Payment as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Payments as a Service Providers and the Market is Segmented by Type of Services (Merchant Financing, Regulatory Compliance, Security and Fraud Protection, Payment Applications and Gateways), End-user Industry (Retail and E-commerce, BFSI, Hospitality, Media and Entertainment, Healthcare), and Geography. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

Payment as a Service (PAAS) Market Size

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Payment as a Service Market Summary
Study Period 2021 - 2029
Market Size (2024) USD 10.98 Billion
Market Size (2029) USD 44.44 Billion
CAGR (2024 - 2029) 32.26 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Payment as a Service Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Payment as a Service (PAAS) Market Analysis

The Payment as a Service Market size is estimated at USD 10.98 billion in 2024, and is expected to reach USD 44.44 billion by 2029, growing at a CAGR of 32.26% during the forecast period (2024-2029).

In the current scenario, the increasing smartphone penetration is proliferating the growth of the sale of goods and services extensively through mobile apps to assist customers by providing an easy and convenient shopping experience. The rise in demand for easy and convenient purchases of goods and services resulted in a radical shift toward digital and cashless payments. The increase in e-commerce business further boosts the global payment service provider market.

  • The business is anticipated to increase due to efforts being made in numerous nations to promote digital and online transactions. The expansion of the PaaS market is also expected to be aided by the advent of payment networks like Mastercard, Visa, and Rupay on a global scale for the processing of smooth payments for clients.
  • The increased demand for smartphone penetration and the incorporation of online services is experiencing continuous growth. It is expected to maintain its dominance in the market with an increase in emphasis on smartphone usage and massive internet penetration across the world. In addition, customers are using online payment channels more frequently as banks and financial institutions provide real-time payment services. Therefore, demand for online payments is experiencing a continuous rise in the market.
  • The payment industry has experienced a significant transformation, and the old methods are replaced with new modules with a single click. Moreover, payment as a service (PaaS) is not only changing the scene for retailers. Banks are now realizing that the rise in PaaS use is an opportunity to give their clients a reliable choice. Thus, the increasing dependence on e-commerce, especially in retail, drives the payment as a service market.
  • The absence of a global standard for cross-border transactions could restrain the market. Due to the lack of a worldwide payment system that is simple to use, international standards, and differing government rules in different countries, banks and businesses may be negatively impacted. This frequently necessitates manual intervention to gather and correct data.
  • The COVID-19 pandemic has significantly impacted the payment as a service industry, owing to the increased usage and adoption of online and digitalized payment methods among consumers globally. Additionally, payment as a service is experiencing massive growth as consumers become familiar with the payment technology in the market. However, post-pandemic, there was a significant rise in the adoption of digital payments, reducing the trend of carrying and paying through cash which, in turn, has become one of the primary growth factors for the payment as a service market.

Payment as a Service (PAAS) Market Trends

This section covers the major market trends shaping the Payment as a Service Market according to our research experts:

Retail Sector Expected to be a Significant Contributor

  • Retailers are rapidly adopting digital payment technology to bring more convenient experiences to their customers, owing to the massive growth in the e-commerce industry. According to the Mobile Payments Conference, 2.5 billion people worldwide prefer online shopping. By 2025, the number will grow to 4 billion digital buyers. According to the British Retail Consortium (BRC), debit cards account for 42.6% of all transactions, whereas cash is 42.3%. According to UK Finance, 77% of all UK retail spending was made by cards.
  • Merchants are increasingly implementing cutting-edge technologies to boost their presence and visibility in the market. For instance, the biggest retailer in the world, Walmart, recently said that PayPal Cash Mastercard would be accepted for in-store purchases. The merchant wants to incorporate the payment provider's service so that customers can use the PayPal mobile app to withdraw cash and top up their accounts at Walmart locations.
  • In addition, many companies that offer payment services are growing their operations to boost their market presence. For instance, the world's most extensive online retailer's online payment system, Amazon Pay, rolled out "buy now pay later" capabilities to local retailers. Amazon has already introduced the payments service in the department store chain Shoppers Stop, in which the online retailer owns a 5% stake and sets up the necessary infrastructure at the grocery chain More.
  • Another significant benefit of digital payment is the ability to collect customer data for marketing purposes. This enables retailers to build customer relationships after their visit or purchase and further work toward customer acquisition and retention.
Payment as a Service Market - Share of selected payment methods of total transaction volume in 2021, with a forecast for 2025, in Percentage

Asia-Pacific to be the Fastest Growing Region

  • The Asia-Pacific region is expected to depict substantial growth owing to the increased demand for integrated payment solutions and advancements in payment technologies in the region. Furthermore, the rise in the penetration of smartphones and internet penetration in the region is propelling the market.
  • Countries in the region, such as Japan, China, Australia, South Korea, and New Zealand, contribute significantly toward the growth. For instance, the Asian Payments Network (APN) is a group of 11 Asian countries that include China, Japan, Singapore, Malaysia, Thailand, South Korea, New Zealand, Vietnam, Indonesia, Philippines, and Australia to promote cross-border banking transactions in the region.
  • Many small retailers earlier relied more on cash but rapidly deployed digital payments to remain competitive in the market. For instance, as the Indian government launched a demonetization program, consumers were forced to use electronic payments.
  • Various payment service providers also invest in the Asia-Pacific region to expand their businesses by tapping the growing market. For instance, the firm Infibeam intends to expand its global presence in the digital payments market by aggressively promoting its flagship brand CCAvenue, a provider of digital payment gateway infrastructure in India with an annual run-rate of USD 47 billion.
Payment as a Service Market - Growth Rate by Region

Payment as a Service (PAAS) Industry Overview

The payment as a service market is highly competitive and fragmented, owing to the presence of many payment service providers. The market players are consistently focusing on developing innovative products. The vendors increasingly focus on mergers and acquisitions to increase market share and gain market traction.

  • In November 2022, Adyen, the global financial technology platform of choice for leading businesses, announced that Instacart, the leading grocery technology company in North America, has selected the company as an additional payments processing partner.
  • In October 2022, Ingenico, the technological partner in payments acceptance, and Live Payments, one of Australia's leading payment service providers, entered a long-term strategic partnership to equip retailers and taxis with seamless, convenient payment and commerce solutions. Ingenico will roll out its AXIUM range of Android Smart POS for Live Payments across Australia.

Payment as a Service (PAAS) Market Leaders

  1. FIS

  2. Thales Group

  3. Ingenico Group

  4. Agilysys, Inc.

  5. Paysafe Holdings UK Limited.

*Disclaimer: Major Players sorted in no particular order

Payment as a Service Market Concentration
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Payment as a Service (PAAS) Market News

  • November 2022 - Nium, the global platform for Modern Money Movement, launched Nium Airline Payments (NAP), a closed-loop payments solution powered by Universal Air Travel Plan (UATP) to lower payment costs, guarantee acceptance and offer ultra-flexible incentives.
  • October 2022 - Deutsche Bank and Fiserv, a global leader in payments and financial services technology, have launched Vert, a complete payment acceptance and banking services provider to small and medium-sized enterprises (SMEs). Vert is the only German provider to combine payment acceptance and processing and traditional banking solutions, meeting market demand for an integrated offering and streamlining access to innovative products for merchants of all sizes.

Payment as a Service (PAAS) Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Increased Demand for Smartphone Penetration and Incorporation of Online Services

      2. 4.2.2 Increase Dependence on E-Commerce Platform

    3. 4.3 Market Restraints

      1. 4.3.1 Absence of Global Standards for Payments

    4. 4.4 Industry Value Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19 on the Market


    1. 5.1 By Types of Services

      1. 5.1.1 Merchant Financing

      2. 5.1.2 Regulatory Compliance

      3. 5.1.3 Security and Fraud Protection

      4. 5.1.4 Payment Applications and Gateways

      5. 5.1.5 Other Services

    2. 5.2 By End-user Industry

      1. 5.2.1 Retail and E-commerce

      2. 5.2.2 BFSI

      3. 5.2.3 Hospitality

      4. 5.2.4 Media and Entertainment

      5. 5.2.5 Other End-user Industries

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

      2. 5.3.2 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. South Korea

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. Mexico

        2. Brazil

        3. Rest of Latin America

      5. 5.3.5 Middle East and Africa

        1. United Arab Emirates

        2. Saudi Arabia

        3. Rest of Middle East and Africa


    1. 6.1 Company Profiles

      1. 6.1.1 FIS

      2. 6.1.2 Thales Group

      3. 6.1.3 Ingenico Group

      4. 6.1.4 Agilysys Inc.

      5. 6.1.5 Paysafe Holdings UK Limited

      6. 6.1.6 Total System Services Inc.

      7. 6.1.7 Mastercard

      8. 6.1.8 PayPal Holdings Inc.

      9. 6.1.9 Verifone

      10. 6.1.10 Pineapple Payments

    2. *List Not Exhaustive


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Payment as a Service (PAAS) Industry Segmentation

A payment service provider offers online services to accept electronic payments through various payment methods, such as credit card, direct debit, bank transfer, and real-time bank transfer. The payment service provider uses the software as a service model widely. A payment service provider connects multiple banks, cards, and payment networks.

The payment as a service market is segmented by type of services (merchant financing, regulatory compliance, security and fraud protection, payment applications and gateways), end-user industry (retail and e-commerce, BFSI, hospitality, media and entertainment, healthcare), and geography. The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.

By Types of Services
Merchant Financing
Regulatory Compliance
Security and Fraud Protection
Payment Applications and Gateways
Other Services
By End-user Industry
Retail and E-commerce
Media and Entertainment
Other End-user Industries
By Geography
North America
United States
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Latin America
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
Rest of Middle East and Africa
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Payment as a Service (PAAS) Market Research FAQs

The Payment as a Service Market size is expected to reach USD 10.98 billion in 2024 and grow at a CAGR of 32.26% to reach USD 44.44 billion by 2029.

In 2024, the Payment as a Service Market size is expected to reach USD 10.98 billion.

FIS, Thales Group, Ingenico Group, Agilysys, Inc. and Paysafe Holdings UK Limited. are the major companies operating in the Payment as a Service Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Payment as a Service Market.

In 2023, the Payment as a Service Market size was estimated at USD 8.30 billion. The report covers the Payment as a Service Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Payment as a Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Payment as a Service Industry Report

Statistics for the 2024 Payment as a Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Payment as a Service analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Payment as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)