The global payment gateways market is expected to grow at a CAGR of close to 17% between 2017 and 2021.
Technavio says the market is further categorized into the following segments based on end-users, which include large enterprises, micro and small enterprises, and mid-sized enterprises. The large enterprises segment dominated the market with more than 62% share in 2016.
The growth of the market is attributed to the increased use of advanced technologies, such as mobile payments and digital wallets, and the high adoption of cloud platform by organizations. The integration of mobile platform with the payment gateway software has increased the agility of these solutions.
In the Americas, the adoption of Europay, MasterCard, and Visa (EMV) technology has increased, and customers are becoming more accepting of digital wallet technology.
Technological advances, such as the introduction of contactless payment POS terminals, attract more customers and contribute to the growth of the market. The growing popularity of mobile wallets has encouraged many payment networks to unbundle their offerings, thus boosting the market growth.
The high adoption of smartphones and other mobile devices has encouraged payment gateway developers to increase their investments in the merchant service.
The market in EMEA is experiencing steady growth due to the increased momentum of NFC-enabled wallet services and the launch of many non-NFC wallet services. In Europe, many large financial institutions and telecom operators have launched independent mobile wallet platforms that are available in nearly half of the EU countries.
Some of the other factors that drive the market growth include the continuous R&D in smartphone technology, increasing number of NFC-enabled smartphones, the high focus of industry stakeholders on digital security, widespread adoption of mobile gadgets, and integration of e-commerce with brick-and-mortar stores.
The payment gateways market in APAC is expected to grow at a CAGR of more than 20%. APAC is adopting the payment gateway technology at a much faster rate compared to other regions. The volume of online payments is increasing in developing markets in the region. Also, the limited availability of debit and credit cards in many nations is encouraging customers to use bank accounts that are linked to mobile wallets. The penetration of smartphones is nearly 62%, which is higher than other banking options.
The top vendors in the global payment gateways market as highlighted in this market research analysis are:
• Amazon Payments
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