Industry
From U.S. (Toll Free) : +16467917070    |   UK : +442030260021     |    sales@businessmarketinsights.com

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)

Report Code :  TIPRE00026060
No. of Pages :  189
Published Month :  Dec 2021
Category :  Banking, Financial Services, and Insurance
$299 per month

Best Plan
  • All Reports in One Industry
  • All Reports Read Access
  • Subscription Duration : 12 Months
  • Monthly New Reports Added
  • $1200 Yearly Saving

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


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.
  1. Adyen
  2. Amazoncom, Inc.
  3. Apexx Fintech Limited
  4. Bluesnap Inc.
  5. Ecommpay
  6. Mypos World Ltd
  7. Paytabs
  8. STRIPE
  9. TOMATO PAY
  10. WEPAY, INC
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the Europe and MEA Payment Gateway Market
  • Highlights key business priorities in order to assist companies to realign their business strategies
  • The key findings and recommendations highlight crucial progressive industry trends in the Payment Gateway Market, thereby allowing players across the value chain to develop effective long-term strategies
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
  • Scrutinize in-depth regional market trends and outlook coupled with the factors driving the market, as well as those hindering it
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution