A Detailed Look At The State Of Global Payment Gateway Market

A service provider that acts as an intermediary between e-commerce websites and banks for payment transactions made by the customer is a payment gateway. There are three modes of payment transactions done with the help of payment gateways, namely - offline, real-time and hybrid modes.

The payment gateway market has evolved at a dizzying pace in the last few years. Any business in any sector can now collect money online through a customer preferred bank without compromising on the security of the sensitive data that is shared during the process. Integration of payment gateways has become an important aspect of any business, especially so if it’s e-commerce/online.

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You can use various methods for the transaction as well. Debit and credit cards, UPI ID, Net Banking and mobile communication transaction are some of the most commonly used methods of transaction.

Growth by region:

The leader of the payment gateway market is North America for the largest share, followed by Europe. Anticipated to be a potential market in the near future is the Asia Pacific, while the Middle East, Africa and Latin America are expected to see decent growth.

Drivers vs. Constraints:

With easy access to the internet, contactless payment solutions, mobile access to the internet and e-commerce sites, the market for payment gateways is on the high. Although, with open-source payment gateways there are a few threats like hackers and transaction limits that contribute to the constraints of payment gateways in the future market.

Companies Mentioned: 

• PayPal
• PayU Group
• Skrill Limited
• Payza
• Razorpay Software Private Limited
• Amazon Payments
• STL
• Ingenico Group
• Paytm Mobile Solutions
• Payoneer Inc.
• Cardstream
• WePay, Inc.
• VeriFone Holdings
• Bitpay
• Alipay.com
• GoCardless
• Stripe
• PayPoint
• GestPay
• NAB
• Adyen N.V.

Industry Trends and Updates:

The amount of online mobile transaction in India has increased to 6.9 Billion in 2017 from 2.9 Billion in 2016. This growth is expected to accelerate as more and more businesses integrate payment gateways to their sites. There are avenues for new players to enter the market and thus will have a positive impact on the overall growth of the payment gateway market.

The Future:

Internet of things and Artificial Intelligence has the ability to automate the whole process and these technologies are emerging with various developments making it possible in the near future. The demand for online retail will drive the payment gateway integration thus increasing the market as well.

China has penetrated into its rural areas with internet thus expanding its mobile and online payment services. This could very well put China as a dominant in the payment gateway market. However, non-bank related payments are expected to face strict rules and go through an online settlement platform for those transactions which might negatively impact the market growth in the country.