Payment Gateway Market Size & Business Prospect, 2021-2027

Global Payment Gateway Market Size, Share & Industry Trends Analysis Report By Type (Hosted and Non-hosted), By End Use, By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Regional Outlook and Forecast, 2021 - 2027

Published Date: April-2022 | Number of Pages: 221 | Format: PDF | Report ID: KBV-17445

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Get in-depth analysis of the COVID-19 impact on the Payment Gateway Market

Market Report Description

The Global Payment Gateway Market size is expected to reach $73.9 billion by 2027, rising at a market growth of 22.0% CAGR during the forecast period.

A payment gateway is a software and a server that shares all information relevant to an online transaction involving a certain bank account and responds to customers about the success or failure of their transaction. Furthermore, it essentially functions as a middleman between banks and other mobile applications and e-commerce websites where an online transaction is conducted. By encrypting sensitive data, the payment gateway authenticates online transactions. Furthermore, payment gateways ensure security by safeguarding against online fraud through the use of card verification values (CVV) and address verification systems (AVS). The market is likely to develop dramatically in the coming years, due to the growing popularity of online transactions.

The growing demands for mobile-based payments around the world is contributing to the market expansion. Other key aspects expected to support the growth of the payment gateway market include rising e-commerce sales and global internet penetration. Furthermore, the movement in merchant and consumer preferences toward digital channels for permitting online money transfers is significantly increasing in the world.

Payment gateways that allow secure internet transactions and assist avoid credit or debit card scams and other illegal activity are becoming highly popular among businesses. Trustworthy payment gateways encrypt sensitive data like bank account numbers and credit or debit card numbers to make sure that it is securely sent from the customer to the issuing bank. Furthermore, they reduce the difficulties of shopping in physical locations and standing in lengthy lines for long periods. Consumers can finish the full transaction quickly and easily online, resulting in a smooth purchasing experience.

Financial service companies have been able to offer unique digital services to customers as a result of technological improvements and the high rate of internet adoption around the world. The rising popularity of mobile-based apps for money transfers is also driving up demand for online banking. Governments throughout the world are working to boost internet access in rural areas.

Payment Gateway Market Size - Global Opportunities and Trends Analysis Report 2017-2027

COVID-19 Impact Analysis

The pandemic of COVID-19 has had a beneficial influence on market growth. This is due to the increased popularity of digital payments, e-commerce, rapid payments, and the tendency of cash displacement. During the pandemic, the e-commerce industry grew dramatically, with a rise in the number of people opting to shop online. Furthermore, because the internet and mobile services connect people to payment gateways and other online platforms, people's reliance on them has grown during the pandemic. The disease's global effects are already being noticed, and it is predicted to have a considerable influence on the payment gateway business by 2020.

Market driving Factors:

Efforts to promote digital payments around the world

ICT technologies are being used by countries all over the world to promote digital economies. Numerous steps are being taken by governments to digitize the payment process. Digital payment is one of the most important growth imperatives for a country's economy. It has the potential to raise economic growth and productivity, enhance transparency, raise revenues, broaden financial inclusion, and provide end-users with new economic options. For example, the Indian government has initiated many initiatives to promote digital payments. Digital India, the debut of the Unified Payments Interface (UPI), are all driving forces behind the migration to digital payments.

Reduction in the number of unbanked people

A huge portion of the world's population lives in rural & isolated areas. This group lacks access to the internet and is digitally illiterate. The necessity of financial services for a huge population living in rural and remote areas is now recognized by development organizations, governments, and private sector participants. As a result, more people have access to financial services. Governments conduct numerous projects to give connectivity to these people to encourage financial inclusion. With efforts and initiatives of various governments, the percentage of adults with bank accounts climbed significantly from the past few years.

Marketing Restraining Factor:

There are no international standards for cross-border payments

Year over year (YoY), cross-border trade has increased as more businesses purchase goods and services from around the world. However, digital payment vendors are unable to take advantage of this opportunity due to a lack of global payment systems that are simple to use, a shortage of global standards, and varying government restrictions in different countries. Distinct countries have different payment and data storage requirements. Cross-border payments are inefficient as a result of these restrictions and compliance. Furthermore, the local payment infrastructure is not set up to handle cross-border transactions. Several countries have developed high- and low-value payment systems built on proprietary communication and security standards in these last few decades.

