Payment as a Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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.

Market Snapshot

payment as a service market
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 31.23 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Payment as a Service market is expected to register a CAGR of 31.23% during the forecast period (2021-2026). 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. Also, the rise in demand for easy and convenient purchase of goods and services resulted in a radical shift towards digital and cashless payments. The rise in e-commerce business is further boosting the global payment service provider market.

  • Recently, there has been an unprecedented emergence of fast-growing MNCs with digital platforms, fuelled by the convergence of mobile devices, data, and the cloud. In October 2018, Swedish payments startup Klarna secured $20 million in funding from fashion retailer H&M to build an omnichannel payments service spanning H&M’s physical and online storefronts. The deal covers ‘frictionless’ in-store, mobile and online payments, better delivery and return process, and more flexible payment options.
  • Further, regulatory initiatives by the government to promote payment solutions based on secure and real-time transactions and optimized customer experience for quick and secure payment methods are the major factors driving the growth of the Payment as a Service market.
  • The vendors are offering competent services to deal effectively with the resolution of next-generation API-enabled payment platform services. These services help reduce infrastructure costs, increase overall revenues, and improve performance. However, the increase in cybercrimes is hampering the global payment service provider market. The payment service provider is focusing on offering enhanced security solutions.

Scope of the Report

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 to multiple banks, cards, and payment networks.

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
BFSI
Hospitality
Media and Entertainment
Other End-user Industries
Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
Japan
South Korea
Australia
Rest of Asia-Pacific
Latin America
Mexico
Brazil
Rest of Latin America
Middle East & Africa
United Arab Emirates
Saudi Arabia
Rest of Middle-East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Retail Sector Expected to be a Significant Contributor

  • Retailers are rapidly adopting digital payments 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, in 2017, 1.5 billion people worldwide preferred online shopping. By 2019, the number will grow to 2 billion digital buyers. Also, according to 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 U.K. retail spending was made by cards.
  • Moreover, the retailers are also adopting innovative technologies, to increase their visibility and presence in the market. For instance, Walmart, the largest retailer in the world, recently announced it would enable customers to pay for goods in-store using a PayPal Cash Mastercard. The retailer aims to integrate the payment provider’s service, allowing customers to withdraw money and load money into their account at Walmart stores using the PayPal mobile app.
  • Furthermore, many payment service providers are expanding their businesses to increase their market presence. For instance, Amazon Pay, the online payments service owned by the world’s biggest online retailer, is planning to introduce “scan and pay" service at neighborhood stores. Amazon has already introduced the payments service in department store chain Shoppers Stop, in which the online retailer owns a 5% stake, and will soon set up the necessary infrastructure at grocery chain More.
  • Another significant benefit of digital payment is the ability to collect customer data, for marketing purpose. This enables retailers to build customer relationship after their visit or purchase, and further work towards customer acquisition and retention.
payment as a service market

Asia Pacific to be the Fastest Growing

  • The Asia-Pacific region is expected to depict a substantial growth owing to the increased demand for integrated payment solutions and advancements in payment technologies in the region. Furthermore, the rise in penetration of smartphones and the internet in the region is propelling the market.
  • Countries in the region such as Japan, China, Australia, South Korea, and New Zealand are contributing significantly towards 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. 
  • Also, many small retailers earlier relied more on cash, but are rapidly deploying 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 are also investing in the Asia-Pacific region to expand their businesses by tapping the growing market. For instance, Visa, the global leader in payments technology, announced in November 2018, that it is expanding its fast-track program to support fintechs in the Asia Pacific that are developing the next generation of digital payment solutions. The fast-track program speeds up the process for fintechs to integrate their payment solutions with VisaNet, Visa’s global network.
payment as a service market

Competitive Landscape

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 engaging in mergers and acquisitions, to increase market share and gain market traction.

  • In May 2019 - Ingenico ePayments, the ecommerce division of Ingenico Group, recently announced that it has been selected as the payment partner for Radial, a bpost group company, which provides services to some of the world’s most popular retail brands. The partnership will help Radial leverage Ingenico’s technology to help retailers maximize online and mobile sales while eliminating fraud risk.
  • In April 2019 - Paysafe Group, a global payments provider, recently expanded its partnership with Payment Source to include PaySimply, an online portal allowing tax and bill payment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rise in E-commerce Business

      2. 4.2.2 Corporate and Retail Payments Demands are Increasing at a Global Level

    3. 4.3 Market Restraints

      1. 4.3.1 Increase in Cyber Crimes

    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

  5. 5. MARKET SEGMENTATION

    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 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 South Korea

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Latin America

        1. 5.3.4.1 Mexico

        2. 5.3.4.2 Brazil

        3. 5.3.4.3 Rest of Latin America

      5. 5.3.5 Middle East & Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 Saudi Arabia

        3. 5.3.5.3 Rest of Middle-East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    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
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Payment as a Service Market market is studied from 2018 - 2026.

The Payment as a Service Market is growing at a CAGR of 31.23% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

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

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!