The online payment gateway market is currently valued at US$ 127.45 billion in 2024. It is set to register a CAGR of 9.60% and is estimated to reach US$ 318.74 billion by 2034. The virtual payment gateway market is evolving due to high demand for IoT-based payments reinforced by technological improvements.
| Attributes | Details |
|---|---|
| Market Value for 2024 | US$ 127.45 billion |
| Market Value for 2034 | US$ 318.74 billion |
| Market Forecast CAGR for 2024 to 2034 | 9.60% |
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Demand has historically developed at a CAGR of 10.0%. However, sales are likely to slow down at a bit, displaying a CAGR of 9.60% from 2024 to 2034. This market is maturing due to increased transaction data and the popularity of other online payment methods like credit cards and mobile wallets.
| Attributes | Details |
|---|---|
| Market Historical CAGR for 2019 to 2023 | 10.00% |
High internet usage and extravagant sales through eCommerce are anticipated to propel growth in the payment gateway market. However, the market expansion is impeded by the risk of online fraud, where malicious individuals can misuse account information. Such fraudulent activities hinder the market's growth and remain an immediate concern.
The COVID-19 pandemic has positively affected the payment gateway market by increasing online payments. Despite lockdowns being enforced, the market has grown due to the rise of eCommerce. UPI's growing importance in the post-pandemic environment is anticipated to stimulate growth in the digital sector despite challenges such as cyber-attacks and inadequate internet access in remote areas.
The online payment gateway market is set to get back on track due to the emergence of eCommerce platforms and increased internet access. This is driven by high-speed internet and the demand for mobile-based payments, like for takeout and cinema tickets, with both developed and developing nations using debit or credit cards.
Principal Consultant
Adoption of QR Codes Streamlines Online Transactions
Nowadays, with the improvement of technology, most retail stores have incorporated distinctive QR codes to simplify the online payment process for consumers. Smartphones or other IoT devices can scan these codes. They allow customers to make payments easily and quickly.
The same QR codes can be used across different payment apps, meaning customers can pay for their purchases using their preferred payment service. This has increased the convenience of making payments and has subsequently led to a rise in the use of online payment gateways.
With this system, customers no longer need to carry cash or credit cards, reducing the theft risk and providing a more secure and efficient payment experience.
Online payment gateways such as Gpay, Paypal Holdings, and AmazonPay have gained immense popularity due to their cashback, rewards, and voucher schemes. These encourage customers to use these platforms.
Users also consider these payment gateways a secure medium for online transactions. In addition, online payment gateways are implementing advanced security measures like fingerprint and face scanners to enhance safety and prevent fraudulent activities.
The eCommerce Industry Pushes the Adoption of Online Payment Gateway
The payment gateway initiative is developing due to rising demand for mobile payments, internet penetration, and eCommerce sales, compelled by evolving consumer and merchant preferences.
Online payment gateways are popular for simplifying safe online transactions and preventing fraud. They encrypt sensitive data, reducing long lines and in-store purchases. Technological improvements and internet penetration rates enable financial service providers to offer innovative digital services, while smartphone apps compel the growth of eCommerce banking.
The eCommerce boom is pushing the payment gateway enterprise further, increasing demand for secure, effective solutions. Mobile commerce, operated by smartphones, requires payment gateways with robust security features like tokenization, fraud detection, and encryption to meet customer and business expectations.
Adoption of Biometric Payment Cards Spread Contactless Payment Usage
The demand for biometric payment cards is rising due to technological refinements and widespread contactless payment acceptance. Biometric cards gaining popularity over NFC cards due to their elevated transaction limits.
Consumers are increasingly adopting biometric payment cards for mobile phone unlocking and payment processing. This trend is compelled by reduced administration and increased demand for secure and efficient transactions.
Retailers can reduce administrative costs and accept conventional payment methods by using biometric payment cards, which reduces payment queues and increases adoption. Thus, biometric payment card trends create opportunities for online payment gateways.
Businesses are leveraging biometric payment cards. This is leading to numerous banks and financial institutions collaborating with biometric payment service providers to offer smart cards to their clients.
