A recent publication by Future Market Insights (FMI) featured the latest reports on the online payment gateway platform. According to the study titled “Online Payment Gateway Market: Global Industry Analysis (2013-2017) and Opportunity Assessment (2018-2028),” the increase in the number of third-party payment processes could lead to the expansion of the worldwide payment gateway market.
Websites have created a perfect opportunity for merchants to generate revenue. And as we speak, it is evident that mobile usage is on the rise. Retailers are dropping traditional forms of taking payments for more advanced methods.
There are several modes of transactions that use payment gateways e.g., direct debits, real-time bank transfers, and more. Transactions involving payment gateways include debit and credit cards, charge cards and prepaid cards. Credit cards and debit cards remain the most commonly used forms.
A credit cardholder uses credit limits set by the issuer of the card, e.g. a bank, store, or vendor. Balances incurred on credit cards are usually repaid on a “rolling” basis, whereby, a portion of the balance is to be paid on a 30-day plan until the cardholder pays off the full balance.
Debit cards, on the other hand, are bank cards used to complete cash transactions. In debit card transactions, the total amount payable after a purchase is deducted from the balance in the card owner’s account. Therefore, if the funds in the account are inadequate, the transaction becomes unsuccessful. It is what most people in the US refer to as an asset card or payment card.
Market value to reach $ 191.7 Billion
FMI’s study found that the major corporations controlling the marketplace have been looking to make the most of the niches available in the international market. Top companies counting PayPal Holdings Inc., Stripe, Amazon.com Inc., Avenues India Pvt. Ltd., and CCBill are among those working to serve the global platform. They plan to work with payment processors to ease the completion of payments for merchants and customers— it is important to understand payment gateway vs. payment processor. The researchers predicted that the global online payment gateway marketplace would record a CAGR of 10.3% between 2018 and 2028. More detailed statistics estimate that the overall market’s value will reach a whopping US$ 191.7 Bn by the end of the close of 2028 increasing from US$ 65.5 Bn in 2017.
Increasing Third Party Payments to drive Global Market Growth
Up-and-coming markets serve an entire 85% of the worldwide market, and almost 90 percent of under-30s operate within these 3rd party markets. They are becoming a favorite spot for online transactions. Emerging markets are attracting more people thereby slowing down the black economy and fostering economic growth.
By allowing non-bank players to participate in the market, the supervisory body is bypassing the obligation for banking institutions to be able to provide all financial services. So far, this has been and will continue to be a powerful driver for the online payment gateway market.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.