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According to a recent study from market research firm Global Market Insights, the payments processing solutions market is set to grow from its current market value of more than $60 billion to over $140 billion by 2026, gaining remarkable traction over the 2020 to 2026 period.

The payments processing solutions market is set to record significant gains over the forthcoming timeframe due to the increasing digitalization of payment methods, growing adoption of mobile wallets, and increasing popularity of cashless transactions. As the consumer preference for m-commerce rises, in tandem with the high penetration of smartphones, the preference for payment processing solutions is becoming more and more apparent.

Payment processing refers to how transactions are being automated between the merchant and the customer. Online payment processing further enables merchants to allow for any add-on payment methods, simply by setting up recurring payments, or approving transactions remotely. In other words, a payment gateway means software that interfaces in a secure manner between an eCommerce website and a customer’s preferred payment mode.

The mode of payment could be the customer’s bank account, gift card, debit card, credit card, or any other online wallets. A few examples of recognized payment gateways are Amazon Payments, PayPal, BrainTree, PayTM, Skrill, PayU among many others. As per research, nearly 86 percent of customers make online purchases via debit or credit cards, and more than 60% consider it to be their preferred method of payment while making a purchase.

At present, mobile payment acceptance is helping to satisfy the coming generation of customers with simple and seamless payment experiences. Mobile devices such as tablets and smartphones are changing the way business is done.

The payments processing solutions market is divided into different segments in terms of technology, deployment model, mode of payment, organization size, end-use, as well as regional landscape.

In terms of end-use, the overall payments processing solutions market is categorized into government and public sector, BFSI, healthcare, retail & commerce, and tourism and hospitality. Among these, BFSI end-user segment is anticipated to witness a respectable CAGR of more than 9% over the projected time period. The segmental growth is chalked up to the increasing digitalization of payment methods across the BFSI sector.

Government & public sector segment will witness substantial growth over the coming time period. In fact, in 2019, the segment held a market share of over 8% due to the increasing popularity of cashless transactions in federal agencies.

From a regional frame of reference, the Latin American payments processing solutions market will witness a CAGR of more than 13% through the forthcoming time period owing to the increasing penetration of mobile wallets in the region.

Meanwhile, Middle East & Africa is set to record momentous gains in the upcoming time period. In 2019, the region held over 5% industry share of the overall market. This anticipated growth is ascribed to the increasing consumer’s preference towards m-commerce. In fact, high social and digital penetration in the Gulf states or GCC has led consumers to shift to mobile or m-commerce.

Source: https://www.gminsights.com/industry-analysis/payment-processing-solutions-market

Chicago, IL – Many US merchants that place mobile at the core of their e-commerce strategy are reaping big rewards with “m-commerce” sales of $59 billion in 2014, up 74 percent from $34 billion in 2013, according to the Internet Retailer’s latest 2015 Mobile 500 report.

Mobile sales, the report said, will account for 23 percent of total 2014 online sales of the US merchants analyzed in the report.

By contrast, e-retail sales in the US grew 15.7 percent in Q2 2014, according to the US Commerce Department. With their combined $30.8 billion in 2014 mobile sales, No. 1-ranked Amazon.com and No 2.-ranked Apple Inc. command a 37 percent share of total Mobile 500 “m-commerce” sales, the report found.

“But since the mobile commerce market is far from mature, there’s still plenty of room for growth and new players, both domestically and internationally,” it said.

The 134 overseas retailers studied in the 2015 Mobile 500 are expected to reach $25 billion in “m-commerce” sales in 2014, up an impressive 96 percent from $13 billion in 2013.

The report estimates that the world’s 500 largest mobile commerce businesses combined will increase their mobile sales by 80 percent in 2014 to more than $84 billion.

“The quantum leap in mobile sales growth worldwide is prompting many retailers to prioritize their tech spending and match consumers’ online shopping behavior, which leans toward mobile shopping on apps as opposed to shopping on a mobile web site,” the report said.

“Mobile commerce is like a hurricane rearranging the coastline of e-retailing,” said Internet Retailer publisher Jack Love in Chicago. “For e-retailers trying to ride the wave rather than being swamped by it, the 2015 Mobile 500 is a survival guide to e-commerce in the mobile age.”

08/20/2014

Payments Processing Solutions Market to Witness Steady Growth During 2020-2026

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