Payment Bank Solutions Market Size - By Type (Hardware, Software), End User (Government, BFSI, Healthcare, Retail, Others), Growth Prospects, Regional Outlook, Competitive Industry Share & Forecast, 2024 - 2032

Payment Bank Solutions Market Size - By Type (Hardware, Software), End User (Government, BFSI, Healthcare, Retail, Others), Growth Prospects, Regional Outlook, Competitive Industry Share & Forecast, 2024 - 2032

Payment Bank Solutions Market Size

Payment Bank Solutions Market size was valued at USD 57.7 billion in 2023 and is estimated to register a CAGR of over 13.5% between 2024 and 2032. The increasing demand for swift payment processing and transfers is a key factor driving the market growth. Payment banks, with their digital platforms and efficient infrastructure, are well-positioned to meet the needs. They offer real-time or near-instantaneous payment processing, which reduces delays and improves overall transaction efficiency, thereby making them a preferred choice for those requiring speedy & reliable financial services.

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Continuous advancements in debit & credit card technologies are contributing to the payment bank solutions market size. These innovations, such as contactless payments, enhanced security features, and integration with digital wallets, are making card-based payments more seamless & convenient. Payment banks often leverage these technologies to provide customers with easy access to digital payment methods, thereby driving product adoption and expanding the customer base as consumers are increasingly seeking hassle-free & secure payment options.

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Payment banks operate in a highly regulated environment, which can lead to both opportunities and challenges. While regulations are intended to ensure the stability & security of financial systems, compliance can be complex, costly & subject to frequent changes. Navigating these regulations, obtaining the necessary licenses, and adhering to stringent Anti-Money Laundering (AML) & Know-Your-Customer (KYC) requirements can pose significant administrative & operational burdens. Ensuring ongoing compliance is essential but can be resource-intensive and may require legal expertise to navigate the evolving regulatory landscapes.

COVID-19 Impact

The COVID-19 pandemic had positive impacts on the payment bank solutions market. It accelerated the adoption of digital banking and contactless payment solutions as people sought safer & more convenient ways to manage their finances. The increased reliance on online services and e-commerce platforms boosted the use of payment banks for digital transactions and financial management. This surge in demand for digital banking services positioned payment banks as crucial players in meeting the evolving financial needs of individuals and businesses during & after the pandemic.

Payment Bank Solutions Market Trends

Digital transactions conducted through credit cards, especially when utilizing payment networks, are contributing to the payment bank solutions industry growth. These transactions offer speed, convenience, and security, thereby attracting more users to payment banks for their digital payment needs.

For instance, in August 2023, SBI Card and the National Payments Corporation of India (NPCI) entered into a collaboration to integrate SBI credit cards into the RuPay platform, enabling SBI card users to engage in UPI transactions via their RuPay-issued credit cards. To access this feature, customers should register their credit cards with third-party UPI applications. This trend is driving the continued expansion of payment bank solutions in the modern financial landscape.

Payment Bank Solutions Market Analysis

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Based on type, the software segment held over 67% of the market share in 2023. The proliferation of payment applications designed for merchants to accept cashless payments is a key factor driving the software segment growth. For instance, in May 2023, YES BANK introduced YES PAY EASY, a mobile application designed to empower small-scale merchants including traders, retailers, and professionals by allowing them to accept immediate cashless payments from their clientele.

This app equips merchants to conduct transactions using their mobile phones, thereby offering a range of digital options such as Bharat QR, Tap-On-Phone, and SMS Pay. This trend is propelling the adoption of payment bank software solutions as businesses seek efficient ways to process cashless payments, expand their customer base, and stay competitive in an increasingly digital economy.

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Based on end user, the retail segment accounted for 34% of the payment bank solutions market share in 2023. Retailers are adopting advanced payment solutions to offer seamless and convenient checkout experiences, whether in physical stores or online platforms. The rising popularity of e-commerce, contactless payments, and digital wallets has pushed retailers to embrace these technologies to stay competitive and enhance customer satisfaction, thereby fueling the growth of payment bank solutions in the retail sector.

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North America payment bank solutions market was over 39% of the revenue share in 2023. Technological advancements play a pivotal role in driving the market revenue. Innovation in mobile banking apps, contactless payment technologies, blockchain, and artificial intelligence enhances the efficiency, security, and convenience of digital transactions. These advancements cater to the preferences of tech-savvy consumers and enable payment banks to provide seamless & innovative financial services. Additionally, advancements in data analytics and cybersecurity are bolstering trust & compliance, further fostering the adoption of payment bank solutions across North America.

Payment Bank Solutions Market Share

Major companies operating in the payment bank solutions industry are

• EdgeVerve Systems
• MasterCard Incorporated
• Comviva
• Gemalto (Thales Group)
• IBM
• ACI Worldwide
• BPC
• Adyen N.V.
• Authorize.net.

The payment bank solutions industry features intense competition with numerous players offering diverse solutions that leverage data science, AI, and advanced technologies.

Payment Bank Solutions Industry News

• In September 2023, BNY Mellon launched BankifySM, a banking payments solution designed to facilitate organizations in receiving consumer payments from bank accounts. This solution ensures a smooth user experience and assures guaranteed funds for business receivables.
   
• In April 2023, Infosys Finacle, a part of EdgeVerve Systems and a wholly owned subsidiary of Infosys, announced the successful overhaul of XacBank's technology infrastructure using the Finacle Digital Banking solution suite. This comprehensive suite now drives XacBank's retail & corporate banking operations, thereby establishing a strong digital foundation that aligns with the bank's growth objectives.

The payment bank solutions market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Type

• Hardware
  • ATM Cards
  • Debit Cards
  • Forex Cards 
• Software
  • Platforms
  • Mobile Apps

Market, By End User

• Government
• BFSI
• Healthcare
• Retail
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the payment bank solutions market?

The market size of payment bank solutions reached USD 57.7 billion in 2023 and is set to observe over 13.5% CAGR between 2024 and 2032, owing to the increasing demand for swift payment processing and transfers.

How will software segment influence the payment bank solutions industry?

The software segment accounted for a market share of around 67% in 2023, due to the proliferation of payment applications designed for merchants to accept cashless payments.

What are the factors driving North America payment bank solutions market?

North America market held over 39% revenue share in 2023, attributed to the technological advancements across the region.

Who are the leading companies in the payment bank solutions landscape?

EdgeVerve Systems, MasterCard Incorporated, Comviva, Gemalto (Thales Group), IBM, ACI Worldwide, BPC, Adyen N.V., and Authorize.net.