Payment Processing Solutions Market - CAGR of 10.3% by 2030
[Research Report] The payment processing solutions market is expected to grow from US$ 118.84 billion in 2022 to US$ 259.62 billion by 2030; it is estimated to record a CAGR of 10.3% from 2022 to 2030.
Analyst Perspective:
The growing implementation of robust security measures and fraud prevention techniques by the solution providers is driving the payment processing solutions market growth. Expansion of the e-commerce industry is also expected to boost the global payment processing market during the anticipated period. Moreover, the rising adoption of advanced technologies such as AI, ML, 5G, big data analytics, and cloud are creating growth opportunities for the payment processing solutions market share.
Market Overview:
Payment processing refers to authorizing, verifying, and completing a financial transaction between merchant and consumer. The process involves transferring funds and exchanging payment information from the buyer's account to the seller's account. It typically involves numerous parties such as seller, buyer, issuing bank, acquiring bank, and payment gateway.
Payment processing solutions are electronic systems and software that enable financial transactions funds between merchant and consumer. Various payment processing solutions are available in the market, including card payments, digital wallets, and automatic house cleaning. Card payments consist of debit cards, credit cards, stored-value cards, and forex cards. The digital wallets process the financial transaction through Google Pay, PhonePe, Amazon Pay, Square Cash, and others. Also, several other payment processing solutions, such as cheques and cheque payments, are available for customers. These solutions help users by ensuring security, facilitating payment, and streamlining the transaction process efficiently, increasing consumer demand. Thus, all these factors drive the payment processing solutions market share.
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Payment Processing Solutions Market: Strategic Insights
Market Size Value in US$ 118.84 billion in 2022 Market Size Value by US$ 259.62 billion by 2030 Growth rate CAGR of 10.3% from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Payment Processing Solutions Market: Strategic Insights
| Market Size Value in | US$ 118.84 billion in 2022 |
| Market Size Value by | US$ 259.62 billion by 2030 |
| Growth rate | CAGR of 10.3% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Driver:
Increasing Customers' Focus on Fraud and Security Prevention is Driving the Payment Processing Solutions Market Growth
The rising number of financial frauds has increased customer focus on fraud and security prevention activities, driving the global payment processing solutions market. For instance, according to National Police Agency data, Japan observed a financial loss of US$ 65.13 million, reaching 35% in 2022, from 21.2% in 2021, increasing concern among consumers about using appropriate payment processing solutions. Consumers are highly concerned about protecting their financial transactions against fraud and cybercrimes. This encourages companies to implement robust fraud prevention techniques and security measures to help consumers protect sensitive payment information. Moreover, the growing need for building consumer trust increases the demand for encrypted techniques for secure transmission of payment data between customers, payment processors, and merchants. This encryption technique includes the credit card name and expiration date to safeguard the payment information from unauthorized access or interruption. The technique works by encrypting payment data into an unreadable code. However, increasing focus by service providers to offer security and fraud prevention solutions for building consumer trust drives the payment processing solutions market.
Report Segmentation and Scope:
The payment processing solutions market is segmented on the basis of components, payment methods, and industry verticals. Based on component, the payment processing solutions market is segmented into solution and services. In terms of payment method, the payment processing solutions market is categorized into card payment, digital wallet, and others. Based on industry vertical, the payment processing solutions are divided into BFSI, retail & e-commerce, government & utilities, travel & hospitality, IT & telecom, and others. By region, the payment processing solutions market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
Segmental Analysis:
Based on payment method, the payment processing solutions market is segmented into card payment, digital wallet, and others. The digital wallet segment is anticipated to expand at the highest CAGR during the forecast period due to high adoption from consumers across the globe. Digital wallets are now becoming essential for safe and easy mobile payment processing. Digital wallets offer sophisticated security features to users, including encryption and tokenization. They boost customer confidence and promote digital payment methods, which drives the market for the segment. The expansion of the payment processing solutions market is associated with the surging contactless payments, and the incorporation of QR codes and NFC technology is fueling the market. The availability of digital wallets for making cross-border transactions is driving the payment processing solutions market. Digital wallets offer users various schemes, such as rewards and e-wallet loyalty schemes, encouraging users to adopt these online payment methods. However, digital wallets allow users to transact through their smartphones or other mobile devices, which is projected to fuel the market during the forecast period.
