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Payment Processing Solutions Market Size, Share & COVID-19 Impact Analysis, By Payment Method (Debit Card, Credit Card, e-Wallet, Automated Clearing House (ACH), and Others), By Industry Vertical (Banking, Financial Services and Insurance (BFSI), Manufacturing, IT and Telecommunications, Travel and Hospitality, Retail and Consumer Goods, Healthcare, Transportation and Logistics, and Others), and Regional Forecast, 2020-2027

Last Updated: July 08, 2024 | Format: PDF | Report ID: FBI104467



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The global payment processing solutions market size was valued at USD 48.60 billion in 2019 and is projected to reach USD 116.17 billion by 2027 and further expand to USD 180.84 billion by 2031, exhibiting a CAGR of 11.7%. North America dominated the global market with a share of 35.1% in 2019.

The growth of the market is primarily attributed to the increasing adoption of mobile payment solutions and businesses opting for alternative payment solutions such as e-wallet, cards, and mobile applications, among others. The growing consumer demands for online purchases have driven merchants to decide on options for payment management. Payment processing solutions allow merchants to reduce the risk and improve the customer experience with fraudulent purchases.

Machine learning (ML) and AI systems, which are an anti-fraud tool, are used to handle payment processing solutions. In addition to this, these solutions can effectively be combined with POS systems and thereby, fuel business development. Government initiatives to boost the adoption of these solutions of payment processing have further bolstered the market growth. For instance, in February 2020, the Central Bank of Brazil launched a QR-code technology-based instant payment platform named PIX. With this technological advancement, Brazilian citizens can carry out hassle-free money transfer 24/7.

Demand for Online Payment Processing Solutions to Surge amid the COVID-19

COVID-19 affects the viability of companies in most sectors, owing to factors such as supply deprivation, migrant employees, and new regulatory barriers. Compressed profits due to decreased demand have the biggest effect on payment businesses. One of the most noticeable aspects in which the coronavirus crisis impacted the payments sector is the financial impact, decreased consumer spending, the downturn in foreign trade, and a global recession would eventually decrease the volume of transactions.

In the crisis of the COVID-19 pandemic, several big companies are launching new products in the payment processing industry to appeal to the increasing demand for contactless transactions post-pandemic. For instance, PayU, one of the leading payment gateway companies based in India, launched the Resident Welfare Association (RWA), an initiative to collect and transfer funds online amidst the COVID-19 pandemic. However, in some regions, e-commerce transactions have witnessed a surge in growth as people are ordering groceries and other goods online. The rising concerns regarding the spread of the novel coronavirus have raised the need for retailers and grocery stores to accept credit cards and e-wallets. This is likely to contribute to market growth.


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Increasing Adoption of Value-added Services by Bank & Fintech Companies to Augment Growth

To gain a competitive edge in the market, banks and financial firms are moving away from standard service offering modules. They are adopting customer and business-based models on contextual and customized offerings. These value-added services will enable banks to adapt to a more strategic role and open new income streams for themselves and their clients. For instance, banks are in a greater position to progress their corporate advisory services in liquidity management and cash forecasting by leveraging technology tools such as data analytics, targeted marketing, among others.

By leveraging data analytics, banks can provide an efficient cash forecasting model based on previous transactions and upgrade their payment technology. By leveraging Artificial Intelligence (AI), banks can smoothen automated decision-making processes and can provide treasury as a service model to small and large enterprises. Furthermore, the adoption of advanced technologies has enabled banks and Fintech firms to automate important accounting operations and provide end-to-end services and manage liquidity operations.


Rapid Rise in Real-time Online Payments to Boost Market Growth

With business and technological advancements, real-time payment solutions are evolving with strong footprints in the banking industry. Banks and financial firms are making initiatives to support digital and new modes of payments such as wallets, e-channels, third-party API providers, among others. For instance, in October 2017, a group of 13 financial institutions and banks collaborated on a new platform run by New Payments Platform Australia (NPP Australia). With this initiative, real-time money transfer is made easier.

