Payment Processing Solutions Market Size, Share, and Trends 2024 to 2034

The global payment processing solutions market size was estimated at USD 100 billion in 2022 and is expected to surpass around USD 632.18 billion by 2032 with a remarkable CAGR of 20.3% from 2023 to 2032.

Key Takeaways

• The eWallet segment is growing at a CAGR of 24% from 2023 to 2032. 
• The cloud-based category has contributed a revenue share of over 61% in 2022.
• The BFSI category has captured the largest market share of around 26% in 2022.
• The retail and e-commerce segment is growing at a CAGR of 25% from 2023 to 2032.
• The North America region has generated 47% revenue share in 2022.

Growth Factors

The global Payment Processing Solutions market is driven by the growing internet penetration worldwide coupled with the increase in number of smart phone users. This in turn has led to an increase in the number of online payments, thereby supporting market growth. As of April 2022, the number of internet users globally reached around 5 billion which is about 63% of the total world population.

One of the major factors driving the growth of the global payment processing solutions market is the widespread adoption of mobile payment solutions which has made businesses shift towards alternative modes of payments such as debit cards, credit cards, different types of e-wallets, automated clearing house (ACH), among others. 

Another factor supporting the growth of the global payment processing solutions market is change in consumer behavior patterns and shift towards online mode shopping. Besides, widespread penetration of different e-commerce platforms which provides the users with multiple modes of payments is further expected to support the market growth. Furthermore, benefits such as reduced risks of fraudulent activities and improved customer experience are expected to support market growth.

The global Payment Processing Solutions market is expected to benefit significantly from the sudden outbreak and spread of pandemic COVID-19. The pandemic crisis has made several banking & financial and non-banking & financial to adopt and invest in different digital payment solutions. 

Additionally, the increase in near-field communication or contactless payments worldwide is further expected to create opportunities for the growth of global payment processing solutions. Debit cards are being offered through which either by a tap or via Wi-Fi the payments can be processed. This in turn has increased the demand for contactless cards. In 2021, around 229.87 million contactless cards were shipped to the United States. Additionally, the increasing adoption of NFC-enabled payment modes such as Google Pay, Apple Pay, etc. is creating opportunities for the growth of the market.

The growth of global Payment Processing Solutions market is also being driven by the technological advancements and supportive government activities and initiatives. For instance, machine learning and artificial intelligence are widely used in handling different payment processing solutions in order to detect fraudulent activities. As a result, all of these aforementioned factors are boosting the growth of global Payment Processing Solutions market. 

Payment Processing Solutions Market Scope

Payment Mode Insights

The debit card segment dominated the market in 2022. This can be ascribed to the growing adoption and use of debit cards to carry out daily transactions not only in developed regions such as North America and Europe but also in emerging countries such as India, China, the United Kingdom, Germany, etc. The total number of debit cards in China reached around 8.19 billion in 2020. Additionally, the increasing number of banked consumers worldwide is further expected to support segmental growth. 

The eWallet segment is expected to register the fastest growth during the forecast period, on account of growing digitalization worldwide. Additionally, increasing internet and smartphone users is further expected to support the segmental growth. Also, supportive initiatives by the governments of different countries across the globe to promote digital payments and the use of wallets is expected to bolster segmental growth in the coming years.

End-User Industry Insights

The banking, financial services and insurance (BFSI) end-user industry dominated the Payment Processing Solutions market in 2022. This growth can be attributed to the widespread adoption of advanced payment processing solutions by different banking, financial services and insurance organizations. 

The eCommerce & retail segment is expected to register the fastest growth during the forecast period on account of an increasing number of retail vendors offering personalized solutions for making payments. Additionally, growing number of online buyers and availability of different modes of payment on online channels support segmental growth.

Regional Insights

North America dominated the payment processing solutions market in 2022. This can be attributed to the wider acceptance and adoption of online payments in the region. Additionally, the increase in POS systems and mobile wallet-based payments across shopping centers, coffee shops, grocery stores, among others across Canada is expected to support the regional market growth. 

Asia-Pacific, on the other hand, is expected to develop at the fastest rate during the forecast period. China dominates the Payment Processing Solutions market in Asia-Pacific region. The Asia-Pacific Payment Processing Solutions market’s expansion is being fueled by flourishing consumer goods & retail industry in the region especially in countries like China, India and Australia. Additionally, increasing population of bank account holders across the region is expected to create lucrative opportunities for market growth during the forecast period. This, together with rising internet, communications and telecommunications spending, is likely to drive Asia-Pacific Payment Processing Solutions market forward. The favorable regulatory rules for adoption of digital payment options especially in countries like India is expected to improve demand for payment processing solutions, thereby fueling the overall growth of the market. 

Key Market Developments

• The global Payment Processing Solutions industry is dominated by different banking, financial services, and insurance organizations. The global Payment Processing Solutions market is expected to become more competitive on account of an increase in the number of banking services and financial organizations worldwide.  
• Fiserv launched Clover Online Ordering with Delivery in November 2021. This will provide flexible food delivery services with direct menu management, order and payment processing, and reporting via the Clover platform.  
• Earthwise High Content Card, a sustainable card made up of 98% upcycled plastic was launched by Visa and CPI Card Group in June, 2020.
• In April 2020, Fiserv, Inc. collaborated with Deluxe Corporation and the companies launched merchant solutions for Deluxe small business customers. Deluxe customers can carry out online transactions efficiently through Clover platform.

Segments Covered in the Report

By Payment Mode

• eWallet
• Credit Card
• Debit Card
• Automatic Clearing House
• Others

By Deployment Mode

• On-Premises
• Cloud-Based 

By End-User Industry

• Banking, Financial Services and Insurance (BFSI)
• IT & Telecommunication
• Healthcare
• eCommerce & Retail
• Government & Utilities
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)