Over the years, the non-hosted segment is anticipated to experience substantial expansion. Many online retailers choose non-hosted payment gateways for their websites because they can maintain full control over the checkout process.
Table of content:
- Introduction
- The key factors influencing the online payment gateway market’s growth are:
- The Impact of COVID-19
- Instant Mobile Payments
- Business-to-Business payment solution
- Industries are spreading their wings
- Payment Gateways a Merchant can choose: Hosted and Non-Hosted
In light of the abrupt switch to internet payment methods, several market research reports indicate that the global market for online payment gateways is booming with one of the fastest growth rates compared to its competitors. According to an article by GlobeNewswire, an Intrado subsidiary, the global payment gateway market would reach $193.27 billion in 2030 with a compound annual growth rate of 10.18%. In its post, GlobalNewswire mentioned Market Research Future’s extensive research report.
Although other reports from various research organizations may differ slightly from this, it is undeniably true that the market for online payment gateways is booming with a double-digit CAGR.
The key factors influencing the online international payment gateway market’s growth are:
In reality, every market that enables and encourages online payment is responsible for the growth of the payment gateway market.
The Impact of COVID-19
The COVID-19 pandemic has become one of the biggest hazards to the world economy and financial markets. However, digital payment is one of the few areas that has seen remarkable growth. According to the United Nations, global eCommerce jumped to $ 26.7 trillion, fueled by COVID-19. (https://news.un.org/en/story/2021/05/1091182)
The Republic of Korea witnessed the most growth in the digital retail economy, with internet sales increasing from roughly one in every five transactions in 2019 to more than one in every four last year.
These figures demonstrate the increasing significance of the online activity. Such information is crucial for developing countries so that they can rebuild their economies after the COVID-19 pandemic.
Online transactions increased significantly in the UK from 15.8 to 23.3 percent during the same time period, as well as in China (20.7 to 24.9%), the US (11 to 14%), Australia (6.3 to 9.4 percent), Singapore (5.9 to 11.7 percent), Canada, and Australia (3.6 to 6.2 percent).
Due to continued trends toward global e-commerce, digital payments, speedy payments, and cash substitution, the payment gateway market has grown significantly in recent years. For example, during COVID-19, Amazon made more than a 200% profit, and daily-use products played a significant role in this growth. Additionally, there were fewer regional distinctions in consumer behavior, and many people, especially the elderly, started making their first online purchases. As a result, electronic P2P and C2B payments have grown in popularity.
Additionally, as the need for international payments increases, businesses must be able to process them quickly and efficiently for their clients, A Payment gateway provider must ensure every type of transactional security for it merchant even his merchant is a high-risk, He can facilitate his merchant by High Risk Merchant Account. which contributes to the development of the global payment gateway industry.
Instant Mobile Payments
The use of payment gateways has increased significantly in the banking, financial services, and insurance industries as a result of advancements in payment gateway technology, which have also led to a large and expanding payment gateway market. The industry is anticipated to grow as a result of increased demand for instant mobile payments and the usage of mobile banking channels. Customers expect a flawless user experience from mobile wallets as their preferences shift to digital payment technology. In order to manage the surge in digital payment volumes, there is a growing need for safe and dependable payment gateways. Furthermore, having a strong payment infrastructure is essential for digital commerce businesses, given the rapid pace of innovation in the digital economy.
Business-to-Business payment solution
Businesses adopt B2B payment solutions in order to automate payment processes and enhance productivity. The shift toward digitalization, which enables companies to transmit and receive payments swiftly and does away with laborious invoicing processes, is one of the most significant payments gateway advancements. Utilizing technology to expedite payment sending and receiving can help businesses reduce costs and increase cash flow. As a result, the online payment gateway market is predicted to expand.
Industries are spreading their wings
eCommerce, OTT platforms, Online pharmacies, Groceries, and Food are the industries that have proved their capacity during the last few years. They have extremely diversified their portfolio. They are offering every useful good and service at the consumer’s doorstep and are creating a large customer base. Customers prefer to pay online for these services.
Even though these industries are high-risk due to their chargeback and refund ratios, payment gateways have solutions for that, and they can provide a High-Risk Merchant Account for their merchants.
To meet new difficulties and ease the transition to digitization, businesses are implementing efficient payment systems. With technology advancements and more digitalization in organizations, there is a rising need for online payment solutions to be integrated into every firm. As a result, the global market for online payment gateways is growing rapidly.
Payment Gateways a Merchant can choose: Hosted and Non-Hosted
In 2021, the hosted segment led the market and generated over 57.0% of total revenue. Due to simple payment setup processes and decreased merchant liability, hosted payment gateway demand is rising among retailers. These elements guarantee that third-party payment service providers will manage the entire transaction process and offer improved security and data protection. Hosted payment gateways also enable businesses to cut down on fraud and concentrate on their core services. Hosted gateways are also a safer choice for payment processing because they adhere to the Payment Card Industry Data Security Standard (PCI DSS).
Over the years, the non-hosted segment is anticipated to experience substantial expansion. Many online retailers choose non-hosted payment gateways for their websites because they can maintain full control over the checkout process, including layout and design, and give customers a smooth buying experience. Using APIs, retailers can permit customers to finish transactions by directly inputting their debit or credit card information on the checkout page. Furthermore, any device can use APIs to connect non-hosted gateways with electronic payment systems, creating new opportunities for industry expansion over the years.
Press Release Distributed by The Express Wire
To view the original version on The Express Wire visit PayCly – The Online Payment Gateway Market is Reaching New Heights with a Double-Digit Compound Annual Growth Rate after COVID-19