Payment Gateway Market Share and Industry Analysis Report 2020

Type Outlook

Based on Type, the market is segmented into Hosted and Non-hosted. The non-hosted segment procured a substantial revenue share in the payment gateway in 2020. Several businesses across the world prefer to choose a non-hosted payment gateway for their website since it allows them to maintain control over the entire checkout process, including the layout and design process while offering customers a seamless purchasing experience. Customers can submit their credit or debit card information straight on the checkout page and make payments using APIs. Furthermore, non-hosted gateways can be linked with online payment solutions via APIs on any device, allowing the category to develop over the projection period.

End Use Outlook

Based on End Use, the market is segmented into Retail & E-commerce, BFSI, Travel & Hospitality, Media & Entertainment and Others. The Retail & E-commerce segment acquired the highest revenue share in the payment gateway market in 2020. The growing amount of online transactions in e-commerce and retail enterprises around the world can be ascribed to the segment's growth. In addition, the growing demand for online retailing across the world is expected to drive the growth of the payment gateway market.

Enterprise Size Outlook

Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprises (SMEs). The small and medium enterprises registered a significant revenue share in the payment gateway market in 2020. Payment gateways are being used by small & medium enterprises to speed up payment processing and provide greater convenience to customers. A more digital strategy is being used by several SMEs to restructure their revenue plans and businesses. This is projected to boost the segment's potential growth in the coming years.

Payment Gateway Market Report Coverage
Report Attribute Details
Market size value in 2020 USD 17.6 Billion
Market size forecast in 2027 USD 73.9 Billion
Base Year 2020
Historical Period 2017 to 2019
Forecast Period 2021 to 2027
Revenue Growth Rate CAGR of 22% from 2021 to 2027
Number of Pages 220
Number of Tables 354
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling
Segments covered Type, End-use, Enterprise Size, Region
Country scope US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers
  • Efforts to promote digital payments around the world
  • Reduction in the number of unbanked people
  • There are no international standards for cross-border payments

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Asia Pacific is estimated to procure a significant revenue share in the payment gateway market during the forecast period. This growth is ascribed to many government initiatives in Asia Pacific countries to upgrade the online payment infrastructure. To allow effective digital payments, the Reserve Bank of India (RBI) has regulated gateways such as PayTM, Bharat Bill Pay, and Mobikwik in India. The Chinese government is concentrating on increasing internet connection in rural areas, which will open up new market growth prospects.

Free Valuable Insights: Global Payment Gateway Market size to reach USD 73.9 Billion by 2027

KBV Cardinal Matrix - Payment Gateway Market Competition Analysis

Payment Gateway Market - Competitive Landscape and Trends by Forecast 2027

The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; JPMorgan Chase & Co. and, Inc. are the forerunners in the Payment Gateway Market. Companies such as Visa, Inc., Naspers Limited, Adyen N.V. are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Visa, Inc., PayPal Holdings, Inc., BitPay, Inc., Stripe, Inc., JPMorgan Chase & Co.,, Inc., Naspers Limited, VeriFone Holdings, Inc., Adyen N.V., and Worldline.

Recent Strategies Deployed in Payment Gateway Market

» Partnerships, Collaborations and Agreements:

