Payment Processing Solutions Market by Payment Method (Debit Card, Credit Card, ACH, eWallet), Vertical (BFSI, Retail, Healthcare, Telecom, Travel & Hospitality, Real Estate), and Region(North America, Europe, APAC, RoW) - Global Forecast to 2028
[256 Pages Report] The payment processing solutions market size is projected to grow from USD 103.2 billion in 2023 to USD 160.0 billion by 2028, at a CAGR of 9.2% during the forecast period. Governments and financial institutions globally are promoting cashless transactions to enhance transparency, combat financial crimes, and reduce the reliance on physical currency, contributing to the growth of payment processing solutions.
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Payment Processing Solutions Market Dynamics
Driver: Increasing Focus on Security and Fraud Prevention
The increasing focus on security and fraud prevention in payment processing solutions is driven by the need to build consumer trust, protect sensitive payment information, and mitigate financial risks associated with fraudulent activities. By implementing robust security measures and fraud prevention techniques, payment processors and merchants can ensure secure and reliable payment transactions, fostering customer confidence in digital payment systems.
Encryption techniques ensure that payment data is transmitted securely between the customer, merchant, and payment processor. This encryption safeguards the payment information from unauthorized access or interception by encrypting it into unreadable code. Also, Two-factor authentication adds an extra layer of security to payment processing. It requires users to provide additional verification, such as a one-time password (OTP) sent to their registered mobile device and their regular login credentials. This authentication method helps ensure that only authorized users can initiate and complete payment transactions.
Restraint: Lack of digital literacy in emerging countries
Many emerging countries still lack digital literacy, which hinders the wide-scale adoption of online and mobile payments, and in turn, negatively impacts the market growth of payment processing solutions. Digital literacy comprises a wide range of skills, such as the ability to read and make sense of the technical knowledge that helps individuals operate and make use of digital technologies. Most countries in the African continent have a very low digital literacy rate, and due to this, individuals are unable to exploit the potential of digital technologies. Technology vendors are also hesitant in making investments due to the low number of digital transactions. Hence, low digital literacy in emerging countries is expected to slow down the growth of the payment processing solutions market.
Opportunity: Global e-commerce growth
The continuous growth of e-commerce presents a significant opportunity for payment processing solutions. As more businesses establish online presence and consumers increasingly shop online, the demand for secure, seamless, and reliable payment processing solutions will continue to rise. This includes supporting various payment methods, such as credit/debit cards, digital wallets, and alternative payment options, to cater to diverse customer preferences. Also, the increasing adoption of mobile payment methods in e-commerce sector offers a substantial opportunity for payment processing solutions. With the widespread use of smartphones and the convenience of mobile apps, consumers are increasingly embracing mobile payment solutions. Payment processors that offer robust mobile payment capabilities, including in-app payments and mobile point-of-sale (mPOS) solutions, can tap into this growing market segment.
Challenge: Regulatory compliance
The payment processing industry is subject to a complex and evolving regulatory landscape. Compliance with regulations such as Payment Card Industry Data Security Standard (PCI DSS), General Data Protection Regulation (GDPR), Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) and Know Your Customer (KYC) requirements can be challenging for payment processors and merchants. Adhering to these regulations requires significant investments in infrastructure, resources, and ongoing monitoring to ensure compliance, which can pose challenges, particularly for small businesses.
Some jurisdictions have regulations requiring the localization of payment data or imposing restrictions on cross-border data transfer. Compliance with these regulations can be challenging, particularly for global payment processors that process and store data across different locations. Payment processors must navigate these regulations while ensuring data security and implementing appropriate data transfer mechanisms, such as binding corporate rules or standard contractual clauses. Non-compliance with regulatory requirements can result in significant penalties, fines, reputational damage, and legal consequences. Payment processors must establish robust compliance programs, conduct internal audits, and implement effective risk management and monitoring systems to ensure regulation adherence. They must also keep track of regulatory updates and proactively address any compliance gaps.
Payment Processing Solutions Market Ecosystem
Prominent companies in this market include a well-established, financially stable provider of payment processing solutions. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include PayPal, Fiserv, global payments, and Mastercard.
