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Payment Processing Solutions Market Trends

Report ID: GMI3597
Published Date: Aug 2024
Report Format: PDF

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Payment Processing Solutions Market Trends

The payment processing solutions industry is experiencing rapid evolution, driven by several unique trends. One significant development is the surge in contactless payment methods. This trend is fueled by the increasing adoption of Near Field Communication (NFC) technology and the growing preference for touchless transactions, particularly following the COVID-19 pandemic.

For instance, in July 2024, Paytm introduced the NFC Card Soundbox, a two-in-one device that merges mobile QR payments with NFC card technology. This device, developed by One 97 Communications Limited, is designed to facilitate transactions for small merchants. Through this, customers can tap their debit or credit cards or scan a QR code.

Another notable trend is the integration of artificial intelligence (AI) and machine learning (ML) in payment processing solutions. Additionally, companies are leveraging AI and ML to enhance fraud detection and prevention, ensuring secure and seamless transactions. For instance, in February 2024, Mastercard launched Decision Intelligence Pro, a Gen AI-powered transaction risk assessment tool that assesses the relationships between multiple entities surrounding a particular transaction. This tool builds on the existing Decisions Intelligence (DI) tool, a real-time decision-making solution that helps banks score and approve over 143 billion transactions annually.

Moreover, cryptocurrency payments are gaining traction as a unique segment within the Payment Processing Solutions landscape. Furthermore, major players have started supporting cryptocurrency transactions, allowing users to buy, sell, and hold digital currencies. This shift is expected to reshape market dynamics. For instance, in July 2024, global payment orchestration platform FinMont announced a partnership with BitPay, the largest provider of Bitcoin and cryptocurrency payment services. This strategic partnership will integrate cryptocurrency into the FinMont payment ecosystem, enabling merchants to utilize payments from various cryptocurrencies.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of payment processing solutions reached USD 61.1 billion in 2023 and is set to register 10.5% CAGR from 2024 to 2032, owing to the rise in e-commerce and digital transactions worldwide.

Payment processing solutions industry from the Near Field Communication (NFC) technology segment held over 42% share in 2023, due to enabling seamless and secure contactless transactions in payment processing solutions.

North America market held 44% share in 2023, attributed to high adoption rate of contactless payments, driven by widespread NFC technology and consumer preference for convenience in the region.

ACI WORLDWIDE, Adyen, Alipay, Alphabet (Google Pay), Amazon Payments, Inc., Apple Inc. (Apple Pay), Authorize.Net., FIS, Fiserv, GLOBAL PAYMENTS, MASTERCARD, PayPal Holdings Inc., and Square, are some of the major payment processing solutions companies worldwide.