  • Feb-2022: Amazon Pay came into a partnership with SugarBox Networks along with Simpl, to authorized payments in line with the progressive Digital India vision. Under this partnership, the companies focused on promoting payments around geographies, by creating an innovative solution for customers across the unserved and underserved geographies. Additionally, this partnership would focus on delivering e-wallet consumers a consistent one-click payment experience on Amazon Pay, further strengthening the digital payments environment.
  • Dec-2021: Adyen formed a partnership with Revel Systems, a market-leading cloud-native point of sale and business management platform. Through this partnership, Revel Systems would introduce a combined payment solution called Revel Advantage International developed using the Adyen Platform. The product offers dealers the capacity to work with one seller for support, services, and technology, to assure payments and POS solution is running smoothly.
  • Nov-2021: Amazon Pay formed a partnership with MakeMyTrip India, a subsidiary of MakeMyTrip, India's leading travel group. Under this partnership, Amazon Pay would generate a suitable experience and provide greater value for its consumers with access to MakeMyTrip's top-class travel portfolio. Additionally, MakeMyTrip would be able to expand its distribution through Amazon Pay's huge consumer base, mainly in smaller towns and cities to boost online booking of travel services around the country.
  • Nov-2021: Amazon Pay along with AWS came into a partnership with Yes Bank, an Indian private sector bank. Under this partnership, the companies aimed to combine UPI with Amazon Pay would authorize the US e-commerce colossal, which is a late aspirant into the payment space, to issue UPI IDs with the @yapl handle. Moreover, this tie-up would further expand Yes Bank’s defined existence in UPI with its payment procedure platform introduced on AWS.
  • Oct-2021: Stripe came into a partnership with VTEX, Enterprise Digital Commerce Platform. This partnership aimed to provide VTEX consumers with to access online payments through Stripe directly via the plug-in available on the VTEX merchant platform. Additionally, the partnership would operate in all regions such as the United States, Mexico, Brazil, Romania, pain, Italy, the United Kingdom, and Singapore, which supports payment procedures in dozens of currencies.
  • Oct-2021: Stripe formed a partnership with Klarna, a leading global retail bank, payments, and shopping service. This partnership aimed to target distributors using Stripe can now operate Klarna as the secured payment method in checkout within minutes, providing an admirable shopping experience to customers.
  • Sep-2021: Adyen came into a partnership with Zip, an Australian public limited financial technology company. Through this partnership, Zip would provide dealers in Adyen’s network the capabilities to combine BNPL at checkout whereas Adyen would operate all payments for Zip through a single system and platform, helping to propel point of sale revenue growth as well as to expand eCommerce reach. Additionally, Adyen would turn into a payment processing partner for Zip and its global partner.
  • Aug-2021: Adyen formed a partnership with Shiji payments, a platform of payment solutions for transaction switching, configuration, storage, and reporting, including centralized logging and monitoring. Through this partnership, the companies aimed to simplify the payment procedure for hospitality businesses by removing the necessity list of suppliers and platforms which generally includes the isolated procedure for food and beverage point of sale, property management systems, and guest experience platforms providing different payments dealers for very individual.
  • Jul-2021: PayU formed a partnership with WooCommerce, an open-source, customizable e-commerce platform. This partnership would offer dealers absolute pricing on transactions without hidden charges, and contactless payment solutions to escalating profitability and growth. Additionally, WooCommerce allows dealers with end-to-end digitalization of business processes as well as digital payments infrastructure.
  • Jun-2021: Stripe came into a partnership with Aria Systems, a software company. This partnership aimed to expand its lineup of payment partners while the two companies can provide organization clients another decent and secure option for processing payments across the world.
  • Apr-2021: Adyen formed a partnership with NDM Hospitality, an innovator in the travel and dining industries. Through this partnership, Adyen would support eCommerce and point-of-sale volume for the restaurants and hotel properties, delivering NDM Hospitality with cooperative commerce solutions.
  • Jan-2021: PayU formed a partnership with Twisto, a leading Czech FinTech offering deferred payments on the Polish market. Under this partnership, the companies would provide online distributors and brands using the PayU payment system, enabling them to offer Twisto’s negotiated payment solution to their consumers. Additionally, Twisto’s innovative solution would combine with PayU API as part of the PayU Pay Later platform to have the choice to delay payments at no extra cost for up to 45 days.
  • Dec-2020: Verifone came into a partnership with Klarna, the leading global payments, and shopping service. Together, the companies aimed to allow retailers to generate a personalized and smoother experience for consumers ultimately unlocking growth, propelling conversion rates, and boosting customer satisfaction and loyalty. Additionally, Klarna would be available as the first payment solution to millions of Verifone devices in the US and Europe.
  • Dec-2020: PayPal formed a partnership with Razorpay, India's first full-stack financial solutions company. This partnership would allow Razorpay’s partner businesses to combine with PayPal for accepting payments from international consumers from around 200 markets in a secure and convenient manner, minimizing the wait time from days to minutes. Additionally, by combining PayPal into Razorpay payment platforms, MSMEs and Razorpay would allow accepting international payments without writing a single line of code.
  • Oct-2020: Amazon Pay formed a partnership with Uber, a technology company that offers vehicles for rent. Under this partnership, the companies aimed to combine Amazon Pay as a payment option on the Uber app allowing millions of consumers to make safe, secure, and contactless payments for Uber rides. Moreover, this partnership would also concentrate on providing consumers one-click payment experience along with cashback offers to propel adoption as well as strengthen the digital payments environment.
  • Oct-2020: Verifone came into a partnership with Centrapay, a Software company in Auckland, New Zealand. This partnership aimed to combine various technologies to enable traditional and new financial applications to work together on personalizing the dealers and consumer payment experience. Additionally, the partnership would allow product retailers to provide value-added services including the capabilities to pay with GrabOne vouchers.
  • Apr-2020: Amazon Pay partnered with ShemarooMe, the OTT platform from Shemaroo Entertainment. Under this partnership, the companies focused on providing an easy user experience for both iOS and Android devices used to access ShemarooMe’s extensive content over 15,000+ hours of multi-genre, multi-regional content including Bollywood Classic, Bollywood Premiere, Kids, Comedy, Regional and Devotional content. Additionally, the consumer can redeem cashback of up to 40% on Amazon Pay.

