Rising Need For Contactless Payments Projected To Surge Global Payment Processing Market Growth
Payment processing is the integrated technological offerings that functions in partnership with the customer and trader to carry out the financial transactions with the creation of a payment gateway that works on a set of factors pre-structured by the trader. These solutions function as a middle man between the customer and merchant account offering well-organized financial flow. The escalated penetration of smartphones along with acceptance of mobile payment applications is the key factors driving the global payment processing market. The smartphone applications are offering substitute billing options to consumers with the assistance of card-reader services and attachments. These applications have facilitated consumers to make quicker and simpler billing transactions.
Further, the rising inclination of consumers to online shopping has forced stores to choose payment processing solutions. These support sellers to reduce the threat of fraudulent transactions and enhance customer service with the assistance of latest technologies such as Artificial Intelligence and machine learning. Moreover, during the current COVID-19 pandemic situation, numerous prominent market players are building new products to fulfill the increasing requirement for contactless transactions. To cite, in early October 2020, Noida-based Paytm introduced an all-in-one, pocket-sized Android PoS device — a lively gadget that looks like a smartphone, though is as great as a smart point-of-sale device.
The global payment processing market can be divided on the basis of payment method, mode of deployment, end-use, and region. the market, by payment method, is categorized into debit card, e-wallet, and credit card. Among these, the largest market share was held by credit card segment in 2019. Further, the e-wallet segment is projected to observe the quickest expansion during the forecast period owing to rising penetration of laptops and smartphones globally along with high convenience and payment processing speed offered by these solutions. The market, by mode of deployment, is segregated into cloud-based and on-premise. The market, by end-use, is classified into retail, hospitality, telecommunication & utilities, and others.
Regionally, in 2019, the global payment processing market was dominated by North America. The regional expansion can be credited to elevated implementation of digital payment solutions in this region. Asia Pacific is also anticipated to witness substantial growth rate in the years to come on account of rising implementation of smartphones together with internet services.
The key players active within the global payment processing market consist of PayPal, Stripe, Square, Adyen, First Data, Wirecard, Global Payments, WorldPay, PayU, BlueSnap, PaySimple, PayPro Global, and Authorize.Net. The players are undertaking the collaboration activities to grow their product portfolio and acquire a market share.