Global Online Payment Gateway Market Size, Forecast, and Trend Highlights Over 2025-2037
Online Payment Gateway Market size was valued at USD 57.3 billion in 2024 and is likely to cross USD 340.1 billion by 2037, expanding at more than 16% CAGR during the forecast period, i.e., between 2025-2037. In 2025, the industry size of online payment gateway is assessed at USD 66.4 billion.
According to the World Bank Group’s Global Findex Database 2021, 76% of the global population and 71% of the population in developing countries held account ownership worldwide. The market has become a vital part of the global digital economy in recent years, driven by the rapid growth of e-commerce, mobile banking, and contactless payment methods. These gateways act as the bridge between businesses and financial institutions, ensuring secure and efficient transactions. With the increasing preference for cashless transactions, businesses across sectors are integrating payment gateways to offer seamless checkout experiences.
The World Bank Group further stated that in 2021, over 40% of adults in low and middle-income economies, excluding China, made merchant in-store or online payments using a card, phone, or the internet for the first time since the start of the pandemic. The rise in digital transformation, with a surge in internet and smartphone penetration, has further accelerated the adoption of online payment gateways. For instance, according to IBEF August 2024, India’s smartphone market showcased a 7.2% YoY growth during 2024’s first half. As per IDC Worldwide Quarterly Mobile Phone Tracker 2024, the second quarter of CY24 witnessed 35 million smartphone shipments, noting a 3.2% YoY growth.
Privileged Access Management Sector: Growth Drivers and Challenges
Growth Drivers
- E-commerce expansion: The global boom of online shopping has significantly accelerated the need for reliable and secure payment gateways. Moreover, with the rise of mobile commerce and social media shopping, gateways are being optimized for multiple platforms and devices, ensuring convenience and accessibility for users across demographics. Online payment gateways serve as the backbone of this ecosystem by enabling fast, encrypted, and real-time transactions. This growing dependence on digital retail continues to push the demand for advanced, callable, and user-friendly payment solutions.
- Rise in Fintech: The emergence of financial technology startup companies has revolutionized the payment landscape by introducing innovative financial technologies such as BuyNow, Pay Later (BNPL), digital wallets, one-click checkouts, and real-time settlements, to enhance transaction speed, flexibility, and user experience. For instance, in January 2025, MobiKwik partnered with the RBI and Yes Bank, and launched a complete version of India’s Central Bank Digital Currency, e-rupee (e₹). Such innovations compelled traditional players to modernize their services, leading to a healthy competition and continuous improvement in the market.
Challenge
- Security and fraud risks: One of the major challenges in the market is ensuring robust security against cyber threats and fraudulent activities. With the rising number of digital transactions, attempts at phishing, data breaches, and unauthorised access are also increasing. Balancing strong security with seamless user experience remains a complex task, especially in a rapidly evolving digital landscape.
Online Payment Gateway Market: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
16% |
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Base Year Market Size (2024) |
USD 57.3 billion |
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Forecast Year Market Size (2037) |
USD 340.1 billion |
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Regional Scope |
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Online Payment Gateway Segmentation
Sector Type (Banking, Financial Services, Retail, Telecommunications, Healthcare, Others)
Based on sector, the retail segment in online payment gateway market is anticipated to register a considerable share by the end of 2037, owing to the explosive growth of e-commerce and evolving consumer buying behaviours. With increasing demand for online buying, both brick-and-mortar retailers and digital-first brands are integrating payment gateways to offer smooth, secure, and fast checkout experiences. The need to support various payment methods, including cards, wallets, and UPI, makes payment gateways essential in driving customer satisfaction and repeat purchases in the retail space.
Application Type (Small Enterprises, Medium Enterprises, Large Enterprises)
Based on application, large enterprises segment in online payment gateway market are projected to witness significant growth during the forecast period as they require scalable and secure payment gateway solutions to handle high transaction volumes across global markets. These businesses often operate across multiple regions and platforms, making it crucial to integrate advanced payment technologies that support multi-currency processing, fraud detection, and compliance. With greater resources and higher stakes, large enterprises invest heavily in customizing their payment infrastructure to enhance customer trust and operational efficiency.
Our in-depth analysis of the global online payment gateway market includes the following segments:
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Sector Type |
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Product Type |
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Application Type |
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Vishnu Nair
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Privileged Access Management Industry - Regional Synopsis
North America Market Statistics
North America online payment gateway market is anticipated to experience significant growth by 2037, driven by widespread adoption of digital payments and advanced technological infrastructure, and the increasing preference for cashless transactions among consumers and businesses. In November 2022, Opn from Japan announced the acquisition of MerchantE and entered the U.S market. The industry is projected to continue its upward trajectory with hosted payment gateways and innovations in fraud prevention and user experience contributing to sustained growth.
The U.S. market is supported highly by a digital consumer base and a booming e-commerce industry. Furthermore, the country’s businesses and consumers demand faster and instant payment services, boosting the market growth further. For instance, according to a survey conducted by Federal Reserve Financial Services, in May 2024, digital wallet usage witnessed noteworthy growth in 2023, with efficiency-focused businesses increasing the usage by 31% and convenience-minded consumers experiencing an increase of 32%.
Asia Pacific Market Analysis
APAC online payment gateway market is experiencing notable expansion and is projected to register the fastest growth during the forecast period. Countries including China, Japan, India, and South Korea are at the forefront with industries and customers embracing online transactions. Additionally, supportive government initiatives and investments in fintech innovations are fostering a conducive environment for the expansion of digital payment infrastructures.
India market is propelled by the government’s Digital India movement and a booming e-commerce landscape. The introduction of Unified Payments Interface (UPI) has revolutionized the payment ecosystem, offering a unified platform for multiple bank accounts and fostering interoperability among banks. According to the Press Information Bureau, Government of India, Ministry of Finance, in January 2025, announced that UPIs recorded a hit of 16.73 billion transactions in December 2024.
Companies Dominating the Online Payment Gateway Landscape
- PayPal
- Company Overview
- Key Product Offerings
- Business Strategy
- SWOT Analysis
- Financials
- Amazon
- Avangate
- Stripe
- AsiaPay
- Dwolla
- Pagosonline
- MyGate
- CCBill
- MercadoPago
Companies dominating the market adopt several key strategies to maintain their lead. This includes investing heavily in robust security infrastructure to build trust and ensure safe transactions. Seamless user experience is prioritized through intuitive interfaces and quick payment processing. Furthermore, they also often form strategic partnerships with banks, e-commerce platforms, and fintech firms to expand their reach. Continuous innovation, such as integrating AI for fraud detection and introducing flexible payment options, also plays a crucial role in retaining the market.
Recent Developments
- In August 2024, PhonePe Payment Gateway launched PhonePe PG Bolt and offers the fastest in-app payment experience to customers with a 99% success rate.
- In August 2024, Ayden announced its expansion in India to operate as an Online Payment Aggregator in India for domestic and cross-border payments.
- In August 2024, Zoho Corporation announced entry into the payments sector with the launch of Zoho Payments, which is a unified payment solution to help businesses accept money online from their customers.
Author Credits: Preeti Wani
- Report ID: 846
- Published Date: May 13, 2025
- Report Format: PDF, PPT
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