As per the report published by Fior Markets, the payment processing solutions Market is expected to grow from USD 76.7 billion in 2020 to USD 161.8 billion by 2028, at a CAGR of 9.78% during the forecast period 2021-2028.
Customers’ growing preference for online shopping has forced merchants to use payment processing services. These tools assist merchants in reducing the risk of fraudulent transactions while also improving customer service. Machine learning and Artificial Intelligence (AI) technologies are used by Payment Processing Solutions as anti-fraud tools. Furthermore, these solutions are simple to connect with POS systems, resulting in increased industry growth. The market is projected to expand as a result of numerous reasons such as changing customer expectations, technological improvements, and a strong infrastructure. Market development is expected to be fueled by government regulations and efforts that encourage digital transactions. The need for fast settlements and payments by customers is likely to drive industry expansion. Customers’ expectations of the immediacy of the payment experience have changed as a result of the convenience and speed of online buying. Customers demand speedier transaction services from businesses across the board. Furthermore, smartphone technology has enabled users to use mobile apps to access an ever-expanding selection of services.
The need for fast settlements and payments by customers is likely to drive industry expansion. Customers’ expectations of the immediacy of the payment experience have changed as a result of the convenience and speed of online buying. Customers demand speedier transaction services from businesses across the board. Furthermore, smartphone technology has enabled users to use mobile apps to access an ever-expanding selection of services.
Several large payment processing companies are creating new solutions in the middle of the COVID-19 pandemic problem to meet the growing demand for contactless transactions. AliPay, for example, announced a post-COVID-19 effort that uses mini-programs to enable contactless payments in third-party apps. Additionally, despite many businesses’ logistical difficulties, eCommerce sales have grown globally since the lockdown, notably for food and health items. Since the COVID-19 epidemic, for example, online retail order volumes for some items have increased by more than 200 percent in the United Kingdom.
Key players operating in the payment processing solutions market are Fidelity National Information Services Inc. (FIS), Authorize.Net, Dwolla Inc., Adyen N.V., First Data Corporation, Fiserv Inc., Global Payments Inc., Mastercard Incorporated, PayPal Holdings, Inc., and Visa Inc. To earn a significant market share in the payment processing solutions market, the key players now focus on adopting product innovations, mergers & acquisitions, recent developments, joint ventures, collaborations, and partnerships.
- In October 2020, Rapid Financial Network Ltd., a prominent Fintech business, launched all-in-one payment processing solutions for the South Korean market. The payment solution, according to the business, would likely help in the smooth processing of payments and will provide a platform for seamless transactions between mobile wallets and foreign cards.
The credit card segment dominated the market and held the largest market share of 47.89 in the year 2020
Based on the payment method, the payment processing solutions market is segmented into credit cards, debit cards, and e-wallets. The credit card payment segment dominated the payment processing solutions and held the largest market share of 47.89% in 2020. During the projection period, the credit card sector will have the biggest market size. A credit card is a payment card provided to users (cardholders) that allows them to pay a merchant for products and services and pay them for the amounts as well as the additional charges that have been agreed upon. The card issuer (typically a bank) opens a revolving account for the cardholder and extends a line of credit from which the cardholder can borrow money to pay a merchant or get a cash advance. A credit card allows users to develop a long-term debt load that is subject to interest charges.
The hospitality segment dominated the market and held the largest market share of 39.78% in the year 2020
Based on application, the payment processing solutions market is segmented into Hospitality, Retail, Utilities, and Telecommunication. The Hospitality application segment dominated the payment processing solutions market and held the largest market share of 39.78% in 2020. Food and drinks, event organizing, transportation, accommodation, and travel all fall under the umbrella of the hospitality business. A hospitality unit, such as a hotel or restaurant, is made up of several groups, including direct operations and property maintenance, all of which are concentrating on implementing Payment Processing Solutions. Additionally, visitors all around the world are growing more reliant on their cell phones and prefer to pay for products and services online.