Payment Processing Solutions Market is Expected to Reach $146.45 Billion By 2030

According to a recent report published by Allied Market Research, titled, “Payment Processing Solutions Market By Component, Deployment Mode, Payment Method, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021-2030,”. The global payment processing solutions market size was valued at $39.57 billion in 2020, and is projected to reach $146.45 billion by 2030, growing at a CAGR of 13.7% from 2021 to 2030. 

Payment processing companies are increasingly designing next-generation solutions for consumer and enterprise-oriented services. In addition, government agencies are also demanding for a need to shift toward modern payment processing tools and techniques. The payment processing companies integrate several emerging technologies such as Europay, Mastercard and Visa cards (EMV), blockchain, near field communication (NFC), and also integrates Payment Card Industry Data Security Standard (PCI DSS) compliance to maintain a secured payment environment.

Factors such as increased smartphone penetration & incorporation of online payment solutions, rise in e-commerce sales, and rapid digitalization in payment processing industry propel the market growth. In addition, government’s support & initiatives toward payment processing industry and untapped potential of emerging economies are expected to provide lucrative opportunities for the payment processing solutions provider in the coming years.

On the basis of component, the solutions segment acquired the major share of payment processing solutions market. This is attributed to the fact that several industries are implementing processing solutions with better technology capabilities in order to improve their business operations, which is therefore driving the payment processing solutions market growth of this segment during the forecast period.

Region wise, the payment processing solutions market was dominated by North America in 2020, and is expected to maintain this trend during the forecast period. This is attributed to increased demand for innovative payment processing solutions among banks & financial institutions and surge in utilization of e-wallet payment, which offers relevant rewards & incentives among customers. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period, due to high investments for digitalized payment platforms, adoption of new technologies such as artificial intelligence, analytics, big data, and rapid expansion of domestic business.  

COVID-19 Impact Analysis

The COVID-19 pandemic has a positive impact on this industry. Various banks and fintech industries are adopting advance solutions to enhance smooth, secured, and hassle-free payments. In addition, rise in COVID-19 patients across the globe has led many businesses and individuals to adopt online payment options. Therefore, demand for payment processing solutions have increased significantly during the global health crisis. 

Significant rise in adoption of online payments by end users, owing to rise in patients of corona virus and growth in health issues in carrying cash and paying through cash. In addition, banks and fintech industries are providing customers with options of multiple payment channels across the globe to speed up their transaction process. Therefore, demand for payment processing solutions among banks & financial institutions continue to rise to reduce their operational cost & improve digital experience among their customers. These factors further accelerate the payment processing solutions market during the global health crisis.  

Key Findings of the Study

• By component, the solution segment led the payment processing solutions industry, in terms of revenue in 2020. 
• On the basis of payment method, the cards segment accounted for the highest payment processing solutions market share in 2020.
• Region wise, North America generated the highest revenue in 2020.  

The top companies in the payment processing solutions market analysis are ACI Worldwide, Elavon Inc., FIS, Fiserv, Inc., Global Payments Inc., GoCardless, PayPal, Square, Inc., Stripe, and Wirecard CEE. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.