Merchant Service Providers Market Report 2025

The merchant service providers market size has grown rapidly in recent years. It will grow from $49.9 billion in 2024 to $56.97 billion in 2025 at a compound annual growth rate (CAGR) of 14.2%. The growth observed during the historic period is driven by increased usage of credit and debit cards, rising internet retail activity, growth in small business establishments, expansion of retail infrastructure, and a surge in consumer disposable income.

The merchant service providers market size is expected to see rapid growth in the next few years. It will grow to $95.61 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The projected growth during the forecast period is driven by rising demand for unified payment platforms, increasing cross-border e-commerce transactions, growing preference for flexible payment options, expansion of merchant onboarding in developing economies, and heightened merchant awareness of fraud management. Key trends expected during this period include the integration of artificial intelligence for fraud detection, adoption of biometric authentication in payments, expansion of buy-now-pay-later models, increased partnerships between banks and payment providers, and the growth of loyalty-driven digital wallets.

The increasing adoption of digital payments is expected to fuel the growth of the merchant service providers market. Digital payments, conducted electronically through mobile wallets, contactless cards, QR codes, and online banking systems, enable faster, cashless, and secure transactions. Their rise is largely driven by increasing smartphone penetration, which allows consumers to access mobile wallets and payment applications for convenient on the go payments. Merchant service providers support digital payments by ensuring secure, efficient, and reliable transaction processing, allowing customers to pay conveniently while businesses receive payments smoothly. For instance, in January 2025, the Banque de France reported that in the first half of 2024, non cash payments in the euro area reached 72.1 billion transactions, a 7.4 percent increase compared to the same period in 2023, with a combined value of 132.8 trillion dollars, up 1.9 percent. Therefore, the rise in digital payments is driving the growth of the merchant service providers market.

Leading companies in the merchant service providers market are developing advanced solutions, such as tokenization, to improve transaction security, convenience, and regulatory compliance. Tokenization is a technology that replaces sensitive payment information, such as card details, with unique non sensitive tokens that can be used to process payments without exposing the actual data. This reduces fraud risks, enhances the checkout experience, and ensures compliance within merchant service ecosystems. For example, in August 2024, PayU, a Netherlands based provider of financial and merchant services, launched the Push Provisioning platform. This platform allows customers to tokenize their cards through a single interface on their bank portal, eliminating the need to store card details with individual merchants. It simplifies merchant onboarding, strengthens online payment security, and provides easy re tokenization while building trust and facilitating smoother digital transactions.

In March 2023, Global Payments Inc., a US based provider of payment technology and software solutions, acquired EVO Payments Inc. for 4 billion dollars. Through this acquisition, Global Payments expanded its presence in key international markets, strengthened its position in the business to business payments sector, and enhanced its software and payment technology capabilities by integrating EVO’s acquiring solutions, regional partnerships, and enterprise resource planning integrations. EVO Payments is a US based provider of merchant service provider solutions.

Major players in the merchant service providers market are JPMorgan Chase & Co., U.S. Bancorp, Block Inc., Fiserv Inc., Global Payments Inc., VeriFone Inc., Shift4 Payments Inc., Stripe Inc., Adyen N.V., Elavon Inc., Lightspeed Commerce Inc., Payoneer Global Inc., Mollie BV, Helcim Inc., Dharma Merchant Services, Paddlecom Market Ltd., BlueSnap Inc., Electronic Merchant Systems, Paysafe Group, and Flagship Merchant Services.

North America was the largest region in the merchant service providers market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in merchant service providers report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the merchant service providers 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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Merchant service providers are organizations that enable businesses to accept and process electronic payments from customers. They act as intermediaries within the payment ecosystem, ensuring secure and efficient transfer of funds between parties while complying with relevant regulations and security standards.

The primary services offered by merchant service providers include payment processing, point-of-sale (POS) solutions, payment gateways, fraud and security management, and others. Payment processing involves handling electronic transactions between customers and businesses and supports various payment methods such as credit and debit cards, online banking, mobile wallets, cash-on-delivery, and digital currencies. These services can be deployed through cloud-based or on-premises solutions. Merchant services cater to organizations of all sizes, from small and medium enterprises to large corporations, and serve multiple industries, including retail, hospitality, healthcare, e-commerce, and more.

The merchant service providers market research report is one of a series of new reports that provides merchant service providers market statistics, including merchant service providers industry global market size, regional shares, competitors with a merchant service providers market share, detailed merchant service providers market segments, market trends and opportunities, and any further data you may need to thrive in the merchant service providers industry. This merchant service providers 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 merchant service providers market includes revenues earned by entities by providing services such as recurring billing services, multi-currency payment processing, chargeback management, and payment tokenization services. 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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