The global payment gateways market is set to grow by MYR 52.33 billion (USD 11.23 billion) from 2024 to 2028, driven by the increasing adoption of contactless payment solutions and NFC technology, despite the high costs of PoS terminals. Major market players are innovating to meet the evolving demands of secure, convenient, and efficient online transaction processing.
4 July 2024 – The global payment gateways market is projected to expand by MYR 52.33 billion (USD 11.23 billion) from 2024 to 2028, according to a report by Technavio. The market is expected to grow at a compound annual growth rate (CAGR) of approximately 13.42% during this period. The surge in the adoption of contactless payment solutions, particularly the rise of Near Field Communication (NFC) technology, is a key driver of this growth. However, the high operating and maintenance costs of Point of Sale (PoS) terminals remain a significant challenge.
Leading companies in the market include Adyen NV, Amazon.com Inc., B2Broker Ltd., BitPay Inc., Block Inc., CCBill LLC, Fidelity National Information Services Inc., Global Payments Inc., Infibeam Avenues Ltd., Ingenico Group SA, JPMorgan Chase and Co., Mastercard Inc., MIH PayU BV, One97 Communications Ltd., Payoneer Global Inc., PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Stripe Inc., VeriFone Inc., and Visa Inc.
NFC technology facilitates data exchange between devices in close proximity, necessitating NFC chips in both devices. It supports both one-way and two-way communication, enabling retailers like Target, Macy’s, and Walgreens to use NFC-based contactless payment terminals for mobile transactions. In 2021, more than 40% of PoS terminals were NFC-enabled, with widespread adoption in countries such as the US, UK, China, Canada, Brazil, and India, driven by the prevalence of NFC-enabled mobile handsets. Vendors like Verifone, offering NFC-enabled PoS terminals, are contributing significantly to the growth of the global payment gateways market.
In the current digital business environment, payment gateways are crucial for securely and efficiently processing online transactions. The market for payment gateways is flourishing, with numerous providers offering a range of features and functionalities. Consumers now expect seamless and convenient payment experiences, which has led to the integration of multiple payment methods, such as cards, digital wallets, and bank transfers. Merchants, prioritizing security and reliability, are adopting advanced technologies like tokenization and encryption. The rise of mobile commerce and cross-border transactions is also fueling the expansion of the payment gateways market. Overall, the market remains dynamic and competitive, with providers continuously innovating to meet the evolving demands of businesses and consumers.
