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Payment as a Service Market Segmented By Payment as a Service Platform, Professional Services, Managed Services Components in Small and Mid-sized Enterprises, Large Enterprises
The payment as a service market is projected to grow from US$ 7.5 Bn in 2020 to US$ 22 Bn by 2031, at an expected CAGR of 35.7% during the forecast period 2021-2031. Payment-as-a-Service is referred as PaaS. It is a platform, in which third party companies help enterprises accept electronic payments by different payments method.
Credit card, debit card, bank transfer and real-time bank transfer based on online banking are the various payments method accepted by enterprises. SaaS model is used by payment as a Service (PaaS) to streamline the payment for the customer.
As digital payments are increasing day by day, transactions are done through e-wallet, websites, and other applications. The platform is trusted by consumers and sellers as the payment service providers are offering risk-free and secure payment method. There is a rise in e-commerce business, which is further driving the growth of PaaS globally.
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There is an increase in penetration of smartphones, which is proliferating the growth of the sale of goods and services online. Online shopping mobile applications are providing an easy and convenient shopping experience to customers. The rise in demand for easy and convenient shopping experience is shifting towards digital and cashless payments.
The surge in e-commerce business is further driving the growth of payment-as-a-service (PaaS) globally. There is a radical shift from an on premise model to a cloud-based service model, this is one of the major factor driving the growth of PaaS solutions.
For an instance in October 2018, Klarna, Swedish payments startup was funded 20$ million by a fashion retailor company H & M to build an omnichannel payments service. The deal took a place for mobile and online payments, better delivery and return process, and more flexible payment options.
Shoppers are looking for an easy and safe payment method for their purchases, it is giving an opportunity to retailer to adopt innovative technologies. Cloud computing, big data analytics, social networks and digital stores are the latest technologies, used by retail enterprise to increase their presence in the market.
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There is a massive growth in the e-commerce industry, due to which retailers are rapidly moving towards digital payments technology. This will bring more convenient experiences to retailer customers. Recently, Walmart, a largest company in the world, announced that they will enable their customers to pay for goods in-store. A payment provider’s service will be integrate by Walmart, through which customers can withdraw and load money using the PayPal mobile app.
Banks are also identifying that the increase in adoption of payment-as-a-service (PaaS) solutions will create many opportunities for them to provide a trustworthy option for their customers. Banks are investing a good amount of money in new generation of technologies to extend services quickly and update their payments product portfolio.
Banks are working with PaaS players to provide exclusive services, such as payments clearing, card issuing, disbursements, cross-border payments, and e-commerce gateways for their customers. Such trend will help the PaaS market to grow in the forecast period.
The demand for PaaS solutions is anticipated to grow at a significant rate in Asia-Pacific region owing to the increased demand for advancements in payment technologies and integrated payment solutions. There is a rise in penetration of smartphones and internet in the region, which is further driving the growth of PaaS solutions.
Also, there is a significant contribution from countries like Japan, China, Australia, South Korea, and New Zealand for the growth of PaaS solutions. For an instance, a group named as Asian Payments Network (APN) is promoting cross-border banking transactions in the Asia-pacific region.
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North America region has majority of the key vendors of PaaS solutions and services. This is one of the major factor driving the growth of PaaS solutions in the region. There is an increase in adoption of mobile wallets in the region, which is further augmenting the growth of PaaS.
Industries such as retail and bank are continuously adopting PaaS services for secure and real-time transactions. Due to fast internet speed in the region, e-commerce sales are increasing, which is also one of the factor, driving the growth of PaaS solutions in North America.
Some of the leading vendors of payment as a service include
These companies are increasing their market share through strengthening customer relationships, innovation, smart hiring practices, and acquiring competitors.
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The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of the company.
