Payment Processing Solutions Market Outlook - 2030
The global payment processing solutions market was valued at $39.57 billion in 2020, and is projected to reach $146.45 billion by 2030, growing at a CAGR of 13.7% from 2021 to 2030. Payment processing solutions involve handling transactions executed by customers while availing products & services in the market. It communicates and relays information from customer’s credit or debit card to both the sellers and buyers bank accounts. Moreover, the payment processing solutions are largely used by banks, financial institutions, and other related sectors to handle traditional payments more efficiently, further increasing customer loyalty and improving public service quality.
Surge in usage of smartphone and massive internet penetration across several countries, the demand for online payments is continuing to rise, and is expected to maintain its dominance in the market, which acts as a key driving force of the global payment processing solutions market. In addition, increased requirement to improve the payment process & providing customers with integrated & value-added services to maintain associated demand for the digital processing, notably contributes toward the market growth.
However, privacy & security concerns and lack of standardization for international transactions are some of the factors that limit the market growth. Furthermore, developing economies offer significant opportunities for payment processing solutions providers to expand & develop their offerings, especially among emerging economies such as Australia, China, India, Singapore, and South Korea. In addition, increased support from regulatory bodies to enhance the expansion & penetration of payment industry by executing tie-ups with e-wallets, e-commerce distribution, and other payment platforms in the market. This, as a result is expected to provide lucrative opportunities for the expansion of the payment processing solutions market in the coming years.
The report focuses on growth prospects, restraints, and trends of the payment processing solutions market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the payment processing solutions market outlook.
The payment processing solutions market is segmented on the basis of component, deployment mode, payment method, industry vertical, and region. By component, it is divided into solution and services. By deployment mode, it is bifurcated into on-premise and cloud. By payment method, the market is segmented into cards, eWallet, automated clearing house (ACH), and others. Based on industry vertical, the market is segregated into BFSI, government & utilities, IT & telecom, healthcare, retail & E-commerce, media & entertainment, travel & hospitality, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Solution Segment holds a dominant position throughout the forecast period
The report analyses top payment processing solutions companies operating in the market such as ACI Worldwide, Elavon Inc., FIS, Fiserv, Inc., Global Payments Inc., GoCardless, PayPal, Square, Inc., Stripe, and Wirecard CEE. These players have adopted various strategies to increase their market penetration and strengthen their position in the payment processing solutions industry.
COVID-19 Impact Analysis
The COVID-19 pandemic has a positive impact on the payment processing solutions industry. Various banks and fintech industries are adopting advance solutions to enhance smooth, secured, and hassle-free payments. In addition, rise in COVID-19 patients across the globe has led many businesses and individuals to adopt online payment options. Therefore, demand for payment processing solutions have increased significantly during the global health crisis.
By Industry Vertical
Retail & eCommerce segment will grow at a highest CAGR of 18.3% during 2021 - 2030
Top Impacting Factors
Rise in E-Commerce Sales
E-commerce refers to the online platform for providing products & services to the consumer directly from the business owners. A rapid increased in e-commerce has been witnessed over the past few years, owing to growth in penetration of smartphones, coupled with faster internet connectivity. Consumers are gradually opting for online purchase for a number of goods and services such as apparel & accessories, groceries, health & beauty, computer & electronics, and books, owing to ease of ordering and receiving it at one’s doorstep. This, as a result promotes the demand for hassle-free & payment processing, which therefore drives the payment processing solutions market growth.
Privacy & Security Concerns
Concerns regarding theft & security have created a lack of trust toward online payment processing among the individuals. In addition, availability of 3D secure authentication, address verification service, and incorporation of payment card industry (PCI) standard during the transaction are some of the major security issues in the minds of consumers, causing lack of trust about online payments among the public. Moreover, risk of spyware, malware, and virus attacks due to usage of numerous systems is hampering the payment processing solutions market globally.
Untapped Potential of Emerging Economies
Developing economies offer significant opportunities for payment processing solutions providers to expand their offerings as several banks & financial institutions are adopting new business models. In addition, demand for niche, secured, & customized payment processing continue to rise, which therefore accelerates the adoption of payment processing solutions in the market. High investments for digitalized payment platforms, adoption of new technologies such as artificial intelligence, analytics, big data, machine learning, & chatbots, and rapid expansion of domestic business especially among countries such as Singapore, Hong Kong, China, and South Korea are expected to create potential for the payment processing solutions providers in the market. As a result, emerging economies across Asia-Pacific are expected to create an immense opportunity to the market in upcoming years.
Asia-Pacific would exhibit the highest CAGR of 15.9% during 2021-2030
Key Benefits for Stakeholders
- The study provides in-depth analysis of the global payment processing solutions market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the global payment processing solutions market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the payment processing solutions market.
- An extensive analysis of the key segments of the industry helps to understand the payment processing solutions market trends.
- The quantitative analysis of the global payment processing solutions market forecast from 2021 to 2030 is provided to determine the market potential.
Payment Processing Solutions Market Report Highlights
By DEPLOYMENT MODE
By INDUSTRY VERTICAL
Key Market Players
STRIPE, FIS, GLOBAL PAYMENTS INC., WIRECARD CEE, ELAVON INC., PAYPAL, ACI WORLDWIDE, SQUARE, INC., FISERV, INC., GOCARDLESS
Emergence of advanced technologies such as virtual reality (VR) & artificial intelligence (AI) in the banking sector and increase in number of partnerships & investment in digitalized platforms in the development of new & innovative products are becoming major trends in the payment processing solutions industry. For instance, in October 2020, Silverflow, a renowned payment technology company, announced a $3.19 million seed investment to launch its new cloud-native card payments platform by 2021.
Moreover, during the unprecedented COVID-19 health crisis, payment processing solutions are expected to be intact by the economic downturn and the demand for these solutions is expected to remain high during the forecast period. In addition, several merchants & retailers were adaptable toward online payment technologies in their response to the challenges such as increased demand for safer & secured transactions among consumers during the global health crisis. However, a considerable number of companies perceive that they have minimum payment processing solutions exposure. This scenario is changing and 2020 has witnessed an increased in sale of payment processing solutions, owing to stringent government regulations over using cash and promoting digitalized usage of payments, which is therefore boosting the payment processing solutions market.
The payment processing solutions market is fragmented with the presence of regional vendors such as ACI Worldwide, Square, Inc., and Elavon Inc. Some of the key players profiled in the report include FIS, Fiserv, Inc., Global Payments Inc., GoCardless, PayPal, Stripe, and Wirecard CEE. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.