Net Payment Market Share
Global Payment Aggregator Market Players
Global Cross Border Payments Market Growth
Worldpay Payment Gateway Market Analysis
Adyen Payment Gateway Market Forecast
Square Payment Gateway Market Growth Rate
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Global Payment Gateway Market Analysis
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