Payment Gateways Market Size to grow by USD 11231.9 million between 2024-2028

Technavio, a leading provider of market research reports, has released its latest study on Payment Gateways Market. This report offers a comprehensive analysis of the current market trends, emerging opportunities, and key challenges. Near Field Communication (NFC) is a cutting-edge technology enabling data exchange between compatible devices within proximity, typically a few centimeters. NFC functionality requires both devices to be equipped with NFC chips. This technology supports two communication modes: one-way and two-way. In one-way communication, a reader or powered device, such as a smartphone, credit card reader, or commuter card terminal, initiates the transfer of data to the NFC chip. This is commonly used for contactless payments, where the user taps their commuter card on the terminal to deduct the transaction amount. In two-way communication, both devices can read and write to each other, facilitating data transfer between two NFC-enabled devices, such as two Android smartphones, for sharing contacts, links, and photos.

Key Highlights

Growth Projections

The global payment gateways market  size is estimated to grow by USD 11231.9 mn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 13.42% during the forecast period. High adoption of contactless payment solutions is driving market growth, with a trend towards emergence of nfc-based payment technology  However, high operating and maintenance costs of pos terminals  poses a challenge.Key market players include Adyen NV, Amazon.com Inc., B2Broker Ltd., BitPay Inc., Block Inc., CCBill LLC, Fidelity National Information Services Inc., Global Payments Inc., Infibeam Avenues Ltd., Ingenico Group SA, JPMorgan Chase and Co., Mastercard Inc., MIH PayU BV, One97 Communications Ltd., Payoneer Global Inc., PayPal Holdings Inc., Razorpay Software Pvt. Ltd., Stripe Inc., VeriFone Inc., and Visa Inc..

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Major Findings

• The payment gateways market is witnessing a significant surge in the adoption of contactless payment solutions. With the increasing preference for touchless transactions due to the ongoing pandemic, contactless payment methods such as NFC, RFID, and QR codes are gaining popularity. These technologies enable faster and more convenient transactions, enhancing the user experience and promoting digital payments. Additionally, the integration of advanced security features ensures secure and reliable transactions, making contactless payment solutions an attractive option for both merchants and consumers.


• The payment gateways market is experiencing significant growth due in part to the increasing demand for Point of Sale (PoS) terminals from end-users. These terminals enable seamless transactions in various industries, including retail, hospitality, and healthcare, fostering a cashless economy. The convenience and efficiency offered by PoS systems have made them an essential tool for businesses, driving the market's expansion. Additionally, the integration of advanced features such as contactless payments, mobile payments, and NFC technology further enhances the market's potential for robust growth.


• The Point of Sale (PoS) terminals used in payment gateways come with significant operating and maintenance costs. These expenses can include hardware upgrades, software updates, transaction fees, and ongoing support. Businesses must carefully consider these costs when selecting a payment gateway solution to ensure they are making a financially sound decision. The high costs associated with PoS terminals can impact a company's profitability and should be factored into their budget.


• Payment gateways play a crucial role in securing consumer data during online transactions. Ensuring privacy and security is a top priority for both merchants and consumers. Sensitive information, such as credit card numbers and personal details, must be protected from unauthorized access. Advanced encryption technologies, tokenization, and fraud detection systems are employed by payment gateways to safeguard data. Compliance with industry standards, such as PCI DSS, adds an extra layer of security. By prioritizing privacy and security, payment gateways instill confidence in consumers and facilitate seamless online transactions.

Market Research Overview

The global IT software market encompasses businesses specializing in the creation and distribution of application and systems software, as well as database management solutions. This market segment includes organizations engaged in application development and management, cloud computing, data centers, hosting, IT management, mobility, networking, security, and storage software production. Excluding home entertainment software developers, the market size is determined by Technavio based on the consolidated revenue generated by these companies offering various types of systems software, including cloud-based solutions.

The Payment Gateways Market is experiencing significant growth, fueled by the High adoption of contactless payment solutions. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

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Regional Insights

As a seasoned business professional, I'm here to provide insights into the Payment Gateways Market. This sector is experiencing significant growth due to the increasing demand for secure and efficient online transactions. Key players include Stripe, PayPal, and Square, offering features such as fraud protection, multiple payment options, and seamless integration with merchant platforms. Businesses benefit from increased sales and customer satisfaction, while consumers enjoy a streamlined checkout experience. The market is expected to continue expanding, driven by advancements in technology and the global shift towards digital commerce.

Research Analysis Overview

Payment gateways have become an essential component of the e-commerce sector, enabling businesses to process online transactions securely. With record-breaking sales during the coronavirus outbreak, the importance of contactless payments and digital infrastructure has reached new heights. Bulk transactions have become commonplace, with consumers increasingly relying on online services to minimize business interruptions and financial losses. Small merchants and micro merchants are also embracing digital payments, making payment gateways a cost-effective solution for businesses of all sizes. Worldline, a leading payment services provider, reports a surge in digital transactions as consumers prioritize cashless economy and online transactions. However, this shift towards digital payments comes with challenges. Cyberattacks and sensitive data breaches pose significant risks, making security a top priority. Bank apps and cards are increasingly being used for contactless payments, adding another layer of complexity to the payment ecosystem. Merchant acquiring, the process of accepting payments from customers, is a crucial aspect of payment gateways. Payment gateways facilitate this process, ensuring secure and efficient transactions. As internet penetration continues to grow, the importance of payment gateways in the digital economy will only increase. Money, the universal currency, is now being exchanged in the digital realm, making payment gateways an indispensable part of our lives.

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