The rising ubiquity of smart devices and the thriving retail industry in the markets is pushing real-time payments to take place rapidly. Increasingly, demanding customers will turn to smartphones to pay retailers, billers, coworkers, and others. While the private industry has traditionally encouraged the promotion of digital trade, governments seem to be lagging. However, improved use of real-time payments could help them increase tax collection and boost fraud prevention. Thus, consumer behavior and high-speed data networks are top factors fueling the adoption of real-time payments, contributing to the growth of this market.

Significant E-commerce Growth Worldwide to Drive Product Adoption

The retail market has changed from conventional business models with the advent of new payment technology, expanded mobile purchases, and the growing use of online card payments. Merchants or retailers reorient themselves to the rapidly evolving competitive landscape through their sales strategies. The dealers are also focused on offering creative mobile payment options, risk management, and customer service, both online and offline.

Moreover, increased competitive demands influence crucial investment choices for technology. Increasingly, internet retailers perceive technology as a significant distinction from the market. Large dealers invest in technical development programs to safer, simpler, and easier to perform online purchases. In addition to this, access to the payment market for non-bank players has allowed online traders to provide their clients with multi-channel payment options.  


Data Security and Identity Theft Concerns to Impede Market Growth

While stringent measures like symmetric encryption, and enhanced cloud security, among others, are in place to ensure safe and stable online payments, however, it remains vulnerable to hacking. For instance, fraudsters use phishing attacks to get unwitting users to have log-in details on their e-wallets and to access personal and financial information from victims. Failure to authenticate would also impact payment processes online. Anyone can use another person's cards and e-wallets and get away without being caught with superior identity authentication steps such as biometrics and face recognition. Any citizens may be hesitant to use e-payment services with these security issues.

The e-payment systems are increasingly required to avoid unauthorized access to confidential financial details contained in the database systems of a company. Companies with in-house e-payment services have extra costs to procure, install, and retain new payment security solutions.


By Payment Method Analysis

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Debit Card Segment to Register High Growth

Based on the payment method, the market is segmented into Debit Card, Credit Card, e-Wallet, Automated Clearing House (ACH), and others (Bank Transfer, Prepaid Debit Card, Cheque, Etc).

The debit card segment dominated the market in 2019. The growth of this segment is mainly attributed to the increased use of cards to carry out daily transactions in developed regions such as North America and Europe. The debit card infrastructure is well established in some regions, where the percentage of banked consumers is high. Additionally, the number of debit cardholders has increased recently in countries such as India, China, and Germany. For instance, according to the Reserve Bank of India, in June 2018, the number of debit cardholders increased to 944.3 million in India.

The e-wallet segment is expected to experience the fastest growth during the forecast period. The adoption of e-wallets has evolved with the emergence of digital payments. According to the World Payments Report published by Capgemini in 2018, non-cash transactions carried out with e-wallets were estimated to be 41.8 billion globally. Owing to the rise in mobile payments, smartphone adoption, and the transition in customer behavior, the prevalence of this payment type has intensified.

Governments are taking initiatives for the adoption of online payment solutions globally. Therefore, the adoption of bank transfers and prepaid debit cards is expected to grow during the forecast period.

By Industry Vertical Analysis

BFSI Segment Dominated the Market in 2019

Based on industry vertical, the market is segmented into Banking, Financial Services and Insurance (BFSI), Manufacturing, IT and Telecommunications, Travel and Hospitality, Retail and Consumer Goods, Healthcare, Transportation and Logistics, and others.

The BFSI segment dominated the global payment processing solutions market share in 2019. The growth of this segment is mainly attributed to the increased adoption of advanced payment processing solutions by banks and Fintech firms. As the internet grows rapidly, several projects have been initiated by banks to create a stable and cost-effective payment mechanism to enable increasing network trade activities. While large-scale electronic paging systems have been running for some time, rapidly expanding foreign exchange and securities trading volumes are becoming much more different from the specifications for the low-value electronic payment system.

The retail segment is expected to grow at the fastest CAGR during the forecast period. Vendors focus on offering personalized solutions for retail payments that allow dealers, at the point of sale, to offer versatile processing methods. This helps retailers boost customer experience by safe, easy, and reliable check-outs. In addition to this, merchants are widely implementing advanced payment processing solutions such that payment transfers are fully available.


