Payment Processing Services Market Trends
Category Intelligence on Payment Processing Services covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Payment Processing Services Global Market Outlook:
Market Size (2020 Estimate) : $264 billion
Annual Growth Rate (2020 Estimate) : -25 percent
The global payment processing market is expected to decline at a rate of 25 percent in 2020, due to the COVID-19 pandemic, the economic slowdown, and the decrease in the volume of purchase transactions, due to lockdowns, and is expected to recover at a rate of 5 percent from 2021 to 2025.
Growth Drivers:
- Globally, the number of customers using voice assistants is increasing and encouraging payments via voice, mainly for e-commerce transactions
- Machine learning can help retailers to offer targeted products and encourage usage of payment card.
- Solutions for digital payments is expected to drive the growth of this market
Key Trends in Payment Processing Services
QR Code Payments & Mobile Apps
• QR Code seems to be a cost-effective alternate option for merchants during the covid-19 times
Focus on building merchant loyalty and increasing volume to stimulate growth, due to the outbreak of COVID-19
Boosting merchant loyalty is expected to resolve some of the problems:
- Waiving of rental of POS terminal, if the merchant meet certain thresholds, in terms of transaction volume
- Providing discounts or waiving of certain fees to merchants, who provide online or contactless payment options or those who sell essentials during the lockdown
Market Toward Consolidation
- Industry consolidation is driven by large processors improving their economies of scale and expanding their geographical footprint through acquisitions
- Reduction in revenue per transaction has resulted in the expansion of processor’s service portfolios and deepening of value chain and market consolidation among processors
