The global payment gateway market size was valued at USD 40.03 Billion in 2025. The industry is expected to grow at a CAGR of 17.90% during the forecast period of 2026-2035 to reach a valuation of USD 207.74 Billion by 2035.
The global payment gateway market plays a pivotal role in modern commerce by securely facilitating online transactions between buyers and sellers across digital platforms. As e-commerce continues to surge, especially in emerging economies, payment gateways have become essential to enabling fast, seamless, and secure financial exchanges. Government initiatives promoting cashless economies—such as India's Digital India program and Brazil’s Pix system—are accelerating adoption in both developed and developing markets. In India, Unified Payments Interface (UPI) reached 19.78 billion transactions in March 2025 and a total value of Rs. 24,77,000 crores. This denotes a 13% rise in value along with a 14% rise in volume since February.
Additionally, global regulatory shifts toward open banking and secure customer authentication are driving gateway providers to evolve rapidly and adopt compliant, interoperable technologies, supporting the growth of the payment gateway market. In late 2024, the Consumer Financial Protection Bureau (CFPB) in the United States finalised rules that empower consumers to share their financial data with third-party providers, thus, aiming to enhance competition and innovation in the financial sector. These developments underscore the critical role of payment gateways in facilitating secure, efficient, and inclusive digital transactions globally.
In addition, strategic investments and consolidation are reshaping the competitive landscape in payment gateway market. Major players are pursuing mergers and acquisitions to expand their geographic reach and strengthen security frameworks. The increasing role of artificial intelligence, blockchain for fraud detection, and tokenization for privacy compliance are turning payment gateways into multifunctional digital commerce tools essential to the global economy.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
17.9%
Value in USD Billion
2026-2035
*this image is indicative*
| Global Payment Gateway Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2025 |
|
Historical Period |
USD Billion |
2019-2025 |
|
Forecast Period |
USD Billion |
2026-2035 |
|
Market Size 2025 |
USD Billion |
40.03 |
|
Market Size 2035 |
USD Billion |
207.74 |
|
CAGR 2019-2025 |
Percentage |
XX% |
|
CAGR 2026-2035 |
Percentage |
17.90% |
|
CAGR 2026-2035- Market by Region |
Asia Pacific |
19.5% |
|
CAGR 2026-2035 - Market by Country |
India |
25.4% |
|
CAGR 2026-2035 - Market by Country |
China |
20.7% |
|
CAGR 2026-2035 - Market by Type |
Hosted |
20.4% |
|
CAGR 2026-2035 - Market by End Use |
Retail and E-Commerce |
20.4% |
The rapid growth of e-commerce continues to be a significant driver which is increasing the demand of the payment gateway market. Online shopping has become a preferred mode of purchasing goods and services, necessitating secure and efficient payment gateways to facilitate seamless transactions. The proliferation of smartphones and increased internet penetration have further accelerated the adoption of digital payments, especially in emerging markets. India has approximately 944.7 million wireless internet users as of November 2024, up from 941.5 million in October 2024. Additionally, the number of smartphones has grown dramatically, and by FY25, it is predicted to reach 1.1 billion, which is helping the India’s digital sector.
Payment gateway providers are increasingly integrating advanced technologies such as artificial intelligence (AI), machine learning (ML), and blockchain to enhance security, efficiency, and user experience, thus boosting the payment gateway market expansion. AI and ML are being utilized for real-time fraud detection and risk management, enabling quicker and more accurate identification of suspicious activities. Mastercard, for instance, has implemented AI-driven systems that analyse up to 160 billion transactions annually, assigning real-time risk scores to detect fraudulent activities within milliseconds. Their Decision Intelligence Pro tool further assesses user behaviour to validate transactions, employing behavioural biometrics to prevent identity theft and first-party fraud.
Regulatory frameworks are evolving to address the complexities of the digital payment ecosystem. In the European Union, for example, retailers like Amazon, H&M, Ikea, Aldi, and Marks & Spencer, among others have urged the European Commission to regulate the high and opaque fees charged by major card providers such as Visa and Mastercard, highlighting the need for greater transparency and fairness in the market. Additionally, the European Commission has launched an investigation to assess whether the fees imposed by Visa and Mastercard negatively impact retailers. The Commission distributed questionnaires to retailers and payment service providers, seeking to determine if these fees have harmed businesses between 2016 and 2023.
Embedded finance, where financial services are integrated into non-financial platforms, is gaining traction, particularly in the B2B sector. Businesses are embedding payment solutions directly into their platforms to streamline transactions and improve customer experience. This trend is transforming the B2B payment landscape, enabling faster and more efficient processes in the payment gateway market. As embedded finance continues to evolve, it is expected to unlock significant economic opportunities. Edgar, Dunn & Company estimates that embedded B2B payments could represent a USD 16 trillion opportunity, highlighting the vast potential for growth in this sector.
The payment gateway market is witnessing increased strategic partnerships and consolidation as companies seek to expand their global footprint and enhance service offerings. For instance, In April 2025, Global Payments announced that it is acquiring Worldpay in a USD 22.7 billion deal in order to strengthen its international presence and transaction capacity. Such mergers and acquisitions are reshaping the competitive landscape, allowing companies to leverage synergies, access new markets, and offer more comprehensive solutions to clients. This trend underscores the dynamic nature of the payment gateway market, and the strategic moves companies are making to stay competitive.
The Expert Market Research’s report titled “Global Payment Gateway Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Breakup by Type
Key Insight: Hosted payment gateways are gaining traction, particularly among small and medium-sized enterprises (SMEs), due to their ease of integration and robust security features. These gateways redirect customers to a third-party platform for transaction processing, thereby reducing the merchant's responsibility for handling sensitive payment data. For instance, the integration of hosted payment solutions by platforms like Shopify and Wix has enabled numerous SMEs to offer seamless and secure checkout experiences without significant technical overhead.
Breakup by Enterprise Size
Key Insight: Large enterprises in the payment gateway market are increasingly adopting advanced payment gateway solutions to manage high transaction volumes and meet the demands of a global customer base. The need for robust, scalable, and secure payment systems is paramount, especially as these organizations expand their digital commerce operations. For instance, PayPal's launch of "PayPal Open" in early 2025 exemplifies this trend, offering a unified platform that consolidates various services to facilitate seamless transactions for large-scale merchants. Such innovations enable large enterprises to maintain operational efficiency and provide enhanced customer experiences in an increasingly competitive digital marketplace.
Breakup by End User
Key Insight: The BFSI sector is rapidly adopting digital payment gateways to enhance transaction security and customer experience. The integration of advanced technologies like AI and blockchain is streamlining operations and reducing fraud. For instance, banks are leveraging AI for real-time fraud detection and personalized financial services. In May 2025, Mastercard launched a new AI tool, Decision Intelligence Pro, which assesses past behaviours and user characteristics to validate transactions, employing behavioural biometrics and algorithms that track user interactions to identify imposters and prevent fraud.
Breakup by Region
Key Insight: North America's payment gateway market is expanding rapidly, driven by the surge in e-commerce and digital transactions. In the United States, digital wallets are currently the payment option with the highest rate of growth. Nearly half (48%) of American customers are using a digital wallet in the last 90 days, which is a 12-percentage point increase from 2023. The proliferation of mobile payment apps and contactless payment options has further accelerated the shift towards digital transactions.
Growth of API-Based Payment Gateways Among Enterprise and Tech-Driven Merchants
As per the payment gateway market analysis, non-hosted, or API-based, payment gateways are experiencing growth driven by larger enterprises and tech-savvy businesses seeking greater control over the payment process and customer experience. These gateways allow transactions to be processed directly on the merchant's website, enabling customized checkout flows and integration with internal systems like CRM and ERP platforms. Companies like Stripe and Adyen offer robust APIs that facilitate such integrations, allowing merchants to tailor the payment process to their specific requirements.
SMEs Drive Digital Payment Adoption Amid Rapid Fintech Growth
As per the payment gateway market report, SMEs are rapidly embracing digital payment gateways to expand their market reach and improve financial operations. The shift towards online transactions has been accelerated by increased internet penetration and the proliferation of smartphones. In India, a recent report by the Small Industries Development Bank of India (SIDBI) highlighted that 90% of Micro, Small, and Medium Enterprises (MSMEs) now accept online payments, indicating a significant move towards digitalization. Furthermore, fintech platforms like Tide have seen substantial growth in SME adoption, with India becoming its largest market by customer count as of May 2025.
Digital Content and Online Retail Drive Payment Gateway Demand
The media and entertainment industry is experiencing a surge in digital content consumption, leading to increased demand for seamless payment solutions. OTTplay Premium partnered with GTPL Hathway, in May 2025, to launch GTPL Genie+, offering access to 29+ OTT platforms in India. This collaboration highlights the rising demand for diverse digital entertainment, with the service providing a seamless viewing experience across devices, driven by AI-driven content recommendations. The partnership aims to “democratize digital entertainment” for millions, reflecting the scale of digital content consumption in India alone.
The retail and e-commerce sector continues to be a significant driver of the payment gateway market, fueled by increasing online shopping activities and the demand for seamless digital payment solutions. With global e-commerce sales projected to grow more than 50% by 2025, retailers are prioritising the integration of efficient payment gateways to handle high transaction volumes.