North America Payment Processing Solutions Market Size, 209 (USD Billion)

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The online payments industry has experienced significant growth in North America due to a combination of the expansion of interest margins and the rapid growth of online transactions. A stronger interstate economic structure has allowed a slight but beneficial rise in net interest margins on current account balance every year. The rate of growth in transactions of electronic payments has been almost doubling the GDP growth rate, fueled by the e-commerce boom, and the continuing transition from cash and checks.

The higher acceptance of digital payments in the region will further lead to the growth of the regional market. In addition to this, mobile wallets are projected to expand in the region to drive the growth of the regional economy. In comparison, the most common method of cash transfers between the consumers in both the point of sale (POS) and online methods are credit cards in the countries of North America. The region stood at USD 17.06 billion in 2019 and is projected to maintain its dominance during the forecast period.

The market is likely to showcase moderate growth in Europe. This growth is mainly attributed to the presence of major players in the region and the increasing adoption of online channels by retail customers. The continued shift from cash to advanced payment processing solutions is owing to the rising number of card transactions, coupled with online payment solutions such as real-time payments, and mobile wallets, among others. Furthermore, government regulations such as the Second Payment Services Directive (PSD2) and open banking have further fueled the demand for advanced payment solutions in the region.

Asia Pacific is expected to experience the fastest growth during the forecast period. The rising retail and consumer goods industry in countries such as China, India, and Australia have contributed to market growth. According to the World Bank, the total percentage of bank account holders in the region reached 73% in 2017 from 13% in 2011. Strong growth in the adoption of advanced technologies for transactional purposes in the region is likely to favor the market growth. Additionally, regional e-commerce industry growth, along with supportive government initiatives, have further elevated the demand for these solutions in the region during the forecast period.

The payments industry is currently fragmented in the Middle East & Africa. The majority of the population in some nations, such as Egypt, is unbanked and cash is still the ruler. Cash dependence still occurs in areas such as Turkey and Saudi Arabia. Still, there is a high demand for digital payment solutions due to the influence of card payments and the rising adoption of smartphones. Government and Fintech firms in the region are focusing on implementing supportive actions to boost digital payments and decrease the number of cash transactions.

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To create an atmosphere where banks, regulators, and financial service providers will work together to build, test, and support emerging digital payments, organizations in Latin America have implemented digital sand-box initiatives. Around the same time, smartphone and app payments are gaining traction in several countries. With the growing acceptance of digital payment solutions, the increasing number of organizations, and customers planning to adopt them for regular cashless transactions, the demand is likely to surge in the forthcoming years. Therefore, it will be critical that the region has the facilities in place to make these payments fast and reliable. Moreover, it is necessary to provide access to the provider that will allow participating banks to deliver new real-time payment options in a quicker time and lower the risk that will favor market growth in the region.


Key Market Players to Enhance Offerings and Adopt Partnership Strategies to Meet Business Needs

Market-leading players such as PayPal Holdings, Inc., Fiserv Inc., VISA Inc., and Stripe, among others are launching innovative offerings owing to the promising developments in advanced technologies. On the other hand, other key players are entering into strategic partnerships with other competitors to strengthen their market position and achieve strong brand advertising. For instance,

  • September 2020 – PayMyTuition, one of the leading technology-based payment processing solution providers, launched Payment Wheel, an innovative solution for Canadian educational institutions. This will help tuition and institutions carry out financial activities and payments in an efficient manner.

  • April 2020 – Fiserv Inc., a leading financial solution provider, collaborated with Deluxe Corporation, a leading technology company, to launch merchant solutions for Deluxe small business customers. With Clover, a point-of-sale platform, Deluxe customers can carry out online transactions efficiently.


