Healthcare Payment Processing Market Report 2025

The healthcare payment processing market size has grown rapidly in recent years. It will grow from $20.98 billion in 2024 to $24.15 billion in 2025 at a compound annual growth rate (CAGR) of 15.1%. The growth during the historic period can be attributed to the increasing adoption of electronic health records, rising demand for efficient claims management, growing emphasis on cost containment in healthcare, expanding use of automation in payment processes, and heightened regulatory compliance requirements.

The healthcare payment processing market size is expected to see rapid growth in the next few years. It will grow to $41.9 billion in 2029 at a compound annual growth rate (CAGR) of 14.8%. The growth during the forecast period can be attributed to the increasing adoption of value-based care models, the rise of electronic payments, growing demand for real-time payment solutions, expanding telehealth services, and a stronger focus on the patient financial experience. Key trends in the forecast period include advancements in blockchain technology, integration of artificial intelligence, innovation in cloud-based payment platforms, development of advanced fraud detection systems, and the adoption of mobile payment solutions.

The growing adoption of telehealth is expected to drive the expansion of the healthcare payment processing market in the coming years. Telehealth involves delivering healthcare services and information remotely via phones, video calls, or mobile apps, allowing patients to consult with healthcare providers without visiting clinics or hospitals. Its increasing use is driven by the demand for continuous and real-time monitoring of patients with chronic conditions. Healthcare payment processing facilitates telehealth by enabling secure, real-time digital transactions, simplifying remote payments, and reducing administrative workload through automated billing and claims. This enhances efficiency and accessibility in virtual care settings. For example, according to the Australian Digital Health Agency, between March 2021 and July 2022, over 95,000 healthcare providers delivered telehealth services, resulting in approximately 118.2 million telehealth visits that reached around 18 million patients. Consequently, the rising prevalence of telehealth is fueling growth in the healthcare payment processing market.

Key players in the healthcare payment processing market are focusing on advanced solutions such as real-time reimbursement acceleration to improve revenue cycle efficiency, reduce administrative burden, and provide faster access to working capital for healthcare providers. Real-time reimbursement acceleration enables rapid processing and settlement of payer-to-provider payments, granting immediate access to funds and minimizing delays in the revenue cycle. For instance, in April 2025, Rectangle Health Inc., a US-based software company, launched PayerSync, a platform that streamlines healthcare payment workflows. PayerSync integrates payer and provider systems, allowing reimbursements and explanation of payments (EOPs) to be posted with a single click into practice management or electronic medical record (EMR) systems. By automating these processes, the platform reduces manual effort, accelerates payment cycles, and supports secure, data-rich transactions for better reconciliation.

In August 2023, Waystar Holding Corp., a US-based healthcare payments software company, acquired HealthPay24 Inc. for an undisclosed amount. Through this acquisition, Waystar aims to simplify healthcare payments by expanding its network to serve more provider locations and patients, delivering a seamless patient financial experience while ensuring timely provider payments. HealthPay24 Inc. is a US-based healthcare payment technology company that provides cloud-based solutions for secure, real-time patient payment processing.

Major players in the healthcare payment processing market are Optum Inc., PayPal Holdings Inc., GE Healthcare Technologies Inc., Global Payments Inc., Square Inc., Experian Health Inc., Elavon Inc., Conifer Health Solutions LLC, Waystar Inc., Veradigm Inc., Zelis Healthcare LLC, Availity LLC, Greenway Health LLC, Tebra Technologies Inc., Pineapple Payments Inc., The SSI Group LLC, Rectangle Health Inc., Fattmerchant Inc, Electronic Merchant Systems LLC, Plexis Healthcare Systems Inc., Dharma Merchant Services Inc.

North America was the largest region in the healthcare payment processing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in healthcare payment processing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the healthcare payment processing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

Healthcare payment processing refers to the systems and technologies used to manage, authorize, and facilitate financial transactions among patients, healthcare providers, and payers such as insurance companies. These systems streamline and secure the flow of funds, reduce administrative burdens, and ensure timely payments across the healthcare ecosystem.

The main components of healthcare payment processing include software, hardware, and services. Software manages transactions, billing, claims, and fraud detection to ensure smooth payment workflows. It can be deployed through on-premises or cloud-based solutions, with payment methods including credit cards, debit cards, electronic funds transfers, mobile payments, and more. Key technologies include cloud-based platforms, on-premises software, mobile applications, integrated systems, artificial intelligence, and automation. The primary end-users comprise hospitals, clinics, diagnostic centers, ambulatory surgical centers, and other healthcare providers.

The healthcare payment processing market research report is one of a series of new reports that provides healthcare payment processing market statistics, including the healthcare payment processing industry global market size, regional shares, competitors with the healthcare payment processing market share, detailed healthcare payment processing market segments, market trends, and opportunities, and any further data you may need to thrive in the healthcare payment processing industry. This healthcare payment processing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The healthcare payment processing market consists of revenues earned by entities by providing services such as medical billing and coding services, claims management and processing, patient payment solutions, revenue cycle management, and payment gateway and merchant services. The market value includes the value of related goods sold by the service provider or included within the service offering. The healthcare payment processing market also includes sales of point-of-sale terminals, payment gateways, billing and invoicing software, electronic funds transfer systems, and healthcare payment kiosks. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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