The Emergence of Artificial Intelligence Coupled with Growth in the Software Market is Driving the Growth of the Global ePayment System Market
The global ePayment system market is estimated to be driven by technical advancements in the software industry, and the growth of e-Commerce in developed and developing nations. The adoption of ePayment systems is growing rapidly, and, in the coming future, it will create potential opportunities for ePayment system providers. Consumers across prominent regions such as Western Europe and North America, and some countries in Asia Pacific, are using various digital payment methods.
Furthermore, increasing Internet banking and Internet shopping have significantly pushed the use of ePayment system across the globe. ePayment systems have grown increasingly over the last few decades, due to the spread of Internet technologies. As the world advances more with technology development, it is creating the demand for ePayment systems.
In this report, FMI has segmented the global ePayment system market on the basis of product type, payment mode, and region. By product type, the ePayment system market is sub-segmented into software platforms and services. The software sub-segment is anticipated to register high growth during the forecast period in the ePayment system market, owning to increasing deployment of cloud-based solutions across the globe.
In parallel, the software sub-segment in the ePayment system market is also projected to register a double digit growth rate during the forecast period. Furthermore, rapid expansion of the e-Commerce sector, along with increasing consumer demand for a quick, easy, secure, and streamlined shopping experience are the major factors which are impelling the growth of the software sub-segment in the global ePayment system market.
Cloud Computing Technology is Significantly Contributing to the Growth of the ePayment System Market
In addition, the increasing growth of consulting services for software and cloud computing is a factor driving the growth of the services sub-sub segment in the ePayment system market. In the recent past, it has been observed that, most companies are focusing on consulting services before the deployment of any enterprise solution. Such factors are expected to propel the growth of the global ePayment system market in the near future.
On the basis of payment mode, the global ePayment system market is sub-segmented into credit cards, e-wallets, debit & other cards, bank transfer, cash on delivery, and other modes.
The credit cards sub-segment is estimated to dominate the overall ePayment system market, owing to robust expansion of plastic money in various countries such as India, China, Japan, U.S., France, Spain, and others. In addition to this, financial organizations are shifting their focus from general payment methods to digital payment methods. As such, the credit cards sub-segment will also create potential growth opportunities for players in the ePayment system market.
In parallel, the emergence of new financial technologies is supporting the growth of the bank transfer sub-segment in the ePayment system market. Due to such innovations, the bank transfer sub-segment is also expected to create potential opportunities for ePayment system providers during the forecast period in the ePayment system market. Furthermore, the cash on delivery sub-segment is projected to grow at a moderate CAGR. Massive growth of the e-Commerce market in most developing and developed nations is driving the global ePayment system market.
However, in-store payments have driven the adoption of mobile wallets to a large extent. Mobile wallet providers are now transforming into mini banking institutions, and are likely to acquire banking licenses in the coming years, which is remunerative considering the agenda of governments regarding financial inclusion.
Mobile wallet providers are concentrating on leveraging the landscape of remittances in countries such as India and BRIC nations, for increasing the reach of their businesses. These factors are projected to surge the growth of the ePayment system market, globally.
The Provision of Cashless Transactions is Expected to Propel the ePayment System Market in North America
On the basis of geography, North America is expected to dominate the global ePayment system market, due to the increasing penetration of mobile wallets in the U.S. and Canada. The provision of cashless transactions is expected to propel the ePayment system market in North America. Moreover, the region has witnessed technological advancements in terms of financial technologies coupled with digital technologies in the past couple of years.
These factors are fuelling the growth of the ePayment system market in North America. The APEJ ePayment system market is expected to be among the target markets for ePayment system participants. Massive growth of the e-Commerce market and government initiatives for digital transactions are the key factors which are towering the growth of the ePayment system market in APEJ countries. Latin America is estimated to grow at a moderate CAGR over the forecast period in the global ePayment system market.
Due to the massive growth of smartphone devices and the rising mobile commerce market in MEA, this region is projected to grow at a high CAGR in the ePayment system market. Rising consumer preference towards mobile banking is expected to be a factor that is enhancing the demand for ePayment in MEA.
Global ePayment System Market: Competition Analysis
According to FMI analysis, long-term contracts with business partners are likely to increase revenue, and new innovation strategies are estimated to enable ePayment system vendors to reach new growth markets. The global market for ePayment systems is witnessing a trend of mergers and acquisitions, thereby leading towards consolidation of the market.
For example, an ETA member, Stripe, which is an e-Commerce firm, has recently announced its acquisition of Payable, following two years of partnership for streamlining the tax reporting process for merchants. Another ETA member, Ingenico, which is a French payments tech company, has agreed to acquire its Swedish rival Bambora, with an aim of expanding its digital transaction capabilities.
Some of the key players in the global ePayment system market include MasterCard, Inc., PayPal Holdings, Inc., Visa, Inc., Ant Financial Services Group, China Union Pay Company Limited, World pay Group Plc., One97 Communications Limited, Alphabet, Inc., M-Pesa Holding Co Limited, Stripe Inc., and other key players.
Key Developments by Vendors in the Global ePayment System Market
- In November 2017, MasterCard provided the Verifone M/Chip Fast technology, enabled with a unique code with tap to pay for all transactions, which will be helpful during peak holiday shopping seasons. In May 2017, the company also entered into a partnership with Zain, to launch mobile wallets in Jordan.
- In December 2017, Worldpay, a global leader in payments, announced that it will partner with Klarna, a leader in invoice and credit-based payments, to further enhance its product portfolio. Worldpay customers trading in Austria, Finland, Germany, the Netherlands, Norway, Sweden, and the United Kingdom, and wishing to accept payments on invoices or instalments, will be able to use Klarna’s invoice and credit-based payments from Worldpay. This will help e-Commerce businesses to improve conversion rates by up to 20%, and provide a fast and smooth checkout process.
- On July 25, 2017, AGTech Holdings Limited entered into a joint venture (JV) agreement with One97 Communications Ltd. AGTech Holdings will hold a 45% stake in the JV, while Paytm will hold the remaining. As part of the agreement, Paytm will invest US$ 8.8 million and AGTech Holdings US$ 7.2 million in the new venture.
Key Segments
By Product Type
- Software Platforms
- Services
By Payment Mode
- Credit cards
- E-wallets
- Debit & Other Cards
- Bank Transfer
- Cash on Delivery
- Other Modes
Key Regions :
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Western Europe
- Germany
- France
- U.K.
- Spain
- Italy
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- Rest of Eastern Europe
- APEJ
- China
- India
- Australia & New Zealand
- ASEAN
- Rest of APAC
- Japan
- MEA
- GCC Countries
- Turkey
- South Africa
- North Africa
- Rest of MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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