Online Payment Gateway Market Analysis

Online Payment Gateway Market Overview

The Online Payment Gateway Market is projected to grow from USD 34222.63 million in 2024 to USD 80759.7 million by 2032, exhibiting a compound annual growth rate (CAGR) of 11.33% during the forecast period (2024 - 2032). Additionally, the market size for online payment gateway was valued at USD 30748.1 million in 2023.

Online payment gateway enables transfer of information between front end processor, for instance, bank and payment portal such as website and mobile apps. The payment gateways ensure proper transaction with considering all aspect to facilitate the safe and secure transaction.

Figure 1: Online Payment Gateway Market Size, 2023-2032 (USD Billion)

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Online Payment Gateway Market Driver

Increasing digital payment transactions in e-commerce and M-commerce

The advent of e-commerce is transforming the retail business landscape. The start-up firms are capturing new opportunities in the electronic marketplace through innovative business models. The established firms are looking to transform their old business models as per the new environment. E-commerce is generating wealth, mostly through entrepreneurial start-ups and corporate ventures.

The government organizations across the globe are encouraging digital transactions that has led to the development of card payment platform such as payment gateways. Payment gateways are used as a transactional authority while paying on any merchant website via credit cards, debit cards, and charge cards. Since the introduction of Interchange Fee Regulation, the use of debit cards has become even cheaper for both merchants and their customers. Moreover, debit card processors like Paymill serves the e-commerce transaction needs worldwide. It does not charge any monthly or set-up fees, thus making it an attractive choice for e-commerce merchants, looking for a flexible and scalable payment processor.

The increasing penetration of smartphones, tablets and other Internet-enabled devices is fueling the m-commerce market. M-Commerce reduces overhead costs and increases transactional efficiency by eliminating physical presence of the user and other intermediaries. Advances in wireless and mobile technologies are expected to increase the number of transactions over the forecast period. Increasing mobile Internet usage owing to improved bandwidth is expected to drive the m-commerce market. Furthermore, mobility in m-commerce transactions enable a broader reach, which is expected to drive the market further. The aforementioned factors are likely to drive the growth of the online payment gateway market.

Online Payment Gateway Market Segment Insights

Online Payment Gateway Type Insights

A payment gateway is a service that is used by e-commerce businesses to manage online payment transactions done by customers through debit or credit cards. On the basis of the type of payment gateway, the market has been segmented into Hosted Payment Gateways, API/Non-Hosted Payment Gateways, Pro/Self-Hosted Payment Gateways, Local Bank Integrates, Direct Payment Gateways, and Platform-Based Payment Gateway Solution. API/Non-Hosted Payment Gateways segment is expected to grow rapidly during forecast period.

Online Payment Gateway Application Insights

A commercial bank or financial service provider can provide the services of payment gateways enabling safe and secure transaction. On the basis of application, the market is segmented into micro and small enterprise, large enterprises, and mid-size enterprise. Micro & Small Enterprise applications expected to grow rapidly during forecast period.

FIGURE 2: ONLINE PAYMENT GATEWAY MARKET SIZE (US$ Mn) BY INDUSTRY VERTICAL 2022 VS 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Online Payment Gateway Regional Insights

Geographically, North America is expected to have a significant share of the Online Payment Gateway Market during the projected period.

North America holds the maximum market share in the Online Payment Gateway Market. When it comes to the online payment gateway market, North America is one of the most developed regions in the globe. The region, which includes the United States, Canada, and Mexico, has a well-developed infrastructure, cutting-edge technology, and a sizable population of tech-savvy customers. As a result, it is a vital market for providers of online payment gateways.

The North American internet payment gateway market is highly competitive, with a significant number of competitors offering a variety of payment options. PayPal, Stripe, Square, Amazon Payments, Authorize.net, Braintree, and 2Checkout are among the market's key players. These businesses provide a variety of payment options, including mobile payments, digital wallets, payment processing services, and others.

The expansion of e-commerce and the increasing acceptance of online payments have been the primary drivers of the North American online payment gateway market. For convenience and ease of use, consumers in the region are increasingly turning to online shopping and digital payments. The COVID-19 pandemic has intensified this tendency, with many consumers preferring online shopping and contactless payments to avoid infection.

US is a major market for online payment gateway due to rising automation and increased adoption of industry 4.0 in the region. The region especially the US has the presence of a large number of online payment gateway provider including PayPal Holdings, Inc., Stripe, 2Checkout, and Amazon.com, Inc. Additionally, the region being technologically advanced countries are rapidly adopting online payment gateway technology for increasing demand for online payment.

