The global e-commerce payment gateways market reached nearly USD 20 billion in 2019 and is expected to grow at 24.5% CAGR during the 2021-2027 period. The rising digitalization during the coronavirus worldwide lockdowns, subsequent growing demand for online transactions, and increased innovation are likely to drive robust growth for the market. The worldwide lockdowns have led to the emergence of cashless transactions around the world with options like cash pooling, token systems, and lowering costs of cloud adoptions will further accelerate digitalization around the world. New features like advanced online security systems, alert mechanisms, and global convergence of labour, and capital remain promising horizons of opportunities for players in the global e-commerce payment gateways market. Some key players in the global e-commerce payment gateways market are PayPal Holdings, Inc., Stripe, Authorize.Net, Wepay, Inc., and Skrill Limited.
Expansion of E-commerce Promises New Opportunities for Growth
According to the US Census Bureau Department, the sale of e-commerce sales in the fourth quarter of 2020 account for $206.7 billion, while total sales during 2020 amounted to a whopping $1,477 billion. The 2020 sales marked a robust increase of 32.1% from the fourth quarter of 2019, while the fourth-quarter sales jumped up with a 23.1% increase from the fourth quarter of 2019. Furthermore, in 2020, the e-commerce sales amounted to 14% of total sales, with an increase of 3.0% from the previous year rising from 11.0% in 2019. Moreover, e-commerce is definitely going to take a larger share of a host of retail sales in the near future. In countries like the United States and developed regions like Europe, the sales of retails for large super chains continue to fall to e-commerce. Moreover, major super chains like Walmart, Target, among others are increasingly introducing technologies to merge the gap between traditional retail, and digital retail of the future. Furthermore, the rise of technologies like Artificial Intelligence (AI), and the Internet of Things (IoT) promises to automate payment transactions, and various tasks to bring more efficiency. Furthermore, these technologies also promise to provide better consumer insights to streamline payment gateways and provide additional information to retailers, manufacturers, and other stakeholders. The regulations concerning privacy remain a challenging sphere in the growth of the e-commerce payment gateways market. However, a favourable regulatory environment and rising demand for digitalization of financial services from consumers remain a promising driver for growth in the e-commerce payment gateways market.
BFSI Industry Remains a Promising Driver for Growth During the Forecast Period
Growing digitalization in the BFSI sector promises more opportunities for players in the global e-commerce payment gateways market. The banking and finance sector has quickly adopted digitalization as the digital platforms provide them with open access to key data like consumer credit, a new database of needy consumers, and a worldwide market for financial products. The development is a robust indicator of growth for the banking sector as the distribution of financial products over the internet has led to a significant reduction in costs and provided a major opportunity for growth in the global arena. This has pushed global banking giants to adopt a digital-first strategy worldwide, including the adoption of payment gateway third-party partners like PayPal for global facilitation, and regional partners like Google pay for regional e-commerce. The rising convergence between global and regional e-commerce, and growing avenues for e-commerce like online delivery systems, growing global manufacturing, increased outsourcing, and acquisitions and mergers in the BFSI sector will drive tremendous growth for the global e-commerce payment gateways market.
E-Commerce Impact Likely to Drive Cyclic Growth as Open Models Promise New Avenues
The emergence of e-commerce remains a relatively new phenomenon, and its larger impact on social, and economic conditions is still yet to be fully revealed. However, e-commerce remains a major positive for consumers around the world, which will be key to its future growth. For example, many payment gateways, and other e-commerce giants have adopted largely open models of development, which provide open access to their partners to their databases, resulting in much closer partnerships, and putting consumer at the centre of product development experience. This has resulted in major benefits for consumers today, which can avail loans, saving accounts, credit cards, and stock market investments with a single click. Furthermore, e-commerce gateways also try to combine a range of services including entertainment, conflict resolution, and other complementary services which result in immense loyalty from consumers. A recent Nobel prize winner in Economics, Abhishek Banerjee noted in his study, the microfinance institutions witnessed an 18-fold increase during the 1997-2010 period, reaching the poorest in the world. However, he also noted that the industry also remains susceptible to replacing loan sharks it originally intended to fight, and major concern remains that many of these institutions have become digital, removing accountability in the conventional microfinance systems, leaving the lenders more vulnerable. The lowered accountability to consumers in the global e-commerce payment systems remains a restraint to growth for the sustainable growth of the global e-commerce payment gateways market.
The global e-commerce payment gateways market report is segmented as follows:
- Type Outlook
- Enterprise Size Outlook
- Large Enterprises
- Small & Medium Enterprises
- End-use Outlook
- Media & Entertainment
- Retail & E-commerce
- Travel & Hospitality
- Regional Outlook
- North America
- The U.S.
- The U.K.
- Asia Pacific
- Latin America
- Middle East & Africa
- North America
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