By payment method, eWallet method is expected to register higher CAGR during forecast period
eWallets have become instrumental in facilitating seamless and secure mobile payments, allowing users to make transactions conveniently using their smartphones or other mobile devices. With advanced security measures like encryption and tokenization, e-wallets instill trust in consumers and encourage the adoption of digital payment methods, fueling the demand for payment processing solutions supporting e-wallet transactions. Additionally, the rise of contactless payments, driven by e-wallets' integration with NFC technology and QR codes, further contributes to the market's growth. E-wallets have a global reach, enabling cross-border transactions and attracting businesses seeking to expand internationally. Loyalty programs and incentives offered by e-wallets also boost user engagement and drive the usage of these digital payment solutions. As e-wallet adoption continues to soar, payment processing solutions providers are incorporating e-wallet integration to meet the evolving demands of consumers and businesses alike.
Based on region, North America is the second is expected to hold the second largest market size during the forecast
The payment processing solutions market in North America is characterized by intense competition, primarily driven by the United States and Canada's strong emphasis on research and development (R&D) and innovation. North America has consistently been a global leader in payment technology and the retail and financial services sectors.
Various initiatives, including partnerships and collaborations propel the region's payment processing solutions market. In the United States, for example, strategic alliances are growing between payment processors and banks or card issuers. This collaboration is aimed at offering enhanced services to individuals and small businesses. One notable partnership between PayPal and several financial institutions enables individuals and small businesses to access their funds quickly through the Instant Transfer feature.
Market Players:
The major vendors in this market include PayPal (US), Fiserv (US), FIS (US), Global Payments (US), ACI Worldwide (US), Square (US), Mastercard (US), Visa (US), Adyen (Netherland), Stripe (US), PayU (Netherland), Jack Henry & Associates (US), Paysafe (UK), PhonePe (India), Razorpay (India), Secure Payment Systems (US), Worldline (France), Spreedly (US), Fattmerchant (US), North American Bancard (US), Dwolla (US), CCBill (US), Authorize.Net (US), Alipay (China), PayProTec (US), SignaPay (US), Klik & Pay (Switzerland), Finix Payments (US), Due (US), Pineapple Payments (US), Modulr (UK), MuchBetter (UK), Paykickstart (US), AeroPay (US), and Sila (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and product enhancements, and acquisitions to expand their footprint in the payment processing solutions market.
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Report Metrics |
Details |
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Market size available for years |
2018-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) Million/Billion |
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Segments Covered |
By payment method, vertical, and Region |
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Region covered |
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America |
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Companies covered |
PayPal (US), Fiserv (US), FIS (US), Global Payments (US), ACI Worldwide (US), Square (US), Mastercard (US), Visa (US), Adyen (Netherland), Stripe (US), PayU (Netherland), Jack Henry & Associates (US), Paysafe (UK), PhonePe (India), Razorpay (India), Secure Payment Systems (US), Worldline (France), Spreedly (US), Fattmerchant (US), North American Bancard (US), Dwolla (US), CCBill (US), Authorize.Net (US), Alipay (China), PayProTec (US), SignaPay (US), Klik & Pay (Switzerland), Finix Payments (US), Due (US), Pineapple Payments (US), Modulr (UK), MuchBetter (UK), Paykickstart (US), AeroPay (US), and Sila (US). |
This research report categorizes the payment processing solutions market to forecast revenues and analyze trends in each of the following submarkets:
Based on payment method:
- Credit Card
- Debit Card
- eWallet
- Automatic Cleaning House (ACH)
- Other Payment Methods
Based on vertical:
- BFSI
- Government And Utilities
- Telecom
- Healthcare
- Real Estate
- Retail
- Media And Entertainment
- Travel And Hospitality
- Other Vertical
By Region:
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North America
- United States (US)
- Canada
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Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Nordics
- Rest of Europe
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Asia Pacific
- China
- Japan
- India
- Australia and New Zealand
- Rest of Asia Pacific
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Middle East and Africa
- UAE
- KSA
- South Africa
- Rest of Middle East and Africa
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In June 2023, Visa acquired Pismo, to provide core banking and issuer processing capabilities across debit, prepaid, credit, and commercial cards for clients via cloud-native APIs and also provide support and connectivity for emerging payment rails, like Pix in Brazil, for financial institution clients.
- In May 2023, ACI Worldwide announced its collaboration with Red Hat OpenShift, to enable financial institutions and payment providers to utilize ACI solutions on the platform.
- In February 2022, PayPal’s investment in Skipify would allow Skipify to introduce frictionless checkout experiences for millions of shoppers and merchants alike by simplifying and streamlining the checkout process.
- In May 2022, Afterpay, a company acquired by Square, partnered with Rite Aid, to offer online shoppers to pay for everyday items in four installments at no additional cost.
Frequently Asked Questions (FAQ):
What is Payment Processing Solution?
