A new report has predicted that “Payment Processing Solutions Market” will grow from USD 74.4 billion in 2020 to USD 120.7 billion by 2025, at a CAGR of 10.2% during the forecast period.
Major driving factors for the payment processing solutions industry are the increasing initiatives for the promotion of digital and online payments, the high proliferation of smartphones, focus on improving customer experience, and customer demand for immediacy of payments and settlements. These factors are expected to drive the global payment processing solutions market.
The report published by MarketsandMarkets listed some of the prominent key players in the market as follows:
- PayPal (US)
- Fiserv (US)
- Global Payments (US)
- FIS (US)
- Square (US)
- Stripe (US)
- MasterCard (US)
- Visa (US)
- Dwolla (US)
By payment method, credit card segment to account for the highest market share during the forecast period
The credit card segment is expected to have the largest market size in the payment processing solutions market.
Credit card continues to be the preferred way to pay at department stores, most likely due to people preferring credit card for higher-value purchases.
A credit card enables consumers to build a continuing balance of debt, subject to interest being charged.
A credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer.
Issuing banks and other financial institutes offer various credit cards, such as business, secured, prepaid, and digital cards.
By vertical, BFSI captured the highest market share after retail and eCommerce in 2020
The BFSI vertical is the frontrunner in the adoption of new technologies. Over the past few years, it has focused on improving its services and enrich customer experience.
The introduction of digital payment has benefitted financial institutions in several ways.
Digital payment platforms allow financial institutions to offer differentiated payment services to potential customers.
Thus, leading financial institutions across the globe have launched mobile and web applications to carry out seamless financial transactions.
In regard to this, several banks have ceased their physical branches and are shifting their focus to the digital mode of payment.