The following part offers an in-depth analysis of the different segments of the online payment gateway market. The demand for hosted payment gateways is significant, whereas the demand from large enterprises is augmenting as of 2024.
| Attributes | Details |
|---|---|
| Top Gateway Type | Hosted Payment Gateway |
| Market share in 2024 | 39.4% |
Hosted payment gateways to hold a 39.4% market share in 2024 due to the augmented application of third-party transactions.
| Attributes | Details |
|---|---|
| Top Enterprise Size | Large Enterprises (500 to 999 employees) |
| Market share in 2024 | 26.70% |
Large enterprises with 500-999 employees are increasingly utilizing online payment tools to streamline online transactions, holding a market share of 26.7% in 2024. This indicates that cashless transactions are envisioned to replace hectic brick-and-mortar payment operations.
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Based on the statistical data, industries in Germany and Japan to develop comparatively in the upcoming decade. Simultaneously, cashless payment solution industries in the United States and China are hitting the roof. ANZ’s online payment gateway sector is anticipated to climb sharply in the upcoming decade.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| United States | 9.60% |
| Germany | 5.30% |
| China | 11.70% |
| Japan | 6.00% |
| Australia and New Zealand | 9.10% |
The industry in the United States is witnessing a wave of change, showcasing a CAGR of 9.60% through 2034. This includes collaboration on improving banking technologies with the integration of chatbots and interactive platforms.
Demand for online transaction getaways in Germany is estimated to develop at a CAGR of 5.30%. Banks and finance companies are developing rigid transaction solutions in the country alongside the government.
Demand for online transactions in China is anticipated to highlight a CAGR of 11.70% between 2024 and 2034.
Japan's early technology adoption is set to lead to a 6.00% CAGR in modern eCommerce by 2034. The country is credited with inventing NFC and QR Codes as key cashless payment technologies.
Demand for remote online transactions in Australia and New Zealand is projected to develop at 9.10% CAGR by 2034 due to the province’s growth in cashless payment services sectors.
The online payment gateway market is currently experiencing a surge in popularity, and manufacturers are investing significantly in innovation, research, and development practices to uncover new applications of the BFSI industry. With technology as their aid, players focus on ensuring safety, quality, and customer satisfaction to attract a larger customer base.
Market participants are introducing new features such as automatic reminders, customized processes, seamless document production, and automated tracking to improve their digital transaction solutions.
Additionally, vendors are developing solutions that comply with various global security standards and agreement audits. Market participants are concentrating on new product development, strategic collaborations, mergers and acquisitions, and company expansions to strengthen their market position.
Recent Developments in the Online Payment Gateway Market
The market is valued at US$ 127.45 billion in 2024.
The market will be valued at US$ 318.74 billion by 2034.
In the United States, demand for payment getaways is anticipated to develop a CAGR of 9.60% through 2034.
The market is set to register a CAGR of 9.60% from 2024 to 2034.
Hosted payment gateways are anticipated to acquire a 39.4% market share in 2024.
1. Executive Summary 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Organization Size 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Organization Size, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Organization Size, 2024 to 2034 5.3.1. Large Enterprises 5.3.2. Small and Medium Enterprises 5.4. Y-o-Y Growth Trend Analysis By Organization Size, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Organization Size, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Mode of Interaction 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Mode of Interaction, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Mode of Interaction, 2024 to 2034 6.3.1. Hosted Payment Gateway 6.3.2. Pro / Self-hosted Payment Gateway 6.3.3. API / Non-hosted Payment Gateway 6.3.4. Local Bank Integration 6.3.5. Direct Payment Gateway 6.3.6. Platform-Based Payment Gateway 6.4. Y-o-Y Growth Trend Analysis By Mode of Interaction, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By Mode of Interaction, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2019 to 2023 7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2024 to 2034 7.3.1. North America 7.3.2. Latin America 7.3.3. Western Europe 7.3.4. Eastern Europe 7.3.5. South Asia and Pacific 7.3.6. East Asia 7.3.7. Middle East and Africa 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By Organization Size 8.2.3. By Mode of Interaction 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Organization Size 8.3.3. By Mode of Interaction 8.4. Key Takeaways 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Organization Size 9.2.3. By Mode of Interaction 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Organization Size 9.3.3. By Mode of Interaction 9.4. Key Takeaways 