A payment gateway is a well-known technology used by merchants to allow debit or credit card purchases from clients. The increasing application of mobile banking channels and the increasing demand for instant-mobile-based payments are likely to provide compelling market opportunities. The global market for payment gateway is anticipated to grow a market value of US$ 22 Bn in 2021.
The Reasons Behind the Growth of Payment Gateway Market:
· Role of E-Commerce
There has been an enormous growth of 13-20% increase in e-commerce in recent years. The increasing partnerships among e-commerce companies are expected to boost the market to grow high. The retail and e-commerce segment remain high in the market and is expected to grow more than 24% of the market share. The growth of the segment can be associated to the increasing number of online transactions in retail and e-commerce across the world.
For Example, Yes Bank collaborated with Amazon Pay and Amazon Web Services to offer a real time payment system via UPI transaction. On the other hand, the technological advancements and the growing internet invasion in developing nations are likely to develop the demand for payment gateway systems in the course of time.
· Mobile-based Payment Apps
The technical development in the mobile-based payment apps and the increasing internet invasion are expected to play a significant role in growing the market in the course of time.
For Example, in 2020, British Government invested USD 5.9 Bn in their rural areas to offer faster internet services. This proves the important they are providing to the digital payments and the future demand of the payment gateway market.
· Role of Enterprises
SMEs are expected to see the highest market growth in the forecast period. SMEs are prolific significant demand for payment gateways systems for efficient methods of payment. Moreover, the large enterprise segment is expected to have attain about 55% of the global revenue.
Conclusion:
The world is running behind the digital market to ease every process. Payment is one among them. The transaction is the major part of every business. Going digital in payments ease the work and keeps everything in the record. This technology development in the payment gateway market has a huge scope and investment related to payment will also get high in course of time.
