Payment Gateway Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Recent Developments

July 2024

Amazon Pay, Adyen, and Mumbai-based BillDesk secured the Reserve Bank of India’s (RBI) cross-border payment aggregator license. In India's large market for foreign remittances and freelancers, the cross-border payment aggregator license creates substantial prospects. These businesses can now let Indian exporters deal in foreign currencies and help international brands sell their goods in India using widely accepted local payment methods.

June 2024

Mastercard, Empik and PayEye launched an in-store biometric payment pilot leveraging iris and facial biometrics. With the help from PayEye fintech, and technology partner Planet Pay, customers will be able to test paying for purchases with their glance in five Empik stores across Poland. This is the first Biometric Checkout Program pilot in Europe.

February 2024

Adyen collaborated with Billie to roll out Buy Now, Pay Later services for European merchants. Billie’s solution integrates smoothly with Adyen and can be activated by retailers in a few clicks. Separately, Stripe teamed up with Airbnb in May 2023 to enable bank account-based payments for Airbnb guests, expanding Stripe’s financial services offerings.

May 2022

MasterCard collaborated with CRED to simplify and secure high-value credit card transactions through the CRED mobile app. With this, cardholders will be able to make high value transactions such as rent payments, or paying maintenance and school fees for any type of education, from any mobile device while benefiting from additional liquidity and enjoying exclusive cashback and credit card rewards.

Key Trends and Drivers

E-commerce Expansion and Digital Payment Adoption

The rapid growth of e-commerce continues to be a significant driver which is increasing the demand of the payment gateway market. Online shopping has become a preferred mode of purchasing goods and services, necessitating secure and efficient payment gateways to facilitate seamless transactions. The proliferation of smartphones and increased internet penetration have further accelerated the adoption of digital payments, especially in emerging markets. India has approximately 944.7 million wireless internet users as of November 2024, up from 941.5 million in October 2024. Additionally, the number of smartphones has grown dramatically, and by FY25, it is predicted to reach 1.1 billion, which is helping the India’s digital sector.

Integration of Advanced Technologies

Payment gateway providers are increasingly integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain to enhance security, efficiency, and user experience, thus boosting the payment gateway market expansion. AI and ML are being utilized for real-time fraud detection and risk management, enabling quicker and more accurate identification of suspicious activities. Mastercard, for instance, has implemented AI-driven systems that analyse up to 160 billion transactions annually, assigning real-time risk scores to detect fraudulent activities within milliseconds. Their Decision Intelligence Pro tool further assesses user behaviour to validate transactions, employing behavioural biometrics to prevent identity theft and first-party fraud.

Regulatory Developments and Compliance

Regulatory frameworks are evolving to address the complexities of the digital payment ecosystem. In the European Union, for example, retailers like Amazon, H&M, Ikea, Aldi, and Marks & Spencer, among others have urged the European Commission to regulate the high and opaque fees charged by major card providers such as Visa and Mastercard, highlighting the need for greater transparency and fairness in the market. Additionally, the European Commission has launched an investigation to assess whether the fees imposed by Visa and Mastercard negatively impact retailers. The Commission distributed questionnaires to retailers and payment service providers, seeking to determine if these fees have harmed businesses between 2016 and 2023.

Growth of Embedded Finance and B2B Payments

Embedded finance, where financial services are integrated into non-financial platforms, is gaining traction, particularly in the B2B sector. Businesses are embedding payment solutions directly into their platforms to streamline transactions and improve customer experience. This trend is transforming the B2B payment landscape, enabling faster and more efficient processes in the payment gateway market. As embedded finance continues to evolve, it is expected to unlock significant economic opportunities. Edgar, Dunn & Company estimates that embedded B2B payments could represent a USD 16 trillion opportunity, highlighting the vast potential for growth in this sector.

Strategic Partnerships and Market Consolidation

The payment gateway market is witnessing increased strategic partnerships and consolidation as companies seek to expand their global footprint and enhance service offerings. For instance, In April 2025, Global Payments announced that it is acquiring Worldpay in a USD 22.7 billion deal in order to strengthen its international presence and transaction capacity. Such mergers and acquisitions are reshaping the competitive landscape, allowing companies to leverage synergies, access new markets, and offer more comprehensive solutions to clients. This trend underscores the dynamic nature of the payment gateway market, and the strategic moves companies are making to stay competitive.

