Payment Processing Solutions Market Size, Share & Trends Report

Payment Processing Solutions Market Size, Share & Trends Analysis Report By Payment Method (Credit Card, Debit Card, E-wallet), By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: May, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-240-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global payment processing solutions market size was valued at USD 33.45 billion in 2019 is expected to grow at a compound annual growth rate (CAGR) of 14.5% from 2020 to 2027. The market growth can be attributed to high penetration of smartphones and adoption of mobile payment applications. The smartphone applications are providing alternative billing options to customers with the help of card-reader attachments and services. These applications have enabled customers to make faster and easier billing transactions.

U.S. payment processing solutions market size

Increasing preference of customers for online shopping has compelled retailers to opt for payment processing solutions. These solutions help retailers to curb the risk of fraudulent transactions and improve customer service. Payment processing solutions are using machine learning and Artificial Intelligence (AI) technologies, which are acting as an anti-fraud tool. Furthermore, these solutions can be easily integrated with the Point of Sale (POS) systems, thereby propelling the market growth.

Various factors such as evolving customer expectations, technological advancements, and robust infrastructure are expected to create growth opportunities for the market. Supportive government policies and initiatives to promote digital transactions are anticipated to fuel market growth over the forecast period. For instance, the Indian government launched the ‘Digital India’ campaign in 2015 to promote the adoption of digital transactions. This initiative has boosted the adoption of payment processing solutions in the country.

Customer’s demand for immediacy of settlements and payments is expected to majorly contribute to the market growth. The convenience and speed of online shopping have altered customer expectations about the immediacy of payment experience. Customers are expecting faster transaction services from all the sectors. Moreover, smartphone technology has allowed customers to access an ever-expanding range of services through mobile apps.

However, numerous factors such as lack of digital literacy in emerging economies and absence of a global standard for international transactions are anticipated to adversely impact the market growth over the forecast period. In addition, cyber-attacks are further affecting market growth. Rapid change in the payments space, including the development of real-time and blockchain payments, has disrupted the model of traditional payment providers. This has eventually opened various avenues for cyber attackers. However, progressive changes in regulatory frameworks are expected to curb down these attacks over the forecast period.

Payment Method Insights

Based on the payment method, the payment processing solutions market has been segmented into credit card, debit card, and e-wallet. The credit card segment held the largest market share in 2019. Credit card processing tools are widely used by businesses as these tools allow businesses to align the essential data of their businesses, i.e. business orders, shipping and invoicing, and inventory level, within the business ERP system so that the businesses would function efficiently. Manually entering data at the time of the transaction process is time-consuming and prone to human error. With an integrated credit card processing solution, there’s a continuous flow of data to ERP systems that eliminates entry errors and avoids data redundancy.

The e-wallet segment is anticipated to witness the fastest growth over the forecast period. Increasing penetration of smartphones and laptops across the globe is instrumental in fueling the adoption of e-wallets. Increased payment processing speed and convenience of these e-wallets are expected to create growth opportunities for the segment over the forecast period. The rise of numerous e-commerce platforms across the globe is also propelling the e-wallet segment growth.

End-use Insights

Based on end-use, the market for payment processing solutions has been segmented into hospitality, retail, utilities and telecommunication, and others. The hospitality segment dominated the market in 2019. The hospitality industry is a wide category of fields within the service industry, which includes food and beverages, event planning, transportation, lodging, and traveling. A hospitality unit such as a hotel and restaurant consists of multiple groups, including direct operations and facility maintenance, which are focusing on adopting payment processing solutions. Moreover, travelers across the globe are becoming increasingly reliant on their smartphones and are preferring to pay for their goods and services online.

Europe payment processing solutions market share

The retail end-use segment is anticipated to witness the fastest growth over the forecast period. Vendors are focusing on providing customized retail payment processing solutions that allow merchants to provide flexible transaction methods at the point of sale. This helps retailers to enhance customer service with safe, quick, and efficient checkouts. Furthermore, retailers are widely adopting these solutions to gain complete visibility in payment transactions.

Regional Insights

North America dominated the market for payment processing solutions in 2019. High adoption of digital payment solutions across the North American countries is expected to contribute to the regional market growth. Moreover, growing adoption of mobile wallets in the region is expected to fuel regional market growth. Furthermore, in the North American countries, a credit card is the most preferred mode of money transfer among customers in both point-of-sale (POS) and online methods.

Asia Pacific is expected to emerge as the fastest-growing regional market for payment processing solutions over the forecast period. Growing adoption of smartphones, coupled with internet services, is expected to accelerate the regional market growth. Over the past few years, the region has been witnessing an increased adoption of alternative transaction methods, such as bank transfers and e-wallets. Moreover, growing retail market in the region is expected to create growth opportunities for the regional market.

Key Companies & Market Share Insights

The market for payment processing solutions is dominated by players such as Amazon Payments Inc.; PayPal Holdings, Inc.; and Authorize.Net. The market vendors are focusing on partnerships to expand their product portfolio and gain a competitive edge over other vendors. For instance, in September 2018, PayU Group entered into a partnership with PhonePe to increase its online merchant database in India. This partnership intends to offer a better payment experience for the increasing digital-savvy merchants as well as consumers.

Vendors are focusing on innovations to differentiate and personalize their solution offerings for potential customers. Moreover, vendors are significantly investing in R&D activities for innovating and updating their products and solutions. Mergers & acquisitions and new product launches are some of the key strategies adopted by these vendors to strengthen their foothold in the payment processing solutions industry. For instance, in September 2018, Global Payments Inc. partnered with Ingenico Group to offer advanced payment terminal services to enhance the consumer experience. This partnership was aimed at expanding its small and medium enterprises’ customer base. Some of the prominent players in the payment processing solutions market include:

  • Adyen N.V.

  • Amazon Payments Inc.

  • Authorize.Net

  • PayPal Holdings Inc.

Payment Processing Solutions Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 38 billion

Revenue forecast in 2027

USD 98 billion

Growth Rate

CAGR of 14.5% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Payment method, end-use, and region

Regional scope

North America; Europe; Asia Pacific; Latin America; and MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; Brazil

Key companies profiled

Adyen N.V.; Amazon Payments Inc.; Authorize.Net; and PayPal Holdings Inc.

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Segments Covered in the Report

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global payment processing solutions market report based on the payment method, end-use, and region:

  • Payment Method Outlook (Revenue, USD Billion, 2016 - 2027)

    • Credit Card

    • Debit Card

    • E-wallet

  • End-use Outlook (Revenue, USD Billion, 2016 - 2027)

    • Hospitality

    • Retail

    • Utilities & Telecommunication

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

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