Online payment gateway market estimated to grow at 14.8% CAGR: Valuates

Mar. 27, 2022 9:17 AM ETSTRIP, SQ, V, MA, GPN, ADYYF, PYPLBy: Khyathi Dalal, SA News Editor28 Comments

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  • Valuates Reports data indicates that global online payment gateway market size is estimated to reach ~$6403.3M by 2027, from ~$2436.7M in 2020, growing at a CAGR of 14.8% during 2021-2027.
  • Factors supporting the growth are - evolving payment methods, rising e-commerce use, improved broadband connectivity, government initiatives that support digitizing payment, increased mobile usage, and the emergence of new technologies.
  • Segmented on application - Micro and Small enterprises are expected to be the most lucrative segment while on type - hosted payment gateway is seen as the most lucrative segment.
  • Region-wise, China is the largest market for online payment gateways, with about 30% of the market, followed by Europe and U.S., each with ~20%.
  • Separately, a Future Market Insights report sees global sales of the online payment gateway market to exceed $106.1B in 2022 marking a CAGR of 10.4% (vs. 9.5% CAGR reported for 2013 to 2021) and by 2028 it is likely to cross $191.1B.
  • Hosted payment gateways are expected to account for 44.6% of the total online payment gateway market in 2022.
  • Gpay, Paypal and Amazon are among the online payments that offer cashbacks, rewards and other vouchers for attracting consumers to use online payment gateways.
  • In early March, a Bernstein analyst analyzed payment stocks and other industry insights.
  • In mid-March, Mizuho Securities pointed that payment stocks are likely to see a nice rebound in 2H22.
  • Quick look at profitability metrics of a few Stocks to Watch in the sector: (STRIP), (PYPL), (OTCPK:ADYYF), (GPN), (MA), (V), (SQ)

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