Global Payments As A Service Market Size By Component, By Services, By Industry, By Geographic Scope And Forecast

Payments As A Service Market Size And Forecast

Payments As A Service Market was valued at USD 7.22 Billion in 2020 and is projected to reach USD 24.67 Billion by 2028, growing at a CAGR of 16.59% from 2021 to 2028.

An increase in digital and cashless payments, Replacement of traditional payment modules by new modules, large no. of enterprises, increase in the cloud-based service model, increased awareness about security and fraud, and the emergence of hosted payment solutions are the major driving factors responsible for the growth of the market. The Global Payments As A Service Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Payments As A Service Market Definition

Payment service is used to describe software as a service to connect a group of international payment solutions. The payment as a service operates cutting-edge cloud-based platforms to provide specialized services such as payments clearing, card-issuing, cross-border payments, disbursement, and e-commerce gateways. A payment service provider provides the ability to accept credit cards, debit cards, and digital wallet payment methods for both in-person and online transactions.

It offers online services to accept electronic payments by a variety of payment methods. Online payment services are preferred to facilitate the easy exchange of goods and services. It benefits both the buyer and seller. The buyer does not need to go physically to deposit his payment. All he has to do is file a credit or debit card to online purchase. Some essential security requirements for safe electronic payments are authentication, encryption, integrity, and no-repudiation. Authentication is a method to verify a buyer’s identity before payment is authorized.

Encryption is a process of making messages unreadable except by those who have an authorized decryption key. Integrity ensures that information is not be altered or destroyed intentionally or unintentionally during transmission. No repudiation protect against customers denying the orders placed and against merchants denying the payments made. There are some characteristics of Payment as a service such as open API, data security, core integration, consent management, anomaly detection, 3rd party onboarding, regulatory reporting, 3rd party lifecycle management, strong customer authentication, and developers portal, etc.

Global Payments As A Service Market Overview

An increase in digital and cashless payments, Replacement of traditional payment modules by new modules, large no. of enterprises, increase in the cloud-based service model, increased awareness about security and fraud, and the emergence of hosted payment solutions are the major driving factors responsible for the growth of the market. An increase in transition from an on-premise model to a cloud-based service model is contributing a major factor because payment service providers are increasingly transforming their traditional physical server and on-premise model to cloud-based deployments to reduce operating cost and provide products at a faster rate.

The shift in cloud-based deployment has increased the number of alternate digital wallets and omnichannel solutions. During covid-19, the cash transactions have reduced and people started to use mobile payments. As a result, customers have adopted different digital and contactless payment transactions. Digital wallets play a major role in between sellers and buyers. These wallets store the Payee’s information and eliminate the need to carry cash. So this factor contributes to the market growth due to the increase in digital and cashless payments.

However, the lack of global standard payment guidelines is an important factor to restrain the market. Developing digital and advanced technologies such as 5g, and rising adoption of digital payment models by developing countries, high-quality customer’s experience, and services with quick and secure payment thriving on secure and real-time transactions, government initiatives for payment methods, and integration of payment procedures are becoming an opportunity to the Payments As A Service Market

Global Payments As A Service MarketSegmentation Analysis

The Global Payments As A Service Market is segmented based on Component, Services, Industry and Geography.

Payments As A Service Market, By Component

• Platform• Services

We can break down the market by Component into two main partsPlatform and Services. Seems like the Platform side, which handles things like security and fraud detection, payment applications, gateways, merchant financing, and keeping things legal (regulatory compliances), is going to be the big growth area for a while. You know, dealing with payments isn't really the core business for folks in e-commerce, healthcare, retail, banking, and others, so a lot of them need to plug in these payment platforms. That's where a payment service comes in, offering a platform, gateways, and security features to those industries. Plus, artificial intelligence is stepping up to help with risk management and catching fraudsters. But don't count the Service Segment out! It's predicted to grow even faster because everyone's trying to make the customer experience better.

Payments As A Service Market, By Services

• Professional Services• Managed Services

Based on Services, the market is segmented into professional services and managed services, etc. From services, a Few years ago, professional services held the largest market share due to the rising demand for API-based services with the transformation of traditional checks, to digital payments. Professional services include training, maintenance, consulting, integration, and deployments, etc. Managed services are growing faster because it provides a complete package of solutions to its customers and enhances customer’s experience management.

Payments As A Service Market, By Industry

• Retail and commerce• Travel and hospitality• Healthcare• BFSI• Others

When we look at which industries are using these services, we see the market broken down into areas like retail & commerce, travel and hospitality, healthcare, BFSI, and even "Others" to cover everything else. Right now, the retail and commerce sector is expected to be the big one, thanks to everyone shopping online more and more. Plus, because SaaS is becoming so popular, payment services are getting implemented everywhere. They're also embracing cool new tech like digital stores and artificial intelligence to really stand out. On the other hand, healthcare is predicted to grow the fastest in the coming years, mainly because there's more money being spent on medicines, supplies, and medical equipment.

Payments As A Service Market, By Geography

• North America• Europe• Asia Pacific• Rest of the world

Based on Geography, the Global Payments As A Service Market is classified into North America, Europe, Asia Pacific, and Rest of the world. North America accounted for the largest growing region in past years, due to the adoption of a payment as a service model over a traditional model. It is the hub for small, medium, and large enterprises, and the number of cashless transactions is increased in this area. Whereas, Asia-Pacific is expected to become the fastest-growing segment due to the growing retail sector and presence of a majority of small and medium-sized enterprises in this region.

Key Players

The “Global Payments As A Service Market” study report will provide a valuable insight with an emphasis on the global market. The major players in the market are First Data(US), Verifone(US), Alpha Fintech(Ireland), Pineapple Payment(US), FIS(US), TSYS(US), Paysafe(UK), Aurus(US), Helcim(Canada), Valitor( Iceland),etc. 

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight to the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

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We'll dive into the market with both qualitative and quantitative analysis, breaking it down by economic and, well, everything else! Expect market values in juicy USD Billion figures for each segment – down to the tiniest sub-segment. We'll point out which regions and segments are set to explode and which will rule the roost. Get ready for a geographical breakdown, showing you where the product/service is being lapped up and the factors influencing each region. We’ll give you the competitive landscape, complete with rankings of the big players, new product launches, partnerships, expansions, and those all-important acquisitions from the last five years. Speaking of players, we'll offer extensive company profiles including an overview, unique insights, benchmarking against competitors, and revealing SWOT analyses. What about the future? We'll give you the current and future market outlook considering recent growth, opportunities, drivers, and the challenges faced by emerging and developed regions. We'll even throw in a Porter's five forces analysis for a deep dive and guide you through the Value Chain for a complete picture. See the dynamics in play now and the opportunities coming down the road. Oh, and we haven't forgotten you! Enjoy 6 months of post-sales analyst support.

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