FIGURE 3: ONLINE PAYMENT GATEWAY MARKET SHARE BY REGION 2022 VS 2032 (US$ Mn)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Online Payment Gateway Key Market Players & Competitive Insights

The Online Payment Gateway market has witnessed significant growth over the forecast period due to increasing digital payment transactions in e-commerce and m-commerce, and the need for user-friendly methods for online payment and reservations. There are several domestic, regional, and global players operating in the Online Payment Gateway market who continuously strive to gain a significant share of the overall market. During the study, MRFR analyzed some of the major players in the US & India Online Payment Gateway market who have contributed to the market growth. These include PayPal Holdings, Inc., Authorize.Net, Stripe, Inc, Verifone, Amazon Pay, PaySimple, BlueSnap Inc., Global Payments Inc., WorldPay by FIS, CCBILL, LLC., Fiserv, Inc, and Infibeam Avenues.

Among these, are Stripe, Inc., WorlPay Inc., PayPal Holdings, Inc, Global Payments Inc., First Data Crop. (Fisrerv, Inc)are among the top 5 players in the US & India Online Payment Gateway market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.

Stripe, inc follow the strategy of strategic acquisition and collaboration with another industry player to for technological enhancement and product development. The company’s mission is to increase the GDP of the internet and provide solutions for startups to public companies to effectively manage their business online.

FIS has established a reputation for innovation and thought leadership in the financial services and merchant industries. The company has extensive experience in the areas and domains it serves, allowing it to create various unique software products and service solutions. To improve the quality and speed of bringing new products to market, the organization has implemented a new enterprise commercialization approach. Looking ahead to 2021, the company has a highly differentiated business model to achieve unequaled global scale and delivery resources and a robust portfolio of end-to-end solutions, and a defined growth strategy.

July 2019 FIS strengthened its global technology leadership, serving merchants, banks, and capital market presence by acquiring Worldpay, one of the world's largest global eCommerce and payment technology firms. The combined firm will have a pro forma revenue of approximately USD 12 billion and over 55,000 workers. As a result, FIS is well-positioned to drive its growth and advance the way the world pays, banks, and invests with a best-in-class portfolio of solutions for payments, banking, and capital markets.

May 2021 Stripe, Inc acquired Bouncer a card authentication technology company. The acquisition will be helpful for Stripe, Inc to enhance its security through the use of the Bouncer machine learning-based fraud prevention tool.

Key Companies in the Online Payment Gateway market include

• PayPal Holdings, Inc.


• Stripe, Inc,


• Verifone,


• Authorize.Net,


• Amazon Pay,


• PaySimple,


• BlueSnap Inc.,


• Global Payments Inc.,


• WorldPay by FIS,


• CCBILL, LLC.,


• Fiserv, Inc,


• Infibeam Avenues

Online Payment Gateway Industry Developments

June 2022 Amazon.com, Inc announced it has reached 85 lakhs small and medium businesses in India, Amazon.Com, Inc offers services such as business QR codes and voice notification features to these stores helping merchants excel in business.

November 2022 BlueSnap and Gaviti, an automated A/R collection company, announced a partnership to help businesses create automated and easy-to-use A/R collection methods. The partnership aims to streamline and optimize the payment processing system.

August 2022 Global Payments Inc. entered a definitive agreement to acquire EVO payments, an online payment provider company. The acquisition will help strengthen Global Payments Inc.'s presence in newer geographies.

June 2022 PayPal today announced the expansion of its credit card offerings for a small business operating in the US. The credit card is issued by a web bank and powered by MasterCard, the launch of the credit card is a strategic company move for expanding its company vertical and generating new revenue stream.

Online Payment Gateway Market Segmentation

Online Payment Gateway Type Outlook

• Hosted Payment Gateways


• API/Non-Hosted Payment Gateways


• Pro/Self Hosted Payment Gateways


• Local Bank Integrates


• Direct Payment Gateways


• Platform-Based Payment Gateway Solution

Online Payment Gateway Application Outlook

• Micro & Small Enterprise


• Mid-size Enterprise


• Large Enterprise

Online Payment Gateway Industry Outlook

• BFSI


• Retail & E-Commerce


• Media & Entertainment


• Travel & Hospitality


• Others

Online Payment Gateway Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  • Europe
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa


• South America