APAC’s rising influence driving growth in the global payment gateways market, research reveals

By Puja Sharma

The global payment gateways market size is estimated to grow by $8551.26 million from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of almost 11.72% during the forecast period. APAC held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 30%.

APAC is expected to play a pivotal role in propelling the global payment gateways market

Geographic Landscape:

The Payment Gateways Market in APAC is experiencing significant growth due to the increasing adoption of digital payments. Consumers in sectors such as e-commerce and BFSI are utilizing payment gateway solutions integrated with online platforms and hardware devices like smartphones and PoS systems for secure online transactions. India and Japan lead the market, particularly in the UPI industry. Amidst the pandemic, the shift towards a cashless economy has accelerated, with platforms like Flipkart-owned PhonePe and Worldline facilitating digital payments through bank apps, mobile-based apps, and internet banking. However, security concerns persist, including phishing, denial of services, and cyberattacks, which could result in financial losses and business interruptions.

Merchants, both large and small, require cost-effective and secure hosted payment solutions to meet consumer inclination towards digital channels. Despite these challenges, the coronavirus outbreak has further fueled the growth of online money transfers and online services.

Research Analysis

In today’s cashless economy, the use of payment gateways for online transactions has become increasingly prevalent. With the coronavirus outbreak driving consumer inclination towards contactless payments and record highs in e-commerce sector growth, the market for payment gateways is experiencing significant expansion.

Merchants, including micro merchants, are turning to digital payment solutions to offer consumers a more cost-effective and convenient shopping experience. Worldline, a leading merchant acquiring and digital payment services provider, plays a crucial role in this digital infrastructure. However, with the rise of online services comes the risk of cyberattacks, leading to financial losses and business interruptions. Payment gateways must prioritize security to mitigate these risks and maintain consumer trust. Bulk transactions require robust and efficient payment gateway systems to ensure seamless processing and minimize potential delays.

Market Drivers

The payment gateways market has experienced record highs due to the increasing preference for online money transfers and mobile-based apps. With the advent of Internet banking and digital wallets, consumers are increasingly opting for contactless services and faster transactions. Big players, including Paystack and Worldline, offer NFC-based mobile payment options, such as Apple Pay and Samsung Pay, for onsite payments and bulk transactions.

Security concerns, including phishing, denial of services, and cyberattacks, have been mitigated through hosted payment solutions and the use of secure PoS terminals. The coronavirus outbreak has further accelerated the shift towards digitalization and online services, with the e-commerce sector experiencing significant growth. Despite these benefits, financial losses and business interruptions due to cyberattacks remain a concern. As consumers continue to incline towards online payments, payment processing companies must prioritize security and customer relationships to maintain trust and build a cashless economy.

Market Overview

Payment gateways are essential components of online businesses, enabling secure and efficient transaction processing. The market for payment gateways is expanding, with various solutions catering to different industries and business sizes.

Consumers expect convenient, reliable, and secure payment methods, driving the demand for advanced payment gateways. Merchants require payment gateways that offer flexibility, ease of integration, and support for multiple payment methods. Some popular payment gateways include PayPal, Authorize.net, Sensitive, and Stripe. These gateways offer features such as fraud protection, recurring billing, and tokenization. Card payments, digital wallets, and bank transfers are common payment methods supported by payment gateways.

Consumers prefer gateways that offer multiple payment options, ensuring a seamless checkout experience. Moreover, the increasing popularity of mobile commerce has led to the development of mobile payment gateways. These gateways enable businesses to accept payments through various mobile channels, including mobile apps and mobile websites. In conclusion, the payment gateways market is dynamic and competitive, with various solutions catering to diverse business needs. Merchants and consumers alike benefit from the convenience, security, and flexibility offered by payment gateways.