Payment Service Provider Market - Global Industry Analysis

Payment Service Provider Market

Payment Service Provider Market by Payment Type (Customer to business, Business to business, and Customer to customer), by Payment Channel (Token system, Digital wallets, Net banking, Direct carrier billing, and Real-time payments), by Software (Payment processing solutions, Payment gateway solutions, PoS solutions, and Payment security & fraud management solutions), by Services (System integration & implementation services, Consulting services, Managed/ outsourced services, and Support & maintenance services), by End Use (Travel & booking, Healthcare, Banking, financial services & insurance (BFSI), Entertainment, Telecommunications , E-commerce, Retail, and Others):Global Industry Perspective, Comprehensive Analysis and Forecast, 2020 – 2028

Published Date: 02-Aug-2021 Category: Technology & Media Report Format : PDF Pages: 150 Report Code: ZMR-5768 Status : Published

The payment service provider market accounted for USD 6.1 Billion in 2019 and is expected to reach USD 20.9 Billion by 2028, growing at a CAGR of 15.2 % from 2021 to 2028.

Payment Service Provider Market

Description

Market Overview

The payment service provider market accounted for USD 6.1 Billion in 2019 and is expected to reach USD 20.9 Billion by 2028, growing at a CAGR of 15.2 % from 2021 to 2028.

Payment service providers also known as merchant service providers or PSPs – are third parties that help organisations or merchants accept payments. Payment service providers enable businesses to accept credit/debit payments by connecting them to the broader financial world. They provide both a merchant account and a payment gateway, ensuring that businesses in an efficient way collect and manage their payments. Payment service providers come along with high security keeping the data of both the company and customer safe and secured. The feature of transaction reporting is also available so that every transaction is reconciled efficiently.

Global Payment Service Provider Market Size

COVID-19 Impact Analysis

The COVID-19 pandemic significantly reduced the number of cash transactions globally. This has become a major opportunity as well as change for the increasing number of online payments. Due to the non- availability of other options customers adapted to the digital and contactless payment methods which in turn derive the payment service provider market. Thus, the pandemic contributed significantly towards the growth of the payment service provider market and results of which are not expected to be short term. As the pandemic continues, more and more customers as well as businesses may continue to contribute towards the market.

Global Payment Service Provider Market

Growth Factors

Several initiatives are being taken by different governments all over the world which may facilitate the growth of the payment service provider market. The increased focus and adoption on the digitization in almost every sector is contributing toward the growth on a significant level. The security and efficient features of the online payment takes over the need to stick to the traditional payment methods. As the pandemic continues, the need for contactless payments may prevail and is also expected to increase. Thus, the growth of the payment service provider market is almost necessary for the world to cope with the pandemic. Also, the rise in the online businesses, for instance the ecommerce sector, is adding towards the growth of the market.

Report Scope:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

Services Segment Analysis Preview

The managed services segment is expected to grow over the coming years. Companies want to simultaneously focus on their core businesses and thus actively look forward to serving through managed services. Managed services help in reducing the infrastructure complexity along with the operational costs, thereby providing a safe and secure infrastructure. Companies providing managed services give a complete package of solutions to its customers, thus enabling excellent customer experience management.

End Use Segment Analysis Preview

The Public Cloud segment held a share of over 43.4 % in 2019. The retail and ecommerce segment is the largest contributor towards the payment service provider market. Both the sectors offer the customers a platform for payment which is time efficient and easy to use. Customers are choosing the online payment option as it is safe and secure and in the view of pandemic, contactless as well. As more online transactions take place, it will directly contribute towards the payment service provider market. After the pandemic began, the healthcare sector is also contributing towards the market significantly as there has been an increase in spending on medicines, and other medical supplies and equipment.

Global Payment Service Provider Market Share

Regional Analysis Preview

The North America region is projected to grow at a CAGR of 26.5 % over the forecast period. North America is the biggest contributor towards the payment service provider market. The region houses a number of small and large organisations which have adopted online payments as a primary payment method and are contributing directly toward the growth of the market. The biggest payment service provider players are based in the US and thus the adoption rate of these services is also very high in the region.

The Asia pacific region is also expected to grow significantly over a period of time. Asia Pacific is the new hub for the technology driven businesses because of its high population and the developing infrastructure. The region also saw a tremendous rise in the adoption of smartphones both in the older as well as younger population. All these factors are going to contribute towards the growth of the payment service provider market in the region.

Key Market Players & Competitive Landscape

Some of the key players in the payment service provider market are ACI Worldwide, Inc., MasterCard International, Inc., Adyen, Global Payments Direct, Inc., CCBill, LLC., Discover Financial Services (Diners Club International Ltd), Stripe, Total System Services, Inc., Amazon Web Services, Inc., PayPal, Inc., among others.

These companies adopt various strategies in order to boost their presence and capitalization. For instance, Paypal has engaged in multiple partnerships and acquisitions to fight off competition from newer and bigger players entering the market. These engagements include partnerships with Mastercard / Visa, high growth digital companies, such as Uber and Instagram, as well as acquisitions of Venmo and GoPay in China.

Global Payment Service Provider Market Regional Analysis

The payment service provider market is segmented as follows: 

 By Payment Type

  • Customer To Business
  •  Business To Business
  • Customer To Customer

By Payment Channel

  • Token System
  • Digital Wallets
  • Net Banking
  • Direct Carrier Billing
  • Real-Time Payments

  By Software

  • Payment Processing Solutions
  •  Payment Gateway Solutions
  •  PoS solutions
  • Payment Security & Fraud Management Solutions

  By Services

  • System Integration & Implementation Services
  •  Consulting Services
  • Managed/Outsourced Services
  • Support & Maintenance Services

   By End Use

  • Travel & booking
  • Healthcare
  • Banking, Financial Services & Insurance (BFSI)
  • Entertainment
  •  Telecommunications
  • E-commerce
  •  Retail
  • Others

   By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

FrequentlyAsked Questions

The payment service provider market was valued at 6.1 USD Billion in 2019.

The payment service provider market is expected to reach USD 20.9 Billion by 2028, growing at a CAGR of 15.2 % between 2021 to 2028.

Some of the key factors driving the payment service provider market growth are initiatives which are being taken by different governments all over the world and are facilitating the growth of the payment service provider market. The increased focus on and adoption of the digitization in almost every sector is contributing towards the growth on a significant level.

The North America region held a substantial share of the market in 2019. North America is the biggest contributor towards the payment service provider market. The region houses a number of small and large organisations which have adopted online payments as a primary payment method and are contributing directly toward the growth of the market.

Some of the major companies operating in the payment service provider market are ACI Worldwide, Inc., MasterCard International, Inc., Adyen, Global Payments Direct, Inc., CCBill, LLC., Discover Financial Services (Diners Club International Ltd), Stripe, Total System Services, Inc., Amazon Web Services, Inc., PayPal, Inc., among others.

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