Europe and Asia Pacific Lead the Payment Gateway Transformation
Europe's payment gateway market is witnessing robust growth due to the increasing adoption of digital payments and regulatory initiatives promoting financial integration. Efforts like the European Payments Initiative (EPI) aim to create a unified payment system across the EU, enhancing cross-border transaction efficiency. A tangible outcome of the EPI is the launch of Wero, a European mobile payment system introduced in July 2024. Wero is designed to replace various national payment services, such as Giropay in Germany and Paylib in France, with a cohesive, real-time payment solution.
|
CAGR 2026-2035 - Market by |
Country |
| India |
25.4% |
| China |
20.7% |
| Brazil |
19.9% |
| Mexico |
18.7% |
| Australia |
13.3% |
| Japan |
11.7% |
| USA |
XX% |
| Canada |
XX% |
| UK |
XX% |
| Germany |
XX% |
| France |
XX% |
| Italy |
XX% |
| Saudi Arabia |
XX% |
Asia Pacific is experiencing significant growth in the payment gateway market, fueled by rapid digitalization and the proliferation of mobile commerce. Countries like China, India, and Japan are leading this growth, with increasing internet penetration and smartphone usage driving online transactions. Rakuten Card in Japan aims to nearly double its annual operating profit by expanding into the B2B payments market, which is largely untapped. With over 30 million credit cards issued, Rakuten plans to leverage its relationship with small- and medium-sized enterprises and its partnership with Mizuho Financial Group to reach larger corporates.
Key players in the global payment gateway market are focusing on expanding their global reach by entering new markets, enhancing cross-border capabilities, and optimizing transaction processing infrastructure. They are integrating advanced technologies like AI, tokenization, and blockchain to strengthen fraud prevention, improve transaction speed, and ensure regulatory compliance. These companies are also tailoring solutions for specific sectors, including retail, travel, and B2B commerce, to meet evolving customer expectations. Additionally, firms are deepening partnerships with banks, fintech platforms, and e-commerce providers to streamline payment experiences across channels. They are investing in scalable APIs and developer-friendly tools to support seamless integration with third-party platforms. Emphasis is also being placed on localization—offering multi-currency support, region-specific payment methods, and language customization—to better serve users in diverse markets. Sustainability, cybersecurity, and compliance remain ongoing strategic priorities.
Headquartered in San Jose, California, PayPal was founded in 1998. It is a global leader in digital payments, enabling individuals and businesses to make secure online transactions. With services spanning e-commerce, peer-to-peer transfers, and merchant solutions, PayPal supports operations in over 200 markets and offers localized payment options across multiple currencies and platforms.
Founded in 2010 and based in San Francisco, California, Stripe is a technology company that builds economic infrastructure for the internet. It offers powerful APIs and payment solutions for online businesses, supporting billing, fraud prevention, and financial operations. Stripe serves startups to Fortune 500 firms, enabling seamless global commerce and financial services integration.
Block, Inc., formerly known as Square, was founded in 2009 and is headquartered in San Francisco, California. The company offers a range of financial services and products, including payment processing, point-of-sale systems, and peer-to-peer payments. Block focuses on empowering small businesses and individuals through innovative, user-friendly financial technology platforms.
Adyen is a Dutch payment company headquartered in Amsterdam, Netherlands, and was founded in 2006. It provides a single platform for accepting payments globally, across online, mobile, and in-store channels. Adyen serves major global merchants by offering end-to-end payment processing, real-time data insights, and scalable infrastructure tailored to regional and industry-specific needs.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are Visa International Service Association, Worldpay LLC, VeriFone, Inc., Klarna Bank AB, Razorpay Software Private Limited, Payoneer Inc., and others.
Download your free sample report on the global payment gateway market trends to stay ahead in the digital payments space. Get expert insights, data-driven forecasts, and a detailed view of key growth regions and technologies shaping the future of payment gateways. Make informed decisions with trusted research from Expert Market Research.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 40.03 Billion.
The market is projected to grow at a CAGR of 17.90% between 2026 and 2035.
Key strategies include global expansion, adoption of advanced fraud prevention, integration of AI and APIs, localization of payment solutions, regulatory compliance, and partnerships with fintechs to enhance transaction speed and user experience.
North America dominates the market due to the surge in e-commerce and digital transactions.
The major players in the market are PayPal Holdings, Inc., Stripe, Inc., Block, Inc., Adyen, Visa International Service Association, Worldpay LLC, VeriFone, Inc., Klarna Bank AB, Razorpay Software Private Limited, Payoneer Inc., and others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Enterprise Size |
|
| Breakup by End User |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
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| Companies Covered |
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