The global payment gateways market is projected to grow by USD 11.23 billion between 2023 and 2028, registering a CAGR of 13.42%, fueled by rising demand for contactless and secure digital transactions. The evolving payment infrastructure presents new opportunities for digital transformation, customer retention, and competitive scalability—especially in sectors spanning e-commerce, BFSI, IT, and manufacturing.
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The widespread transition toward a cashless economy, accelerated by the coronavirus pandemic, has driven record-high adoption of contactless payment technologies. This includes NFC-based systems, digital wallets, and cardless ATMs, particularly in North America, where consumer expectations around speed, convenience, and hygiene are reshaping payment norms.
Payment gateways have become essential infrastructure for micro merchants, SMBs, and large enterprises to process bulk and onsite payments with speed and reliability. Companies leveraging mobile apps, hosted payment pages, and internet banking integrations are benefiting from increased consumer loyalty and transaction efficiency.
The emergence of NFC (Near Field Communication) technology has revolutionized payment acceptance. Devices ranging from smartphones to vending machines are now integrated with digital payment capabilities. This trend is particularly relevant for sectors that rely on high-frequency, high-volume transactions—such as manufacturing supply chains, IT vendors, and BFSI service providers.
Merchant acquiring platforms like Worldline, Paystack, and PhonePe offer NFC-compatible solutions that cater to real-time authorization, fraud detection, and end-to-end encryption. These tools empower U.S. businesses to support remote, mobile, and global transactions securely.
Despite the market’s rapid expansion, costs associated with PoS systems pose significant barriers for small and micro enterprises. The setup, monthly subscriptions, transaction fees, and cancellation costs of legacy systems are unsustainable for many.
Cloud-based gateways offer relief, with annual operating costs for small businesses falling under USD 500, but broader adoption still requires investment in digital infrastructure and financial literacy.
Another challenge is cybersecurity—particularly in e-commerce and crypto wallet transactions, which remain highly vulnerable to phishing, denial-of-service attacks, and data breaches.
Large Enterprises
The large enterprise segment—valued at USD 2.78 billion in 2018—is projected to show substantial growth during the forecast period. These businesses are integrating gateways for cross-border banking, digital wallets, and mobile-based apps to support high-volume transactions across global markets.
Sectors such as BFSI, IT, and manufacturing are leading adopters. Contactless payments in modern vending machines, smart devices, and online platforms are boosting both transaction speed and customer retention.
Micro and Small Enterprises
This segment benefits from cost-effective, cloud-based gateway solutions. B2B suppliers, local retailers, and service providers are transitioning to digital for faster payment processing and reduced cash dependency.
Mid-sized Enterprises
Mid-sized firms leverage hosted solutions for bulk payments, often tied to inventory procurement, vendor contracts, and recurring services.
Hosted Payment Gateways
These remain a top choice for businesses prioritizing ease of integration and security, particularly in e-commerce and digital service sectors.
Non-hosted Payment Gateways
Best suited for enterprises seeking full control of their checkout experiences, often requiring in-house development capabilities.
United States
North America continues to lead in contactless payment adoption, with the U.S. at the forefront. NFC-based systems, cardless ATMs, and mobile wallets are deeply embedded in consumer behavior. B2B platforms are integrating payment gateways with mobile apps, digital invoicing, and embedded finance systems to streamline transactions.
China, Japan
APAC is expected to contribute 30% to global market growth. In India and China, the fusion of UPI systems, smartphones, and PoS integration is accelerating payment gateway adoption. Japan is also playing a central role in driving regional innovation, especially in contactless consumer-tech ecosystems.
Germany, UK
Digital wallets and online banking dominate in Germany and the UK, where hosted gateways provide seamless cross-border and multicurrency support.
A rising digital economy and improved infrastructure are increasing gateway penetration, especially among e-commerce and financial service providers.
As digital ecosystems mature, adoption of mobile-based payments and cloud-hosted solutions is expanding rapidly.
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The Payment Gateways Market is witnessing substantial growth due to the rising adoption of contactless payments, tokenization security, and blockchain technology, all of which enhance transaction safety and transparency. Key technologies like biometric authentication, NFC technology, and advanced payment APIs are enabling seamless and secure digital transactions. The rise of open banking is also fostering innovation in secure transactions, while fraud protection, multi-currency support, and instant payments are becoming standard expectations. Moreover, capabilities such as transaction monitoring, data encryption, and customer authentication are increasingly integrated into e-commerce platforms, mobile apps, and point-of-sale systems, reinforcing the overall digital payments infrastructure and supporting the rapid growth of digital commerce.
The competitive landscape is driven by strategic partnerships, M&A activity, and regional expansion initiatives. Leading players in the market 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.
Visa Inc.
These organizations provide customizable gateway solutions catering to enterprise needs such as real-time processing, encryption, multi-currency support, and fraud prevention.
On the analytical front, payment processing efficiency, along with demand for real-time payments, digital receipts, and QR code payments, is driving vendors to invest in robust cybersecurity measures and comprehensive payment analytics. Optimizing the user interface and enhancing checkout optimization are now essential for improving conversion rates. Additionally, services like subscription payments, cross-border payments, and seamless payment integration are expanding the functionality of gateways. To boost engagement, companies are incorporating loyalty programs, digital invoicing, and advanced transaction security within their platforms. Innovations such as payment solutions, virtual cards, smart contracts, embedded finance, and support for mobile payments and cardless transactions are also shaping the future landscape. Technologies like payment tokenization, data security, and API integration continue to support scalability, compliance, and user trust in payment gateway ecosystems.
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