Payment Gateway Market: Future Trends, Revenue Growth & Leading Players, Forecast To 2030

The global payment gateway market size was valued at USD 22.09 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.1% from 2022 to 2030.

The global Payment Gateway Market is expected to reach USD 132.24 billion by 2030, expanding at a CAGR of 22.1% from 2022 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.

Related Press Release@ Payment Gateway Market Report

Payment Gateway Market Report Highlights

• In terms of type, the hosted segment is expected to retain its dominance over the forecast period owing to features such as easy payment integration, built-in compliance capabilities, and the ability to integrate more diverse methods
• In terms of enterprise size, 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 increase their profitability by delivering better customer experiences and reducing transaction costs
• In terms of end-use, the retail and e-commerce sector dominated the market in 2021. 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 sector
• North America dominated the market in 2021 and is expected to show similar trends in the near future. Growing e-commerce sales and the rapidly changing retail market in North America are the primary factors propelling the demand for fast payment solutions in the region