The rising levels of disposable income, changes in shopping habits due to hectic and busy lifestyles, andadvancing e-commerce sector are proliferating the global payment gateway market growth. Moreover, the benefits of payment gateways such as fraud prevention by providing one-time passwords (OTP) and card verification value (CVV) are strengthening customer trust toward money security. Apart from this, shifts in the payment mode from cash-based to debit or credit cards and mobile wallets are contributing to the growth of the payment gateway market in the forecast perios..
However, the presence of the retailers on the major online platforms and the availbility of deals and discounts by the e-commerce companies coupled with the quick free home delivery and easy EMI options are leading to significant consumer growth traction with regard to using the digital payment mode.
According to the MarkNtel Advisors’ research report titled “Global Payment Gateway Market Analysis, 2020”, the Global Payment Gateway Market is set to grow at a CAGR of around 20.00% from 2021-25. In 2019, the Asia-Pacific region acquired the major market on account of the rising urbanization and escalating advancement of organized retail sector. The booming e-commerce sector and growing internet penetration in the region are the major contributors to the demand for the payment gateways in the market. Also, major tie-ups of companies, enterprises, and retailers with the key payment gateways and the added cashback offers to retain old customers and attract new customers are contributing to the growth of the payment gateway market. The rising degree of support from the government in countries such as India, China, and Japan to actively use digital payment mode to reduce corruption and black money, along with burgeoning number of small and large enterprises are leading to the growth of the payment gateway market in the forthcoming years.
The retail sector dominated the market in 2019 on account of the rapidly increasing e-commerce sector. Moreover, the hectic lifestyle of the consumers, boost in shopping from the e-commerce platforms, and availability of daily grocery, apparels, consumer goods, etc. with a free home delivery service are key factors contributing to the demand for the global payment gateway market in the retail sector as stated in the MarkNtel Advisors in its research report “Global Payment Gateway Market Analysis, 2020”.
Merger and Acquisition Leading to Stiff Competition for the Portfolio Expansion
According to MarkNtel Advisors, the mergers and acquisitions by the companies toward the expansion of the portfolios in the industry are creating stiff competition among the players operating in the industry. The leading players in the industry with a considerable share are PayPal holdings, Stripe Adyen N.V. Inc, Amazon pay, Square inc, etc.
“Global Payment Gateway Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decision, hotspots and growth opportunities available for payment gateway providers across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
Key questions answered in the study: