The global payment gateway market size reached $26.6 billion in 2021 and is estimated to clock a 16.8% CAGR between 2022 and 2030, depicting an enormous opportunity for fintech startups and companies to grow in the years to come.
According to the latest Acumen Research & Consulting report, the global payment gateway market revenue in 2022 is estimated to cross $32 billion and will continue to click an impressive YoY growth to reach $106.4 billion by 2030.
In spite of China and India being the largest market by the number of online shoppers, North America dominates the market. The region accounted for a 35.8% share of the global payment gateway revenue in 2021. The growth was led by the SME sector which held more than 40% of the payment gateway market share.
Rising demand for speedy mobile payments, along with the increasing use of mobile-based financial services is bound to fuel the growth of global payment gateways. Customers expect seamless user interaction with digital payments as they shift their focus to the use of electronic payment systems. This is why the demand for secure and reliable payment gateways to handle the increase in online transactions is rising dramatically.
In addition, digital banking is employed for various activities, including ordering food from restaurants, buying tickets online, and even upgrading smartphones games. This will boost the growth of market research over the forecast period. Furthermore, the use of credit cards or debit cards to facilitate transactions is increasing in both developing and industrialized economies. This is expected to accelerate the growth of the market more.
However, the growing cybersecurity concerns are the biggest obstacle for the market for payment gateways. With more and more unsuspecting customers using electronic and online payment options, they are required to submit their sensitive credentials to the payment gateway service providers. Cyber thieves and malicious hackers around the world can hack into providers’ websites to steal customers’ sensitive account details. This will hinder market growth in the coming years.
According to the study, the Asia-Pacific region is expected to be the most rapidly growing market over the next few years. With the increasing digital use and a high level of participation in online services as well, the Asia-Pacific population is required to utilize mobile applications to control their lives at work and home. In addition, there is a strong connection between the United Nations and India’s rapidly growing IT Industry. Since 2014 the US has invested more than $30 billion in India’s entrepreneurial and technological sectors, which hints at the promising future prospects of the Indian market in future.
In addition, advances in wireless communications technology including 5G, are the key elements of the future digital economy. The introduction of 5G could open up a lucrative potential for new technologies such as robots and quantum entanglement, intelligent systems and also the Internet of things (IoT). Furthermore, it is believed that the Chinese government is working on enhancing connectivity within rural areas which provides promising prospects for the Asia-Pacific payment gateway market to thrive.
Europe is believed to hold the second-largest share of the global payment gateway market. The use of credit and debit card in the region is at an all-time high as European companies have started offering customers the option of making transactions with 80 different alternative payment methods. Needless to say, it will further boost the expansion of payment gateways.