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. UK 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Western Europe 10.2.2. By Organization Size 10.2.3. By Mode of Interaction 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Organization Size 10.3.3. By Mode of Interaction 10.4. Key Takeaways 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Poland 11.2.1.2. Russia 11.2.1.3. Czech Republic 11.2.1.4. Romania 11.2.1.5. Rest of Eastern Europe 11.2.2. By Organization Size 11.2.3. By Mode of Interaction 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Organization Size 11.3.3. By Mode of Interaction 11.4. Key Takeaways 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Bangladesh 12.2.1.3. Australia 12.2.1.4. New Zealand 12.2.1.5. Rest of South Asia and Pacific 12.2.2. By Organization Size 12.2.3. By Mode of Interaction 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Organization Size 12.3.3. By Mode of Interaction 12.4. Key Takeaways 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By Organization Size 13.2.3. By Mode of Interaction 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Organization Size 13.3.3. By Mode of Interaction 13.4. Key Takeaways 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By Organization Size 14.2.3. By Mode of Interaction 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Organization Size 14.3.3. By Mode of Interaction 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2023 15.1.2.1. By Organization Size 15.1.2.2. By Mode of Interaction 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2023 15.2.2.1. By Organization Size 15.2.2.2. By Mode of Interaction 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2023 15.3.2.1. By Organization Size 15.3.2.2. By Mode of Interaction 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2023 15.4.2.1. By Organization Size 15.4.2.2. By Mode of Interaction 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2023 15.5.2.1. By Organization Size 15.5.2.2. By Mode of Interaction 15.6. UK 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2023 15.6.2.1. By Organization Size 15.6.2.2. By Mode of Interaction 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2023 15.7.2.1. By Organization Size 15.7.2.2. By Mode of Interaction 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2023 15.8.2.1. By Organization Size 15.8.2.2. By Mode of Interaction 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2023 15.9.2.1. By Organization Size 15.9.2.2. By Mode of Interaction 15.10. Poland 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2023 15.10.2.1. By Organization Size 15.10.2.2. By Mode of Interaction 15.11. Russia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2023 15.11.2.1. By Organization Size 15.11.2.2. By Mode of Interaction 15.12. Czech Republic 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2023 15.12.2.1. By Organization Size 15.12.2.2. By Mode of Interaction 15.13. Romania 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2023 15.13.2.1. By Organization Size 15.13.2.2. By Mode of Interaction 15.14. India 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2023 15.14.2.1. By Organization Size 15.14.2.2. By Mode of Interaction 15.15. Bangladesh 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2023 15.15.2.1. By Organization Size 15.15.2.2. By Mode of Interaction 15.16. Australia 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2023 15.16.2.1. By Organization Size 15.16.2.2. By Mode of Interaction 15.17. New Zealand 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2023 15.17.2.1. By Organization Size 15.17.2.2. By Mode of Interaction 15.18. China 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2023 15.18.2.1. By Organization Size 15.18.2.2. By Mode of Interaction 15.19. Japan 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2023 15.19.2.1. By Organization Size 15.19.2.2. By Mode of Interaction 15.20. South Korea 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2023 15.20.2.1. By Organization Size 15.20.2.2. By Mode of Interaction 15.21. GCC Countries 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2023 15.21.2.1. By Organization Size 15.21.2.2. By Mode of Interaction 15.22. South Africa 15.22.1. Pricing Analysis 15.22.2. Market Share Analysis, 2023 15.22.2.1. By Organization Size 15.22.2.2. By Mode of Interaction 15.23. Israel 15.23.1. Pricing Analysis 15.23.2. Market Share Analysis, 2023 15.23.2.1. By Organization Size 15.23.2.2. By Mode of Interaction 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Organization Size 16.3.3. By Mode of Interaction 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. Amazon Payments Inc. 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.2. Authorize.Net 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.3. Bitpay, Inc. 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.4. Braintree 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.5. PayPal Holdings, Inc. 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.6. PayU Group 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.7. Stripe 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.8. Verifone Holdings, Inc. 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.9. Wepay, Inc. 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.10. Adyen 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Online Payment Gateway Market
