The payment processing solutions market is projected to witness a rate of lucrative business growth over the upcoming years due to the increasing demand for safe digital channels, across various sectors, to conduct fast and secure financial transactions. The ongoing market growth can further be ascribed to increasing penetration of smartphones and adoption of various mobile payment applications
With the growing adoption of smartphones, key market players are focusing on innovations to differentiate their solution offerings from that of competitor. These players are adopting key strategies in order to strengthen their foothold in the payment processing solutions industry. For instance, in October 2020, Thryv Holdings, Inc., a leading provider of Thryv® software, a fully-integrated, end-to-end customer experience platform to help small businesses run and grow, reportedly announced the novel launch of its first payment processing service, ThryvPaySM.
The novel software is specifically designed for service-driven small businesses. It essentially allows customers to get paid through ACH payments and credit card. The software solution also enables small businesses to book appointments, send invoices, create estimates, and get paid through a private consumer login area, online, and text, all from a single dashboard. ThryvPay makes payments more convenient, and provides transparency with each transaction.
As per a new Global Market Insights, Inc., research report, the payment processing solutions market is estimated to surpass a $140 billion valuation by 2026.
With respect to deployment model, the mobile deployment model segment is likely to grow substantially with a CAGR of around 10% over the forecast time period. This anticipated growth can be attributed to the high penetration of smartphones and increasing adoption of internet services. The rise of mobile payment applications has further resulted in increased peer-to-merchant as well as peer-to-peer transactions. Furthermore, numerous key players active in the market are developing new and innovative mobile payment processing solutions by incorporating POS terminals, BLEs, QR codes, and NFC.
In terms of end-user, the market is categorized into government and public sector, healthcare, BFSI, retail & e-commerce, and tourism & hospitality. Among these, the healthcare segment is anticipated to witness a respectable CAGR of more than 10% over the projected time period. It is required from healthcare organizations that they focus on facilitating secure payment gateways and improving the patient experience as a whole. At present, numerous companies actively operating in the industry are offering purpose designed payment solutions for the healthcare industry. Citing an instance, Total System Services LLC, provides various payment processing solutions, which includes integrated payment, veterinary payment, optical payment, medical & dental payment, and other customized solutions.
On the geographical front, Europe payment processing solutions sector is projected to witness substantial growth and is likely to account for more than 20% of the global industry share by the end of the forecast time period. Favorable government policies coupled with initiatives that are designed to improve digital banking infrastructure are anticipated to fuel regional growth over the forthcoming years.
For example, in July 2020, the European Central Bank reportedly launched a new initiative, the European Payments Initiative, through a joint decision with nearly 16 regional banks. This initiative focuses on providing a unified payment solution for individual customers and merchants. The provided unified payment solution also supports payment cards and digital wallets utilized across in-store & online transactions as well as P2P payments. Additionally, increasing adoption of smartphones in the region would further complement segment growth
Meanwhile, prominent market players are also focusing on partnerships to expand their product portfolio and gain a competitive edge over others. Citing an instance, in October 2020, PCMI Corporation, an enterprise that offers a modular package of software solutions for the administration of F&I Products, Extended Warranties, and Service Contracts, reportedly announced its partnership with a leading payment gateway provider, Infintech, for creating a novel automated process that makes it easy for administrators and dealers to streamline B2B payments.
The payment gateway of Infintech would be integrated with the PCRS (Policy Claim and Reporting Solutions™) platform of PCMI. Through the new team up, PCRS administrators now have the capability of supporting both integrated credit cards and ACH from dealers.
Global Payments, Inc., Adyen, Square, Inc., PayPal Holdings, Inc., Fiserv, Inc., and Fidelity National Information Services, Inc. among many others are some of the key players operating in the payment processing solutions market.
