E-Commerce Payment Market Report by Trends, Drivers, and Challenges - 2025

The global e-commerce payment sector was valued at approximately US$ 24.26 billion in 2017 and is projected to expand at a compound annual growth rate (CAGR) of 13.1% from 2018 to 2025, ultimately reaching around US$ 64.69 billion by 2025. The surge in demand for e-commerce payment solutions is driven by various factors, including the availability of multiple online payment methods on e-commerce platforms, such as e-wallets, debit and credit cards, and net banking. Additionally, the growing banking population globally, along with the increasing adoption of smartphones and enhanced internet access, plays a significant role in this growth. Moreover, the rise of cross-border e-commerce presents a substantial opportunity for the e-commerce payment market.

The e-commerce payment landscape is characterized by fragmentation, with numerous payment gateway providers competing in the market. The competitive dynamics are anticipated to evolve in the coming years. E-commerce businesses are evaluating several criteria before finalizing their choice of payment gateway service providers. Key considerations include the simplicity of onboarding, competitive pricing, a variety of payment options, features tailored for both merchants and end-users, robust customer support, and the availability of omnichannel solutions. By integrating these features into a comprehensive gateway solution, companies can capitalize on the rapidly expanding e-commerce market.

When examining the market by type, the credit card segment currently leads; however, it is expected to gradually cede its dominant position to e-wallets during the forecast period. As e-commerce continues to flourish, the payment market is witnessing the emergence of innovative products and services aimed at capturing a larger share of this ever-expanding sector. The introduction of new payment methods enhances customer convenience and security during online transactions. The selection of payment options is crucial for e-commerce businesses, as it directly impacts shopping cart abandonment rates. Payment methods that are overly complex or misaligned with customer banking preferences can significantly hinder sales success.

The overall size of the e-commerce payment market has been determined through a combination of primary and secondary research methodologies. The research process commences with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative insights related to the e-commerce payment landscape. This research also encompasses an overview and forecast of the global e-commerce payment market, segmented by five major regions: North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Additionally, primary interviews with industry stakeholders and experts are conducted to validate the data and analysis. Participants in this process typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the e-commerce payment domain.