Online Payment Gateways Market By Type (Hosted Online Payment Gateways, Self-Hosted Payment Gateways, API Online Payment Gateways, Local Bank Integration, Direct Payment Gateways, Platform-Based Payment Gateways), By End-User (Travel & Hospitality, Food & Groceries, Pharmaceuticals & Healthcare, Shopping, Education, Government/NGOs, Utilities) - Growth, Share, Opportunities & Competitive Analysis, 2018 – 2026

Rapidly Growing E-commerce Sector Will Ensure Strong Online Payment Gateways Market Growth Between 2018 and 2026.

The overall online payment gateways market is expected to grow at a rapid pace from 2018 to 2026, increasing from US$ 13.50 billion in 2017.Payment gateways facilitate the payment process for consumers who prefer to pay with credit or debit cards. With the e-commerce industry demonstrating rapid growth over the past few years, online payment gateways have emerged as the backbone of the e-commerce industry. Credit and debit cards remain the most preferred mode of online payment across numerous countries worldwide. As a result, payment gateways have seen widespread adoption over the years. The overall online payment gateway market is highly driven by the consistently growing e-commerce sector across the globe. Additionally, increasing inclination toward digital payment methods plays a major role in payment gateways' market growth. Various banks, as well as national governments, are encouraging digital payment methods with a view to reducing operating costs and enhancing transaction transparency.

Market Synopsis

Hosted Online Payment Gateways to Continue Leading the Market Throughout the Forecast Period

In 2017, the hosted online payment gateways segment dominated the overall market, acquiring nearly 40% of the total market share in terms of value. Hosted online payment gateways offer an easy payment procedure for both consumers and merchants. In addition, it eliminates the involvement of merchants in the payment process, enabling them to focus on their core competencies. These payment gateways charge low fees, making them more affordable for merchants as well as consumers. As a result, the segment would continue dominating the market throughout the forecast period.

Asia Pacific's Growing E-commerce Sector Will Ensure High Market Growth

In 2017, North America held the largest share, in terms of value, in the overall online payment gateways market, accounting for over 1/3 of the global market value. The region would continue to dominate the market throughout the forecast period due to high digital payment penetration and a large e-commerce sector. Asia Pacific is set to register the highest growth rate in the market during the forecast period. Driven by China, Japan, and India, the rising e-commerce industry in the region is expected to ensure double-digit growth for the Asia Pacific online payment gateways market over the forecast period. According to the India Brand Equity Foundation (IBEF), the Indian e-commerce industry was worth US$ 38.5 billion in 2017 and is expected to reach US$ 64 billion by 2020. The Asia Pacific e-commerce sector is primarily backed by the continually growing number of internet users and credit card holders, thereby supporting the online retail sector here. With people gaining confidence in online payment methods, the region would demonstrate the highest growth rate throughout the forecast period.

Outside of North America, the market for online payment gateways will remain fragmented.

The overall online payment gateway market is highly competitive, with major market players placing emphasis on service enhancement. Because of the high risk of fraud and data theft in online payments, the market is highly regulated. Online payment gateway vendors are challenged by numerous rules and regulations, including banking norms, anti-money laundering, data protection, consumer financial protection, and other payment regulations. Market participants emphasize client retention by forming alliances with credit/debit card companies such as Visa, Inc. and MasterCard, Inc. to streamline the payment process and reduce processing fees. Some of the major players profiled in the report include 2Checkout.com, Inc., Alipay.com Co., Ltd., Amazon.com, Inc., Authorize.Net Corporation, Avangate, Inc., Avenues India Pvt. Ltd. (CCAvenue), BluePay, Inc., First Data Corporation, PayPal Holdings, Inc., SecurePay (OLB Group, Inc.), Stripe, Inc., and others.

Periods of History and Forecast

2016: Historic year.

2017: Base Year

2018–2026: Forecast Period

This research report presents the analysis of each segment from 2016 to 2026, considering 2017 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments was calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

The online payment gateways market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of the global online payment gateways market based on type, end-user, and geography.

Type Segment (US$ BN; 2016-2026)

  • Hosted Online Payment Gateways
  • Self-hosted Online Payment Gateways
  • API-Hosted Payment Gateways
  • Local Bank Integration
  • Direct Payment Gateways
  • Platform-based Payment Gateways

End-user Market (2016-2026; USD Billion)

  • Travel & Hospitality
  • Food and grocery shopping
  • Pharmaceuticals and Healthcare
  • Shopping
  • Education
  • Government/NGOs
  • Utilities

Geography (2016-2026; USD Billion)

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Italy
    • U.K.
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East and Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East and Africa

This report's distinct data points

  • Statistics on the e-commerce sector worldwide
  • Preferred mode of payment for e-commerce across different regions and countries
  • Recent trends across different regions in terms of the adoption of digital payment technology
  • attractive investment proposition for the end-user segment as well as geography
  • Comparative scenario for all the segments for years 2017 (actual) and 2026 (forecast)

Frequently Asked Questions:

The market for Online Payment Gateways Market is expected to reach US$ 13.50 Bn by 2026.

The Online Payment Gateways Market is expected to see significant CAGR growth over the coming years, at XX%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

Amazon.com, Inc., Authorize.Net Corporation, Avangate, Inc., Avenues India Pvt. Ltd. (CCAvenue), BluePay, Inc., First Data Corporation, PayPal Holdings, Inc., SecurePay (OLB Group, Inc.), Stripe, Inc are some of the major players in the global market.

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Published Date:  Jul 2018
Category:  Technology & Media
Report ID:   59223
Report Format:   PDF
Pages:   120
Rating:    4.3 (40)
Delivery Time: 24 Hours to 48 Hours   
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