Report : Europe and MEA Payment Gateway Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Online and POS/Traditional), Business Model (Payment Facilitator, Acquirer, and ISO Model), Enterprise Size (Large Enterprises, and Small and Medium Enterprises), and End User (BFSI, Media and Entertainment, Consumer goods, Retail and E-commerce, Travel and Hospitality, and Others)
Rise in IoT and AI-Based Automated Cashless Transactions to Provide Growth Opportunities for Europe and MEA Payment Gateway Market during 2021–2028
According to our latest market study on “Europe and MEA Payment Gateway Market Forecast to 2028 – COVID-19 Impact and Regional Analysis (Europe and MEA)– by Type, Business Model, Enterprise Size, and End User,” the market is expected to grow from US$ 7,499.32 million in 2021 to US$ 20,697.69 million by 2028; and is estimated to grow at a CAGR of 15.9% from 2022 to 2028.
With the advent of the COVID-19 pandemic, business started reformulating their strategies around key priorities such as employees’ health protection, business continuity, and cost reductions to manage its immediate impacts. The “new” normal is anticipated to trigger some major changes in the companies’ sales strategies, product ranges, and the operational capabilities. The switch to cashless transactions has been a noteworthy transition in the past several months. The automated cashless payment gateway industry was already growing significantly in Europe before the pandemic; however, digital purchases accounted for a small share in Germany, Austria, Italy, and Switzerland, among others. The COVID-19 pandemic has served as an accelerator to boost the otherwise slow and complex process of transformation of payment habits. Consumers and retailers have suddenly realized the risks of handling cash, which resulted in decline in ATM cash withdrawals and highlighted the need for contactless payment. This has further propelled the demands for integration of IoT and AI technologies in automated payment systems. France’s national strategy for payment instruments has asked the National Cashless Payments Committee (CNPS) to modernize cashless payment by facilitating card payments, instant payments solutions, mobile payments, and electronic invoicing, which is anticipated to provide lucrative growth opportunities for the payment gateway market players in the Middle East and Europe during the forecast period.
Based on type, the payment gateway market is bifurcated into online and POS/traditional. The market for the online segment was valued at US$ 4,553.28 million in 2020. Similarly, based on business model, the market is segmented into payment facilitator, acquirer, and ISO model. Based on enterprise size, the payment gateway market is bifurcated into large enterprises, and small and medium enterprises. Based on end-user, the market is segmented into BFSI, media and entertainment, consumer goods, retail and e-commerce, travel and hospitality, and others.
Impact of COVID-19 Pandemic on Europe and MEA Payment Gateway Market
The COVID-19 pandemic has positively impacted the payment gateway market in EU and the Middle East by accelerating the move from physical to virtual banking. The pandemic brought significant changes in consumers’ shopping behavior as many of them turned to online shopping. This also led to lower differences in purchasing behaviors among various geographies. As a result, there has been a surge in electronic peer-to-peer and consumer-to-business payments in Europe and the Middle East. According to industry experts, Switzerland reported an increase in the share of debit-card spending from 65% in January to 72% in May 2020. ATM withdrawals declined by 46% in the UK from March to July 2020. The pandemic has catalyzed new trends in the payments sector, such as supply chain restructuring and cross-border commerce. Thus, a rapid shift toward e-commerce, contactless digital transactions, quick payments, and cash displacement is strengthening the payment gateway market growth in Europe and the Middle East. Vodafone, a mobile operator, witnessed a 50% increase in its European data traffic during the pandemic. In 2021, while several industries are struggling to recover from the COVID-19 crisis, the payment processing market is moving forward with major deals and acquisitions. For instance, Worldline, a French payments firm, created the largest merchant acquirer and payments processor in Europe by completing the acquisition of Ingenico, which was valued at US$ 8.6 billion. Nexi, Italy, acquired a fintech rival SIA SpA for US$ 5.3 billion with an ambitious goal of becoming Europe’s biggest payment provider. Further, Stripe raised US$ 95 billion in funding in 2020, which enabled it to grow almost threefold in the year.
Adyen; Amazoncom, Inc.; Apexx Fintech Limited; Bluesnap Inc.; Ecommpay; Mypos World Ltd; and Paytabs are a few major companies operating in the Europe and MEA payment gateway market.
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