A payment processing solution refers to a system or service that facilitates the electronic processing of financial transactions. It involves the secure transfer of funds from a customer to a merchant, typically for goods or services purchased. Payment processing solutions encompass various components, including payment gateways, merchant accounts, and back-end infrastructure that handle transaction authorization, settlement, and reconciliation. These solutions enable businesses to accept payments through various channels, such as credit cards, debit cards, digital wallets, and online banking. The primary purpose of payment processing solutions is to ensure the secure, efficient, and reliable processing of electronic payments, providing convenience for both businesses and consumers.
What is the market size of the payment processing solutions market?
The payment processing solutions market size is projected to grow from USD 103.2 billion in 2023 to USD 160.0 billion by 2028, at a CAGR of 9.2% during the forecast period.
What are the major drivers in the payment processing solutions market?
The key drivers of payment processing solutions include the growing popularity of digital payments, fueled by smartphone adoption and e-commerce growth. Advanced technologies, regulatory changes, and customer expectations for seamless experiences also contribute to the demand for secure and efficient payment processing solutions. Partnerships and collaborations further drive market growth and innovation.
Who are the key players operating in the payment processing solutions market?
The key vendors operating in the payment processing solutions market include PayPal (US), Fiserv (US), FIS (US), Global Payments (US), ACI Worldwide (US), Square (US), Mastercard (US), Visa (US), Adyen (Netherland), Stripe (US), PayU (Netherland), Jack Henry & Associates (US), Paysafe (UK), PhonePe (India), Razorpay (India), Secure Payment Systems (US), Worldline (France), Spreedly (US), Fattmerchant (US), North American Bancard (US), Dwolla (US), CCBill (US), Authorize.Net (US), Alipay (China), PayProTec (US), SignaPay (US), Klik & Pay (Switzerland), Finix Payments (US), Due (US), Pineapple Payments (US), Modulr (UK), MuchBetter (UK), Paykickstart (US), AeroPay (US), and Sila (US).
What are the opportunities for new market entrants in the payment processing solutions market?
New payment processing solutions market entrants have opportunities to tap into the growing global demand for digital payments, particularly in emerging markets. They can differentiate themselves by targeting specific industries or niche markets and leveraging advanced technologies. Strategic partnerships and a focus on delivering exceptional customer experiences can also contribute to their success in this competitive market.
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The research study involved the use of extensive secondary sources, directories, and databases, such as Factiva, D&B Hoovers, and Bloomberg, to identify and collect information useful for the comprehensive market research study on the payment processing solutions market. The primary sources were mainly industry experts from the core and related industries, preferred payment processing solutions and service providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject-matter experts, to obtain and verify critical qualitative and quantitative information, as well as to assess the prospects
Secondary Research
In the secondary research process, various secondary sources were referred to for identifying and collecting information for the study. The secondary sources included companies’ annual reports, press releases, and investor presentations, and white papers, certified publications, and articles from recognized associations and government publishing sources.
Secondary research was mainly used to obtain key information about the industry’s value chain, the total pool of key players, market classification and segmentation according to industry trends to the bottom-most level, regional markets, and key developments from market and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for the report. The primary sources from the supply side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology, and innovation directors, and related key executives from various key companies and organizations providing payment processing solutions and associated services. The primary sources from the demand side included end users, such as Chief Information Officers (CIOs), consultants, service professionals, technicians and technologists, and managers at public and investor-owned utilities. Primary interviews were conducted to gather insights, such as market statistics, data of revenue collected from the products and services, market breakups, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, deployment, and region.
The break-up of Primary Research:
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the Payment processing solutions market. The first approach involves estimating the market size by summating companies’ revenue generated through Payment processing solutions. In this approach for market estimation, we identified the key companies offering Payment processing solutions by payment methods.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the Payment processing solutions market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and break-ups have been determined using secondary sources and verified through primary sources.
Payment processing solutions Market Size: Bottom-Up Approach
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Data Triangulation
After arriving at the overall market size, the payment processing solutions market was divided into several segments and subsegments. The data triangulation procedures were used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
Payment processing refers to the processes and services that automate payment transactions between the shopper and the merchant. It is usually a third-party service that is a system of computer processes that processes, verifies, and accepts or declines credit card, debit card, or eWallet transactions on behalf of the merchant through secure internet connections.
Report Objectives
- To determine and forecast the global payment processing solutions market by payment method, vertical, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect the market growth.
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA).
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the Payment processing solutions market.
- To profile the key market players; provide a comparative analysis on the basis of business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the market.
- In the market, track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the MEA market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Payment Processing Solutions Market