» Product Launches and Product Expansions:

  • Jan-2022: Adyen launched a mobile point-of-sale portfolio in the EU, the US, and the UK. The portfolio offers small dealers an economical digital payments tool that would support actual POS tech for big enterprises.
  • Oct-2021: BitPay along with Wix introduced the addition of BitPay’s Bitcoin and cryptocurrency payment procedure as a new payment option on the Wix eCommerce platform. Through this launch, BitPay’s blockchain payment rails combine clearly with Wix’s eCommerce platform granting Wix merchants to provide Bitcoin and other cryptocurrency payment options to their consumers.
  • Oct-2021: J.P. Morgan introduced Digital Bill Payment, powered by Paymentus, a leading provider of cloud-based bill payment technology and solutions. This solution would equip enterprises with a modern, single platform for consumer engagement, bill presentation, and payments. Additionally, this solution would help enterprise efforts to digitalize the entire outstanding journey via new innovations such as a request to pay and upcoming solutions focused on automating the acceptance of virtual card payments.
  • Dec-2020: Amazon introduced Amazon Payment Services in the Middle East and North Africa region. Through this launch, these Amazon services would provide enterprises access to the collection of payment services that allows accepting online payments using both local and global payment methods, providing installments to the consumers to make investment economical for their customers, and monitoring payment performance round the clock.

» Geographical Expansions:

  • Apr-2021: Stripe expanded its geographical footprints in the United Arab Emirates. Through this expansion, stripe would open a new UAE office, in Dubai Internet City, which would be the company’s first office in the region. Additionally, enterprises working online in the UAE can use Stripe to make payouts, accept online payments, mitigate fraud, and expand globally to reach consumers across the world.

Scope of the Study

Market Segments Covered in the Report:

By Type

  • Hosted and
  • Non-hosted

By End Use

  • Retail & E-commerce
  • BFSI
  • Travel & Hospitality
  • Media & Entertainment and
  • Others

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises (SMEs)

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

  • Visa, Inc.
  • PayPal Holdings, Inc.
  • BitPay, Inc.
  • Stripe, Inc.
  • JPMorgan Chase & Co.
  •, Inc.
  • Naspers Limited
  • VeriFone Holdings, Inc.
  • Adyen N.V.
  • Worldline

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Related Reports:

North America Payment Gateway Market Report 2021-2027

Europe Payment Gateway Market Report 2021-2027

Asia Pacific Payment Gateway Market Report 2021-2027

LAMEA Payment Gateway Market Report 2021-2027


The global payment gateway market size is expected to reach $73.9 billion by 2027.

Reduction in the number of unbanked people are driving the market in coming years, however, there are no international standards for cross-border payments limited the growth of the market.

Visa, Inc., PayPal Holdings, Inc., BitPay, Inc., Stripe, Inc., JPMorgan Chase & Co.,, Inc., Naspers Limited, VeriFone Holdings, Inc., Adyen N.V., and Worldline.

The Hosted segment is leading the Global Payment Gateway Market by Type in 2020, and would achieve a market value of $73.9 billion by 2027.

The Large Enterprises segment acquired maximum revenue share in the Global Payment Gateway Market by Enterprise Size in 2020; thereby, achieving a market value of $44.9 billion by 2027.

The North America is the fastest growing region in the Global Payment Gateway Market by Region in 2020.

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