Study: Global Payment Gateways Market to Grow 14 Percent

The global payment gateways market will likely grow at a CAGR of approximately 14 percent between 2016 and 2020, says a recent report by global technology research and advisory company Technavio.

The research covers the current scenario and growth prospects of the global payment gateways market during the forecast period.

It takes into account the total revenue generated from software licenses and subscription and software integration and maintenance costs to calculate the size of the market.

ICT analysts at Technavio points to three major factors that are driving the growth of the global payment gateways market:

Focus on high customer satisfaction

Meeting the changing needs of customers has become a major priority among merchants. In their attempt to improve customer satisfaction, they have come up with innovative services such as offering more flexibility in product ordering and providing different payment options using payment gateways.

Adoption of advanced technologies

The increasing use of advanced technologies has driven the number of internet users and online buyers. Technologies involved in payment gateways now include m-payment, mobile wallets and NFC technology.

Shift toward digital commerce

Companies have started restructuring their businesses and revenue strategies by embracing the digital approach. Solutions that incorporate payment solutions with digital channels have been developed riding on the immense popularity of internet-enabled devices.

Amrita Choudhury, a lead analyst at Technavio for enterprise application research, commented, “Considering the increase in the use of advanced technologies such as mobile payments and digital wallets and the high adoption of cloud technology by organizations, the global payment gateways market will progress remarkably over the next four years.”

Technavio also expects that many brick-and-mortar stores will adopt payment gateways solutions to better serve customers.