  • PayPal Holdings, Inc. (California, United States)

  • Fiserv Inc. (Wisconsin, United States)

  • GLOBAL PAYMENTS INC. (Georgia, United States)

  • Mastercard Incorporated (New York, United States)

  • Square, Inc. (California, United States)

  • VISA Inc. (California, United States)

  • PayMyTuition (Toronto, Canada)

  • Rapyd Financial Network Ltd. (London, United Kingdom)

  • Stripe (California, United States)

  • PAYU (Hoofddorp, Netherlands)

  • CCBill, LLC. (Malta, Europe)

  • AUTHORIZE.NET (Utah, United States)

  • Jack Henry & Associates, Inc. (Missouri, United States)

  • Paysafe Group Limited (London, United Kingdom)

  • Alipay (Shanghai, China)

  • BlueSnap Inc. (Massachusetts, United States)

  • Worldline (Bezons, France)

  • Fattmerchant Inc. (Orlando, Florida)

  • SignaPay (Irving, Texas)

  • Dwolla (Iowa, United States)


  • June 2023: Visa's acquisition of Pismo aimed to deliver essential banking and issuer processing functionalities for debit, prepaid, credit, and commercial cards to clients through cloud-native APIs. Additionally, Visa sought to offer support and connectivity for emerging payment networks, such as Pix in Brazil, for financial institutions.

  • May 2023: ACI Worldwide unveiled a strategic partnership with Red Hat OpenShift to empower financial institutions and payment service providers with the capability to leverage ACI solutions within the Red Hat OpenShift platform.


An Infographic Representation of Payment Processing Solutions Market

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The global payment processing solutions market report offers qualitative and quantitative insights on the product and a detailed analysis of market size & growth rate for all possible segments in the market.  Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape.

Key insights provided in the report are the adoption trends of payment processing solutions by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, and business strategies of leading market players, key industry trends, macro, and micro-economic indicators.

Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD billion)


  Payment Method; Industry Vertical; and Geography

By Payment Method

  • Debit Card

  • Credit Card

  • e-Wallet

  • Automated Clearing House (ACH)

  • Others (Bank Transfer, Prepaid Debit Card, Cheque, Etc)

By Industry Vertical

  • Banking, Financial Services and Insurance (BFSI)

  • Manufacturing

  • IT and Telecommunications

  • Travel and Hospitality

  • Retail and Consumer Goods

  • Healthcare

  • Transportation and Logistics

  • Others (Government, Media and Entertainment, Education, Etc.)

By Geography

  • North America

    • United States

      • By Payment Method

    • Canada

      • By Payment Method

    • Mexico

      • By Payment Method

    • Payment Method

    • Industry Vertical

    • By Country

  • South America

    • Brazil

      • By Payment Method

    • Argentina

      • By Payment Method

    • Rest of South America

    • Payment Method

    • Industry Vertical

    • By Country

  • Europe

    • United Kingdom

      • By Payment Method

    • Germany

      • By Payment Method

    • France

      • By Payment Method

    • Italy

      • By Payment Method

    • Spain

      • By Payment Method

    • Russia

      • By Payment Method

    • Benelux

      • By Payment Method

    • Nordics

      • By Payment Method

    • Rest of Europe

    • Payment Method

    • Industry Vertical

    • By Country

  • The Middle East & Africa

    • Turkey

      • By Payment Method

    • Israel

      • By Payment Method

    • GCC

      • By Payment Method

    • North Africa

      • By Payment Method

    • South Africa

      • By Payment Method

    • Rest of the Middle East & Africa

    • Payment Method

    • Industry Vertical

    • By Country

  • Asia Pacific

    • China

      • By Payment Method

    • Japan

      • By Payment Method

    • India

      • By Payment Method

    • South Korea

      • By Payment Method

    • ASEAN

      • By Payment Method

    • Oceania

      • By Payment Method

    • Rest of Asia Pacific

    • Payment Method

    • Industry Vertical

    • By Country

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 48.60 billion in 2019 and is projected to reach USD 116.17 billion by 2027.

Growing at a CAGR of 11.7%, the market will exhibit steady growth during the forecast period (2020-2027).

The debit card segment is expected to be the leading segment in this market during the forecast period.

A rapid rise in real-time online payments is one of the major factors driving the growth of the market.

PayPal Holdings, Inc., Fiserv Inc., GLOBAL PAYMENTS INC., Mastercard Incorporated, Square, Inc., and VISA Inc. are some of the major players in the market.

North America dominated the market share in 2019.

The global e-commerce growth is expected to drive the market growth.

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