Payment Gateway Market Outlook: Trends for the Near Future

The rapidly increasing interest in online shopping and the need for secure digital payments that comes with it make a variety of businesses search for smart FinTech solutions. Thus, the integration of a payment gateway has already become a key aspect of every business conducting sales online.

The upward trend is obvious, but which market aspects will change to match it? Read on for a detailed overview of the tendencies that are predicted to transform the payment gateway market in the near future.

Current Payment Gateway Market Insights

Before reviewing the fresh trends of the payment gateway market, it’s crucial to understand its current state. Here are a few insights:

• Growing internet penetration. 62.5% of the world's total population were using the Internet as of January 2022, accounting for 4.95 billion people around the world. These numbers are growing year after year at an impressive rate of 4% annually.
• Shift toward online payments. Consumer behavior changes in response to various factors. For instance, the increase in internet users and their familiarity with the world wide web leads to people choosing online transactions over traditional payments more and more often.
• Increasing bank services’ digitalization. Banks that wish to stay competitive are actively embarking on the digital transformation journey by implementing Cloud technology, advanced cross-border payment technologies, smart routing systems, and beyond.
• Cybersecurity risks. As online trade evolves, so do the risks associated with fraud. Thus, more sophisticated cybersecurity methods are required.

While some of these factors are more positive than others, all of them equally contribute to the demand for the availability of reliable payment gateway solutions.

5 Major Trends Expected to Shape the Payment Gateway Market

The payment gateway market is the area of FinTech that is forecasted to demonstrate plenty of innovation in the coming years. Here are the most significant trends that are likely to drive change in the payment and cybersecurity industries:

1. Versatile FinTech Solutions Arising

Since the demand for efficient payment gateways has become evident, it is now prompting industry players to establish more sophisticated solutions to remain competitive. For example, instead of a traditional payment gateway, companies are likely to offer all-in-one platforms that combine it with multiple other functionalities.

2. Rising Demand for Local Bank Integrated Payment Gateways

The tendency toward the digitization of financial services contributes to the demand for a local bank integrated payment gateway. This type of payment gateway sends the consumer to a bank page during a transaction, where they can enter their payment data. It is an easy-to-integrate and efficient solution, which explains the growing trend for its adoption and the anticipated CAGR exceeding 15% till 2027.

3. Increasing Payment Gateway Adoption Rate Among SMEs

Small and medium enterprises are adopting payment gateways at a fast pace. The main goals they pursue include:

• Faster service
• Avoiding long queues
• Improved customer experiences
• Reduced risks of theft

Thus, SMEs occupy over 60% of the digital solutions market as of 2020, and this percentage is highly likely to grow in the upcoming years.

4. Increasing Importance of Payment Gateways for Media and Entertainment

Other sectors that are largely benefitting from the integration of payment gateways are the entertainment and media industries. The businesses in these spheres are focusing on improving consumer experiences by providing digital payment services at movie theaters, amusement parks, and other related venues.

5. Retail Segment Growth Boosting Payment Gateway Adoption

Retail eCommerce sales worldwide are expected to reach $7.4 trillion by 2025. Such transaction volumes require technical resources to be processed. Thus, the retail industry is sure to propel the payment gateway market growth over the given period and beyond.

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• A 99.997% uptime track record
• Fast integration
• Full technical support
• No iFrames or redirects
• Minimization of fraud risks
• Smart traffic routing
• User-friendly payment platform
• Smoother shopping experience
• Increased conversion rate

The list goes on! Reach out to us already now to start reaping the benefits of a fully brandable payment gateway in no time.