The payment gateway market has grown immensely over the years and especially since the pandemic started when businesses saw a huge shift in consumer behavior.
With more people now discovering the convenience of shopping online, there’s also a strong need for payment processors and high-risk merchant accounts to cater to debit and credit card payments.
So, it’s also expected that the industry’s $20 billion market value will increase to more than $60 billion over the next few years. But what exactly are the factors that affect the payment gateway market outlook?
Local bank integrated payment gateway
Since most banks are now embracing digitalization, there’s also a strong demand for local bank integrated payment gateways where customers can perform financial transactions smoothly since they will be directed to local banks where they can add their financial information.
This makes everything more secure than your typical payment option, which is why this sector is set to have a CAGR of 15% through 2027.
Advanced payment solutions
Since a lot of consumers have shifted to making purchases online, they are also looking for more options when making digital payments. This demand has prompted major market players to develop advanced payment solutions that will help them gain an edge over the competition.
The latest trend is the “Buy Now, Pay Later” payment plan, which enables customers to make fixed installment payments over some time instead of paying for a product in full in one transaction.
Apple is one of the newest market players to offer this service with its Apple Pay Later solution.
Digitalization in media and entertainment
The COVID-19 pandemic has affected the media and entertainment sector the most, especially for physical establishments that have been forced to close due to restrictions.
But now that things are getting back on track, consumers are also seeing more AI and IoT integrations in this sector to give them a better experience.
This has translated into offering digital payment services in amusement parks, theaters, and cinemas, and it’s expected to be adopted by more businesses in the media and entertainment sector in the future.
Digitization in Europe’s BFSI sector
There has been some significant growth in the payment gatewWhat Factors Can Affect Payment Gateway Market Outlook?ay market in Europe. In fact, this growth is expected to put the market at an appreciable valuation of more than $15 billion by 2027 and this is mainly caused by major digitalization efforts in the financial sector in Europe.
Most major banks in the area are now embracing digital solutions to provide a safer and more convenient banking experience to customers. More consumers are also embracing online shopping, which increases the demand for digital payment methods.
So, if you’re a business, these trends are proof that the path towards digitalization in the payment gateway market is clearer than ever.
To keep up with this shift, it’s very important to find the right merchant account provider that can help you offer more payment options to consumers.