Payment Gateway Market (By Type: Hosted, Non-hosted; By Enterprise Size: Large Enterprises, Small & Medium Enterprises; By End-use: BFSI, Media & Entertainment, Retail & E-commerce, Travel & Hospitality, Others) - Global Industry Analysis, Market Size, Opportunities and Forecast 2020 - 2027

Category : ICT | Published at : July-2021 | Delivery Format : PDF | Status: Published | Pages : 190

The global payment gateway market is expected to grow at a CAGR of around 12.6% from 2021 to 2028 and expected to reach the market value of around US$ 90.5 Bn by 2028.

Report coverage

Market Payment Gateway Market
Analysis Period 2017 - 2028
Base Year 2020
Forecast Data 2021 - 2028
Segments Covered By Type, By Enterprise Size, By End Use and By Geography
Regional Scope North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled Due, PayPal, Stripe, Flagship Merchant Services, Payline Data Services LLC, Square Capital, LLC, Adyen, BitPay, GoCardless Ltd., Cayan, and among others
Report Coverage
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis
Customization Scope 10 hrs of free customization and expert consultation


A payment gateway is an online platform service that works in tandem with an e-commerce platform to serve as a middle-man for sending and receiving payments. An online payment gateway's primary function is to approve the transaction between the merchant and the customer. Furthermore, any business that collects money online needs a payment gateway. It has grown in popularity in the global market due to its numerous advantages, such as quick payment settlement and hassle-free transaction flow.

COVID-19 impact on global payment gateway market

COVID-19 has a positive impact on the global payment gateway market. COVID-19 triggered the expansion of e-commerce/online transactions with a focus on new firms, customer-centric approaches, and product types. Consumers now have access to a wide range of products at their leisure and safety from the comfort of their own homes, thanks to the growth of online transactions. According to an OECD report, sales in grocery stores and non-store retailers (primarily e-commerce providers) in the United States have reached new highs of nearly 16% and 14.8%, respectively. Furthermore, in the EU, retail sales from mail order houses or the internet increased by 30% in April 2020 compared to April 2019. Furthermore, in the United Kingdom, the share of e-commerce in retail increased from 17.3% to 20.3% between the first quarter of 2018 and the first quarter of 2020, resulting in an exponential rise of 31.3% for the first and second quarters of 2020.

High internet utility and smart phone adoption stimulate the growth of global payment gateway market

The current increase in digital literacy has resulted in an influx of investment in e-commerce firms, leveraging the market for new players to establish their base globally by churning out innovative patterns that disrupt old functioning. E-commerce has become an essential component of the global retail framework in recent years, propelling the payment gateway market. Furthermore, with the widespread adoption of smart phones, the launch of 4G network services, rising consumer wealth, and the consumer shift toward online purchases has grown exponentially, resulting in a rapid expansion of the global payment gateway market. Furthermore, according to the Indian Brand Equity Foundation (IBEF) in India, smart phone shipments reached 150 million units and 5G smart phone shipments crossed 4 million in 2020, driven by high consumer demand following the lockdown. The retail sector, like many other industries, has undergone a drastic transformation as a result of the increasing prevalence of the internet and the ongoing digitalization of modern life, with consumers shifting to a virtual mode, resulting in profit marking by payment gateways in every country. As internet access and adoption grow at a rapid pace around the world, the number of digital buyers grows year after year. 

Startups are witnessing high brink in global payment gateway market

According to the ORF report, start-ups and a number of young entrepreneurs are driving digital innovation. As of 2020, the Indo-Pacific region is home to 55,200 start-ups. Digital start-ups are growing regionally as a result of intra-ASEAN investments and mergers and acquisitions. Furthermore, with a primary focus on innovation, digital e-commerce, and the operation of major players, intraregional investments and connectivity are significantly strengthening. Apart from that, major players with large consumer bases are expanding their service portfolio on their platform by entering new sectors. Grab, for example, has expanded its financial services. Similarly, Gojek, an Indonesia-based ride-hailing unicorn, operates in Singapore, Vietnam, and Thailand and provides more than 18 financial and lifestyle services.

Market Segmentation

The global payment gateway market is segmented as type, enterprise, and end-use. By type, the market is classified into hosted and non-hosted. By enterprise, the market is bifurcated into large enterprises and small & medium enterprises. By end-use, the market is segregated as BFSI, media & entertainment, retail & e-commerce, travel & hospitality, and others.

The hosted segment will account for a sizable portion of the global payment gateway market. As a hosted payment gateway tapped with more security purposes for merchants' secure transactions, it has gained prominence in the global market. Furthermore, all hosted payments are conducted in accordance with the PCI-DSS standards, which meet the compliance requirement, which increases the utility of hosted medium and ultimately contributes to the growth of the global payment gateway market.

Retail will grow exponentially in terms of end-use over the next few years, contributing to the growth of the global payment gateway market. The shift in consumer purchasing habits toward online purchases has resulted in the expansion of the retail sector. This is one of the most important factors influencing the growth of the global payment gateway market. Furthermore, as a result of the advent of digitalization and increasing smart phone utility, large enterprises have completely shifted their focus to selling products through online retail platforms in order to capture the lion's share of the market. This contributes to the retail sector's growth.

Regional Landscape

North America dominates; Asia Pacific fastest records fastest growth for payment gateway market

North America has dominated the payment gateway market in the past and will continue to do so during the forecast period. The revenue generated in North America is due to the large consumer base's accelerated shift to digital channels. This has received a lot of attention because of the increased influx of credit cards, which are considered to be the largest source of payment in the region by about 44%.

Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the payment gateway market. Rising consumerism, a high influx of digital economy and adoption, and an influx of startups are the major factors driving the region's phenomenal growth. According to the ORF report, digital economies, specifically India and South East Asia (SEA), are on the rise as a result of e-commerce, ride hailing, food delivery, and the hyper local service sector. E-commerce is the largest sector in SEA, with a projected value of US$123 Bn by 2025. Furthermore, startups fuel digital innovations. India is home to 72% of startups, with the SEA region accounting for 24% and Australia accounting for a meager 4%.

Competitive Landscape

The prominent players of the global payment gateway market involve Due, PayPal, Stripe, Flagship Merchant Services, Payline Data Services LLC, Square Capital, LLC, Adyen, BitPay, GoCardless Ltd., Cayan, and among others

Market Segmentation

Market By Type


Market By Enterprise Size

Large Enterprises
Small & Medium Enterprises

Market By End Use

Media & Entertainment
Retail & E-commerce
Travel & Hospitality

Market By Geography

North America
•    U.S.
•    Canada

•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa

Frequently Asked Questions

Payment gateway market is expected to reach a market value of around US$ 90.5 Bn by 2028.

The payment gateway market is expected to grow at a CAGR of around 12.6% from 2021 to 2028.

Based on type, hosted segment is the leading segment in the overall market.

Rising adoption of digitization is one of the prominent factors that drive the demand for payment gateway market.

Due, PayPal, Stripe, Flagship Merchant Services, Payline Data Services LLC, Square Capital, LLC, Adyen, BitPay, GoCardless Ltd., Cayan, and among others.

North America is anticipated to grab the highest market share in the regional market

Asia Pacific is expected to be the fastest growing market in the forthcoming years

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