Regional Analysis:
North America is projected to expand at a significant rate during the forecast period. The North America payment processing solutions market is segmented into the US, Canada, and Mexico. The region contributes a noteworthy share to the global payment processing solutions market owing to the high adoption and investments in payment processing solutions in the region. The presence of solution providers, including Cisco Systems, Fiserv, Mastercard, Alphabet, Visa, Stripe, FIS Global, Square, PayU, and ACI Worldwide, is boosting the market. These players are continuously developing AI-based payment processing solutions to support customers across the globe, which is expected to create opportunities in the market during the forecast period. For instance, in October 2022, Pelican/ACE Software Solutions Inc. extended its partnership agreement to provide Payments as a Service (PaaS) solution to Santander Consumer Bank Austria. The rising use of AI-based payment processing solutions in several industries is driving the market in the region. However, rising awareness regarding the benefits of payment processing solutions and increasing investment in R&D activities are driving the market in the region.
Key Player Analysis:
Cisco Systems, Fiserv, Mastercard International Incorporated, Alphabet, Visa, Stripe, FIS Global, Square, PayU, and ACI Worldwide are among the key payment processing solutions market players profiled in the report.
Payment Processing Solutions Market Report Scope
Recent Developments:
The payment processing solutions market players highly adopt inorganic and organic strategies. A few recent key market developments are listed below:
- In November 2023, Al Ansari Exchange received approval from the Central Bank of the UAE for a Store Value Facilities and Retail Payment Service Provider license. This innovative platform aims to redefine digital transactions by providing businesses and consumers with a secure and user-friendly atmosphere to facilitate fast, secure, and convenient digital transactions.
- In June 2023, Visa acquired Pismo to provide core banking and issuer processing capabilities across debit, credit, prepaid, and commercial cards for clients through cloud-native APIs. The company also provides connectivity and support for emerging payment rails, including Pix in Brazil.
- In June 2023, Adyen launched Payout services for faster payment processing. The service allows customers to payout funds faster as per their convenient method.
- In May 2022, Square's company Afterpay partnered with Rite Aid to support online shoppers in paying for everyday items in four installments at no additional cost.
- In February 2022, Apple Inc. introduced Tap to Pay on iPhone to empower retailers and merchants to accept the Apple Pay solution securely and seamlessly. Tap to Pay on iPhone allows businesses to use the convenience and security of the iPhone to accept contactless payments.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Payment Method, and Industry Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The estimated global market size for the payment processing solutions market in 2022 is expected to be around US$ 118.84 billion
1. Increasing Customers' Focus on Fraud and Security Prevention
2. Growing Digitalization and Expansion of the E-commerce Industry
Cisco Systems, Inc., Fiserv, Inc., Mastercard International Incorporated, Alphabet Inc, Visa Inc, Stripe, Inc., FIS Global, Square, PayU, and ACI Worldwide Inc are the key market players expected to hold a major market share of payment processing solutions market in 2022
Asia Pacific is expected to register highest CAGR in the payment processing solutions market during the forecast period (2022-2030)
Rising Adoption of Value-added Services by Fintech, Banks, and Other Financial Institutions
US, Germany, and China are expected to register high growth rate during the forecast period
Solution segment is expected to hold a major market share of payment processing solutions market in 2022
The US is expected to hold a major market share of payment processing solutions market in 2022
The global market size of payment processing solutions market by 2030 will be around US$ 259.62 billion
The payment processing solutions market is expected to register an incremental growth value of US$ 140.78 billion during the forecast period
1. Introduction
1.1 Scope of the Study
1.2 Market Definition, Assumptions and Limitations
1.3 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness Analysis
3. Research Methodology
4. Payment Processing Solutions Market Landscape
4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.3.1 List of Vendors in the Value Chain
5. Payment Processing Solutions Market - Key Market Dynamics
5.1 Key Market Drivers
5.2 Key Market Restraints
5.3 Key Market Opportunities
5.4 Future Trends
5.5 Impact Analysis of Drivers and Restraints
6. Payment Processing Solutions Market - Global Market Analysis
6.1 Payment Processing Solutions - Global Market Overview
6.2 Payment Processing Solutions - Global Market and Forecast to 2030
7. Payment Processing Solutions Market – Revenue Analysis (USD Million) – By Component, 2020-2030
7.1 Overview
7.2 Solution
7.3 Service
8. Payment Processing Solutions Market – Revenue Analysis (USD Million) – By Payment Method, 2020-2030
8.1 Overview
8.2 Card Payment
8.3 Digital Wallet
8.4 Others
9. Payment Processing Solutions Market – Revenue Analysis (USD Million) – By Industry Vertical, 2020-2030
9.1 Overview
9.2 BFSI
9.3 Retail and E-Commerce
9.4 Government and Utilities
9.5 Travel and Hospitality
9.6 IT and Telecommunications
9.7 Others
10. Payment Processing Solutions Market - Revenue Analysis (USD Million), 2020-2030 – Geographical Analysis
10.1 North America
10.1.1 North America Payment Processing Solutions Market Overview
10.1.2 North America Payment Processing Solutions Market Revenue and Forecasts to 2030
10.1.3 North America Payment Processing Solutions Market Revenue and Forecasts and Analysis - By Component
10.1.4 North America Payment Processing Solutions Market Revenue and Forecasts and Analysis - By Payment Method
10.1.5 North America Payment Processing Solutions Market Revenue and Forecasts and Analysis - By Industry Vertical
10.1.6 North America Payment Processing Solutions Market Revenue and Forecasts and Analysis - By Countries
10.1.6.1 United States Payment Processing Solutions Market
10.1.6.1.1 United States Payment Processing Solutions Market, by Component
10.1.6.1.2 United States Payment Processing Solutions Market, by Payment Method
10.1.6.1.3 United States Payment Processing Solutions Market, by Industry Vertical
10.1.6.2 Canada Payment Processing Solutions Market
10.1.6.2.1 Canada Payment Processing Solutions Market, by Component
10.1.6.2.2 Canada Payment Processing Solutions Market, by Payment Method
10.1.6.2.3 Canada Payment Processing Solutions Market, by Industry Vertical
10.1.6.3 Mexico Payment Processing Solutions Market
10.1.6.3.1 Mexico Payment Processing Solutions Market, by Component
10.1.6.3.2 Mexico Payment Processing Solutions Market, by Payment Method
10.1.6.3.3 Mexico Payment Processing Solutions Market, by Industry Vertical
Note - Similar analysis would be provided for below mentioned regions/countries
10.2 Europe
10.2.1 Germany
10.2.2 France
10.2.3 Italy
10.2.4 United Kingdom
10.2.5 Russia
10.2.6 Rest of Europe
10.3 Asia-Pacific
10.3.1 Australia
10.3.2 China
10.3.3 India
10.3.4 Japan
10.3.5 South Korea
10.3.6 Rest of Asia-Pacific
10.4 Middle East and Africa
10.4.1 South Africa
10.4.2 Saudi Arabia
10.4.3 U.A.E
10.4.4 Rest of Middle East and Africa
10.5 South and Central America
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Rest of South and Central America
11. Pre and Post Covid-19 Impact
12. Industry Landscape
12.1 Mergers and Acquisitions
12.2 Agreements, Collaborations, Joint Ventures
12.3 New Product Launches
12.4 Expansions and Other Strategic Developments
13. Competitive Landscape
13.1 Heat Map Analysis by Key Players
13.2 Company Positioning and Concentration
14. Payment Processing Solutions Market - Key Company Profiles
14.1 Cisco Systems, Inc.
14.1.1 Key Facts
14.1.2 Business Description
14.1.3 Products and Services
14.1.4 Financial Overview
14.1.5 SWOT Analysis
14.1.6 Key Developments
Note - Similar information would be provided for below list of companies
14.2 Fiserv, Inc.
14.3 Mastercard International Incorporated
14.4 Alphabet Inc
14.5 Visa Inc
14.6 Stripe, Inc.
14.7 FIS Global
14.8 Square
14.9 PayU
14.10 ACI Worldwide Inc
15. Appendix
15.1 Glossary
15.2 About The Insight Partners
15.3 Market Intelligence Cloud
The List of Companies - Payment Processing Solutions Market
- Cisco Systems
- Fiserv
- Mastercard International Incorporated
- Alphabet
- Visa
- Stripe
- FIS Global
- Square
- PayU
- ACI Worldwide
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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