The payment gateway sector is projected to expand significantly, reaching a value of US$ 86.9 billion by 2025, up from US$ 30.6 billion in 2016. Among the various types of payment gateways, hosted payment gateways are anticipated to maintain their leading position. Currently, over half of all payment gateway implementations are of the hosted variety. These gateways are favored for their convenience and cost-effectiveness, offering high levels of security while also being customizable and user-friendly. The lower investment requirements and straightforward integration with existing systems have made hosted payment gateways particularly appealing to organizations.
A key trend that is expected to shape the market in the near future is the emergence of payment gateways developed by merchants themselves, aimed at managing high-volume transactions. As consumers worldwide increasingly adopt new technologies to enhance their shopping experiences, this presents a substantial opportunity for merchants to integrate a Business to Consumer (B2C) sales channel and utilize the sales data generated to gain insights into consumer behavior. In light of these objectives, major players in the e-commerce sector are creating their own payment gateway solutions, often in conjunction with eWallet services. This trend is especially prevalent among merchants dealing with large transaction volumes. However, only a limited number of companies possess the resources to establish their own payment gateway networks due to the significant costs associated with development, maintenance, and additional value-added services.
The payment gateway market can be categorized by type into hosted payment gateways, non-hosted payment gateways, direct payment gateways, and platform-based payment gateways. Payment gateway solutions play a vital role in facilitating online purchases and managing transactions. Unlike dedicated payment processors that handle the actual transmission of payments, payment gateways are responsible for authorizing the funds being transferred to the seller, ensuring that this process is secure and convenient for the buyer. There is a growing demand across all types of payment gateways for features that enhance payment convenience while minimizing security risks.
The overall market size has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Additionally, primary interviews are conducted with industry participants and commentators to validate the data and analysis. Participants in this process typically include industry experts 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 who specialize in the payment gateway sector.