Payment Gateway Industry Segmentation

Global Payment Gateway Market Share

Growth of API-Based Payment Gateways Among Enterprise and Tech-Driven Merchants

As per the payment gateway market analysis, non-hosted, or API-based, payment gateways are experiencing growth driven by larger enterprises and tech-savvy businesses seeking greater control over the payment process and customer experience. These gateways allow transactions to be processed directly on the merchant's website, enabling customized checkout flows and integration with internal systems like CRM and ERP platforms. Companies like Stripe and Adyen offer robust APIs that facilitate such integrations, allowing merchants to tailor the payment process to their specific requirements.

SMEs Drive Digital Payment Adoption Amid Rapid Fintech Growth

As per the payment gateway market report, SMEs are rapidly embracing digital payment gateways to expand their market reach and improve financial operations. The shift towards online transactions has been accelerated by increased internet penetration and the proliferation of smartphones. In India, a recent report by the Small Industries Development Bank of India (SIDBI) highlighted that 90% of Micro, Small, and Medium Enterprises (MSMEs) now accept online payments, indicating a significant move towards digitalization. Furthermore, fintech platforms like Tide have seen substantial growth in SME adoption, with India becoming its largest market by customer count as of May 2025.

Digital Content and Online Retail Drive Payment Gateway Demand

The media and entertainment industry is experiencing a surge in digital content consumption, leading to increased demand for seamless payment solutions. OTTplay Premium partnered with GTPL Hathway, in May 2025, to launch GTPL Genie+, offering access to 29+ OTT platforms in India. This collaboration highlights the rising demand for diverse digital entertainment, with the service providing a seamless viewing experience across devices, driven by AI-driven content recommendations. The partnership aims to “democratize digital entertainment” for millions, reflecting the scale of digital content consumption in India alone.

The retail and e-commerce sector continues to be a significant driver of the payment gateway market, fueled by increasing online shopping activities and the demand for seamless digital payment solutions. With global e-commerce sales projected to grow more than 50% by 2025, retailers are prioritising the integration of efficient payment gateways to handle high transaction volumes.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Payment Gateway Market Regional Analysis

Europe and Asia Pacific Lead the Payment Gateway Transformation

Europe's payment gateway market is witnessing robust growth due to the increasing adoption of digital payments and regulatory initiatives promoting financial integration. Efforts like the European Payments Initiative (EPI) aim to create a unified payment system across the EU, enhancing cross-border transaction efficiency. A tangible outcome of the EPI is the launch of Wero, a European mobile payment system introduced in July 2024. Wero is designed to replace various national payment services, such as Giropay in Germany and Paylib in France, with a cohesive, real-time payment solution.

Asia Pacific is experiencing significant growth in the payment gateway market, fueled by rapid digitalization and the proliferation of mobile commerce. Countries like China, India, and Japan are leading this growth, with increasing internet penetration and smartphone usage driving online transactions. Rakuten Card in Japan aims to nearly double its annual operating profit by expanding into the B2B payments market, which is largely untapped. With over 30 million credit cards issued, Rakuten plans to leverage its relationship with small- and medium-sized enterprises and its partnership with Mizuho Financial Group to reach larger corporates.

Competitive Landscape

Other key players in the market are Visa International Service Association, Worldpay LLC, VeriFone, Inc., Klarna Bank AB, Razorpay Software Private Limited, Payoneer Inc., and others.

Key Features of the Report

• Detailed quantitative analysis of global payment gateway market trends and forecasts.
• Regional and segment-wise insights to identify emerging opportunities and market gaps.
• Evaluation of key drivers, restraints, and ongoing technological developments.
• Competitive landscape covering major global players and their market positioning.
• Regulatory updates and their impact on cross-border digital payments.
• Market dynamics shaped by fintech innovations and embedded finance solutions.

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