Third Party Payment Market Analysis

Based on end user, the market is divided into consumer payments and business payments. In 2022, the consumer payments segment held a market share of around 65% and is expected to grow significantly through 2032. The seamless nature of digital transactions is driving the growth of consumer payments in the third-party payment market. These platforms offer user-friendly interfaces, enabling effortless online and mobile transactions. For instance, in June 2023, Razorpay, a leading fintech unicorn, launched the Turbo UPI, a groundbreaking single-step payment solution for the UPI network. In partnership with the National Payments Corporation of India and the Axis Bank, Razorpay intends to simplify the payment procedure. This innovative solution enables users to make payments directly without redirection to a third-party UPI app, enhancing the payment experience during checkout. By eliminating the complexities associated with traditional banking, users can swiftly and securely make payments, enhancing their overall experience.

Based on industry vertical, the market is categorized into retail, hospitality, e-commerce, healthcare, BFSI, government, travel, and others. In 2022, the retail segment held a market share of 33%. Contactless payments have become a pivotal force in the retail industry. This method allows customers to make secure transactions by simply waving or tapping their contactless-enabled cards, smartphones, or wearables near a compatible reader. In the retail sector, this technology enhances convenience and safety, aligning with evolving consumer preferences. It eliminates the need for physical contact, reduces transaction time, and fosters a seamless shopping experience, making it particularly crucial during times when hygiene and efficiency are paramount.

North America led the global third-party payment market with a major share of around 35% in 2022. Technological advancements have significantly propelled the North America third-party payment market. The region is a hotbed for innovation, witnessing continuous developments in payment technologies. These advancements include secure encryption methods, biometric authentication, blockchain integration, and artificial intelligence applications. Such cutting-edge technologies not only enhance the security of transactions but also improve the speed & efficiency of payment processing. Moreover, the development of user-friendly mobile applications and seamless integration with various platforms have made third-party payment solutions more accessible & appealing to the tech-savvy population, fostering rapid market growth.