Payment Bank Solutions Market Analysis

Based on type, the software segment held over 67% of the market share in 2023. The proliferation of payment applications designed for merchants to accept cashless payments is a key factor driving the software segment growth. For instance, in May 2023, YES BANK introduced YES PAY EASY, a mobile application designed to empower small-scale merchants including traders, retailers, and professionals by allowing them to accept immediate cashless payments from their clientele.

This app equips merchants to conduct transactions using their mobile phones, thereby offering a range of digital options such as Bharat QR, Tap-On-Phone, and SMS Pay. This trend is propelling the adoption of payment bank software solutions as businesses seek efficient ways to process cashless payments, expand their customer base, and stay competitive in an increasingly digital economy.

Based on end user, the retail segment accounted for 34% of the payment bank solutions market share in 2023. Retailers are adopting advanced payment solutions to offer seamless and convenient checkout experiences, whether in physical stores or online platforms. The rising popularity of e-commerce, contactless payments, and digital wallets has pushed retailers to embrace these technologies to stay competitive and enhance customer satisfaction, thereby fueling the growth of payment bank solutions in the retail sector.

North America payment bank solutions market was over 39% of the revenue share in 2023. Technological advancements play a pivotal role in driving the market revenue. Innovation in mobile banking apps, contactless payment technologies, blockchain, and artificial intelligence enhances the efficiency, security, and convenience of digital transactions. These advancements cater to the preferences of tech-savvy consumers and enable payment banks to provide seamless & innovative financial services. Additionally, advancements in data analytics and cybersecurity are bolstering trust & compliance, further fostering the adoption of payment bank solutions across North America.