Payment as a Service Global Market Report 2024

The global payment as a service market has grown rapidly in recent years. It will grow from $13.71 billion in 2023 to $16.44 billion in 2024 at a compound annual growth rate (CAGR) of 19.9%. The growth witnessed during the historic period can be credited to factors like regulatory alterations, shifts in consumer preferences, emphasis on cost efficiency, heightened security concerns, and the growing influence of the API economy.

The global payment as a service market is expected to see exponential growth in the next few years. It will grow to $35.32 billion in 2028 at a compound annual growth rate (CAGR) of 21.1%. The anticipated growth in the forecast period can be ascribed to the swift expansion in emerging markets, amplified focus on environmental sustainability, the rise of real-time payment systems, improved data privacy measures, ongoing regulatory advancements, and the drive towards offering personalized customer experiences. Significant trends projected for this period encompass the digitization of transactions, advancements in mobile technology, increased adoption of cloud technology, emphasis on partnerships and collaborations, integration of blockchain and cryptocurrency, and the utilization of artificial intelligence for fraud detection.

The projected surge in global adoption of cashless transactions is expected to propel the growth of the Payment as a Service (PaaS) market. Cashless transactions denote automated or online exchanges between individuals, companies, or organizations. PaaS technology providers and cloud-based platforms enable banks and credit unions to swiftly expand and modernize their payment capabilities without substantial initial investments. For example, as of July 2021, Southeast Asia witnessed a considerable uptake in cashless transactions, with 64% of consumers attempting cashless transactions, particularly prevalent in Vietnam (84%), Thailand (82%), and the Philippines (79%). Hence, the escalating embrace of cashless transactions globally drives the growth of the Payment as a Service market.

The burgeoning demand within the retail industry is anticipated to fuel the expansion of the Payment as a Service market. The retail industry encompasses the sector involved in selling goods and services to consumers. Payment as a Service solutions in retail promise operational efficiency, rapid integration, cost-effective security enhancements, and access to analytics and reporting tools. For instance, based on data from September 2023 by census.gov, retail trade sales witnessed a 0.6% (0.5) increase from July 2023 and a 1.6% (0.5) increase from 2022. Thus, the escalating demands within the retail sector contribute to the growth of the Payment as a Service market.

Technological advancements emerge as a pivotal trend gaining momentum within the Payment-as-a-Service market. Key companies in this sector focus on developing innovative technological solutions to fortify their positions. For instance, in December 2021, Route Mobile, operating in Payment as a Service, introduced Click2Pay - a PaaS offering instant payment solutions, streamlining communications and enhancing conversational experiences. Click2Pay integrates payment platforms seamlessly with advanced AI algorithms, enhanced analytics, and unified payment APIs, optimizing costs and enhancing the informativeness and actionability of payment reminder messages.

Major players in the Payment as a Service market concentrate on pioneering products, such as cloud-based platforms, to bolster revenue streams. Cloud-based platforms deliver computing services via the internet, encompassing servers, storage, databases, networking, software, analytics, and intelligence. For instance, Ingenico Group S.A., specializing in payment solutions, launched a Payments Platform as a Service (PPaaS) solution in December 2021. This cloud-based platform, not limited to the 35 million Ingenico POS terminals globally, fosters a developer-focused, device-neutral approach. PPaaS facilitates a many-to-many connection among various stakeholders in the payments ecosystem, benefitting banks, payment gateways, PSPs, ISVs, and dedicated acquirers. The platform continuously evolves to meet user demands, incorporating new partners and features to better serve its stakeholders.

In September 2021, Deutsche Bank AG, a renowned financial services company headquartered in Germany, completed the acquisition of Better Payment Germany GmbH for an undisclosed sum. This strategic move aimed to bolster Deutsche Bank's foothold in payment processing and acceptance within the subsequent 12 months, leveraging Better Payment's technological innovations to complement its existing suite of offerings. This acquisition was strategically positioned to facilitate Deutsche Bank's expansion in the German market, capitalizing on Better Payment's adept workforce, established dealer network, and cutting-edge technology to enhance market access and capabilities in payment processing. Better Payment Germany GmbH, the acquired entity, is a payment service provider based in Berlin.

Major companies operating in the payment as a service market report are Aurus Inc., Total System Services Inc., Ingenico Group SA, Paystand Inc., Mindgate Solutions Private Limited, VoPay International Inc., Agile Payments LLC, Route Mobile Limited, Arcus Financial Intelligence Inc., ACE Software Solutions Inc., StyloPAY Inc., FacilitaPay LLC, PaySky Holding SAL, International Business Machines Corporation., Radar Payments B.V., First Data Corporation, Paysafe Group Limited, Verifone Inc., Alpha Fintech Inc., First American Payment Systems LLC, Pineapple Payments LLC, PPRO Financial Ltd., Valitor hf., Fidelity National Information Services Inc., Helcim Inc., RAMP Holdings Inc., Jeeves Information Systems AB, Revolut Ltd., Ravelin Technology Limited

North America was the largest region in the payment as a service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the payment as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the payment as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary offerings within Payment as a Service encompass professional services and managed services. Professional services refer to intangible products or services extended by individuals or companies to assist customers in managing or enhancing specific aspects of their businesses. These services incorporate platform and service components, utilized across industries such as retail, hospitality, media and entertainment, healthcare, banking, financial services, insurance (BFSI), and various other sectors.

This report provides payment as a service market statistics, including payment as a service industry global market size, regional shares, competitors with a payment as a service market share, detailed payment as a service market segments, market trends and opportunities, and any further data you may need to thrive in the payment as a service industry. This payment as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The payments as a Service (PaaS) market includes revenues earned by entities by providing payment services such as merchant onboarding, settlement of transactions, fraud management, dashboard reporting, and reconciliation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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