Europe and MEA Payment Gateway Market Forecast to 2028 - By Size, Share, Growth by End User and Forecast| Business Market Insights

The Europe and MEA Payment Gateway Market is expected to grow from US$ 7,499.32 million in 2021 to US$ 20,697.69 million by 2028; it is estimated to grow at a CAGR of 15.9% from 2022 to 2028.

The payment gateway industry has recorded robust growth in the Middle East and Africa, with new providers and platforms being launched at a rapid pace. Vendors in the Middle East and Africa payment gateway market are focusing on extending their product and service portfolio in untapped segments. For instance, in October 2020, Stripe acquired Paystack, an online payment processing company in Nigeria, to expand its presence across South Africa. The Middle East and Africa is expected to hold a significant position in the payment gateway industry due to their growing investments in strengthening logistics networks infrastructures. With rapidly changing technology landscape, consumers are demanding convenient digital payments methods, especially those simplifying the payment acceptance for merchants, thereby completing transactions with greater efficiency. Innovation such as open banking infrastructure, regulatory norms, and establishments of standards for payments and data transmission are estimated to propel the Middle East and African payment gateway market. The expansion of a digital economy will further promote e-commerce and digital payments and boost the demands for simplified omni-commerce payment systems and technologies. Along with the rising mobile phone penetration, many countries in MENA are accepting real-time payment technologies due to the benefits they offer. Governments in the Middle Eastern countries are actively working to encourage consumers to choose cashless transaction methods. A digital wallet app, STC Pay, has been launched recently in Saudi Arabia, which allows people to make digital payments in restaurants and stores.

Strategic Insights

Impact of COVID-19 Pandemic on Europe and MEA Payment gateway Market

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 COVID-19 pandemic. When 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 funding in 2020, which enabled it to grow almost threefold in the year.

Europe and MEA Payment Gateway Market Insights

Growing Use of Mobile Banking and Digital Wallet Services to Drive Europe and MEA Payment gateway Market Growth in Future

The digital payment industry has recorded robust growth in Europe, and the Middle East and Africa with the launch of new platforms and tools. The rapidly changing digital payment landscape is fueling the adoption of mobile banking channels and digital wallets. Stores are rapidly adopting digital payment applications such as PayPal, Samsung Pay, Apple Pay, and Google Pay to accept payments. Further, the proliferation of smartphones and increasing investments by internet service providers are propelling the use of digital wallets in Europe, and the Middle East and Africa. Growing cash transactions in countries in the Middle East is further leading to the promotion of mobile banking channels and digital wallets. The UAE has observed a boom in the number of mobile payment services in recent years. A mobile operator, Etisalat offers Etisalat Wallet, while Emirates NBD bank offers NBD Pay, a mobile contactless payment service based on near-field communication (NFC). The concentration of wealth in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE is a significant factor fueling the adoption of digital payments in these countries. Further, a rise in the number of active customers has encouraged mobile money providers to have significant establishments in the Middle East. MasterCard’s recent survey indicates the growth of digital payment services in the Middle East, with more consumers willing to use mobile phones to make payments. In September 2019, inwi, a Moroccan telecom operator, launched its mobile money service named inwi money facilitates convenient and secure financial transactions.

Type-Based Market Insights

Based on type, the Europe and MEA payment gateway market is bifurcated into online and POS/traditional. The online segment dominates the market, as maximum number of products are integrated to form the system. On other hand, the emergence of smart parking technology, such as IoT integrations, is expected to boost demand for the POS/traditional integration in the APS. The online segment led the Europe and MEA payment gateway market with a share of 69.8% in 2021. It is expected to account for 76.4% of the total market by 2028.

Europe and MEA Payment Gateway Market, by Type – 2021 and 2028

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Europe and MEA Payment Gateway Strategic Insights
Strategic insights for the Europe and MEA Payment Gateway provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

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Europe and MEA Payment Gateway Report Scope

Report Attribute	Details
Market size in 2021	US$ 7,499.32 Million
Market Size by 2028	US$ 20,697.69 Million
Global CAGR (2022 - 2028)	15.9%
Historical Data	2019-2020
Forecast period	2022-2028
Segments Covered	By Type Online POS/Traditional By Business Model Payment Facilitator Acquirer ISO Model By Enterprise Size Large Enterprises Small Medium Enterprises By End User BFSI Media and Entertainment Consumer goods Retail and E-commerce Travel and Hospitality
Regions and Countries Covered	Europe UK Germany France Russia Italy Rest of Europe Middle East and Africa South Africa Saudi Arabia UAE Rest of Middle East and Africa
Market leaders and key company profiles	Adyen Amazoncom, Inc. Apexx Fintech Limited Bluesnap Inc. Ecommpay Mypos World Ltd Paytabs STRIPE TOMATO PAY WEPAY, INC

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Europe and MEA Payment Gateway Regional Insights

The geographic scope of the Europe and MEA Payment Gateway refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

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Business Model-Based Market Insights

Based on business model, the Europe and MEA payment gateway market is segmented into payment facilitator, acquirer, and ISO model. The payment facilitator segment is dominating the market as users are preferring the system having maximum parking space and less operating cost. However, the ISO model system is attracting the BFSI sector to utilize the available parking space with low investment. The payment facilitator segment led the Europe and MEA payment gateway market with a share of 43.1% in 2021. Further, it is expected to hold 39.1% share by 2028.

Various market initiatives are adopted by the companies to expand their footprint across the world and meet the growing demand by their customers. The market players in the payment gateway market are mainly focusing on development of advanced and efficient products. Signing of partnerships, contracts, and joint ventures; funding; expansion; and inaugurating new offices across the world permit the company maintain its brand name globally. Most of the market initiative were observed in North America, Europe, Middle East and Africa, and Asia Pacific.

In November 2021, Amazon.com Inc. infused approx. US$130 million in Amazon Pay, the digital payments and financial services unit of Amazon India, amid an intensifying battle with Walmart-owned Flipkart in India’s booming online retail market. In September 2021, Amazon Pay hit 50 million users in India, leveraging unified payments interface (UPI) on its platform. The company aims to serve millions of customers and merchants through UPI and play a key role in accelerating the government’s vision of a less-cash India.
In October 2021, Stripe announced that it has entered into an agreement to acquire Recko, a leading provider of payments reconciliation software for internet businesses. Recko joins Stripe’s integrated suite of products that helps users optimize growth and efficiently manage revenue. The addition of Recko will provide businesses on Stripe a comprehensive way to track their financial health.

The Europe and MEA payment gateway market is segmented on the basis of type, business model, enterprise size, end user, and geography. Based on type, the market is bifurcated into online and POS/traditional. By business model, the payment gateway market is segmented into the ISO model, payment facilitator, and acquirer. Based on enterprise size, the market is bifurcated into large enterprises, and small and medium enterprises. Based on end user, the Europe and MEA payment gateway market is segmented into BFSI, media and entertainment, consumer goods, retail and e-commerce, travel and hospitality, and others.

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