The online payment gateway market size is projected to be valued at US$ 117.5 Bn in 2023 and is expected to rise to US$ 293.9 Bn by 2033. The sales of online payment gateway are expected to grow at a significant CAGR of 9.6% during the forecast period.
One of the main drivers of the market’s expansion is the growing digital transformation of organisations all over the world. Additionally, growing technical breakthroughs have made it possible for financial service providers to supply customers with novel digital offerings.
Governments around the world are working to spread awareness of internet services in rural areas.
- In order to deliver fast internet services, the British government invested USD 5.9 billion in the nation’s rural areas in 2020. A shared rural mobile phone network project that the government invested USD 606.3 million in in 2020 was intended to provide 4G connectivity to 95% of the nation’s rural areas in the upcoming years.
To provide merchants and customers with a digital payment’s infrastructure, e-commerce enterprises are collaborating with payment service providers. Due to the volume of transactions managed by merchants, gateway systems have been increasingly incorporated into their sales channels.
In order to provide real-time payment options to customers and businesses, numerous banks worldwide are working to form alliances with payment gateway service providers.
- Yes Bank announced in November 2021 that it will be working with Amazon Pay and Amazon Web Services (AWS) to offer a real-time payment system via the Unified Payment Interface (UPI) transaction capability.
Key Takeaways from the Online Payment Gateway Market
- In the United States, it is predicted that in 2022, more than 80% of transactions are unlikely to involve cash due to growing acceptance from SMEs. Additionally, it is predicted that online payment transaction values would increase by more than 15% between 2020 and 2025.
- In 2020, Europe accounted for roughly 25% of the global market for payment gateways. The region’s market is underpinned by a strong regulatory environment for payments and a highly saturated card use rate.