Innovation and Digitalization Are Set to Enable New Possibilities in the Payment Gateways Market

Other important factors expected to drive the market growth for payment gateway are rising e-commerce sales, and global internet penetration. The market will continue to grow due to the shift in consumer and merchant preference toward digital channels that allow online money transfers.

According to Market.us, “The Payment Gateways Market is projected to reach a valuation of USD 115.27 billion by 2032 at a CAGR of 17.8%, from USD 22.4 billion in 2022.”

Asia-Pacific will have the largest market share over the forecast period due to the growth in smartphone usage in Asia and the presence of emerging economies such as India, China, and South Korea. E-commerce is also growing rapidly in India and other countries. The growing demand for payment gateway solutions is fuelling the growth of this market. Many people prefer shopping online to going to shops.

Anurag Sharma, a senior research analyst at Market.us, said, “The Global Payment Gateways Market is seeing positive growth due to the increasing use of digitalization, as well as the adoption rate for various online payment methods such as debit and credit cards, mobile wallets, and net banking.”

Due to an increase in e-commerce transactions and the rise of online shopping platforms, the COVID-19 pandemic had a positive effect on the payment gateway market. During the pandemic, electronic peer-to-peer transactions and consumer-to-business payments have been very popular.
Payment gateways are becoming more important for companies as they provide secure internet transactions that help to prevent fraudsters from using debit or credit cards.

Secure payment gateways that are reliable encrypt sensitive information like bank account details, and debit or credit numbers, to ensure that information is securely transferred from the customer to the issuing banks. They also eliminate the need to go to physical stores or wait in long lines. Online shopping is easy for consumers to complete and enjoy seamless shopping.

Financial service providers have been able to offer new digital services thanks to technological advancements and rapid internet penetration worldwide. Internet banking is also growing in demand due to the popularity of mobile-based applications for money transfers. Globally, governments are working to increase access to internet services in rural areas.

In 2020, the British government invested USD 5.9 Billion in rural areas of the country to provide broadband services. Due to the USD 606.3 million investments made by the government in 2020 for the shared rural mobile network project, 95% of rural areas will be able to get 4G coverage.

E-commerce companies have partnered with payment service providers in order to provide a digital payment infrastructure for merchants and customers. Merchants handle a lot of transactions. This has led to the integration of gateway systems in their sales channels.

In July 2021, PayU announced its partnership with WooCommerce. WooCommerce is a customizable e-commerce platform that allows WooCommerce merchants to integrate payment gateway services and digital payment infrastructure. Merchants will benefit from this partnership, which offers them contactless payment solutions that scale profitability and growth, special pricing for transactions, and no hidden fees.

Many banks around the world are also looking to partner with payment gateway providers in order to provide real-time payment services to merchants and consumers. In November 2021, Yes Bank announced a collaboration with Amazon Pay (AWS), in order to offer a real-time payment system via the Unified Payment Interface transaction facility (UPI). UPI and Amazon Pay collaborate to facilitate interbank transactions between person-to-merchants and peer-to-peer networks through the Yes Bank digital payments platform.

In 2021, the large enterprise market dominated and accounted for more than 56.0% of global revenue. Larger enterprises are more likely to have customers visiting their websites. Therefore, they need to provide effective solutions to their customers during checkout. Customers can use payment gateways to make it easy to pay for their purchases.

They can also be used for net banking, credit cards, or debit cards. These businesses also require a secure and safe method of transacting, which payment gateways facilitate. Trustworthy payment gateways employ industry-standard encryption to protect sensitive merchant and customer data.

In the end, Market.us concludes, “The retail and e-commerce segment dominated in 2021, accounting for over 25% of global revenue. This segment growth can be attributed largely to the increasing number of online transactions in both retail and e-commerce businesses around the world.”