The global payment processing solutions market size is expected to reach USD 98.01 billion by 2027, registering a CAGR of 14.5% from 2020 to 2027, according to a new report by Grand View Research, Inc. The market growth can be attributed to the emergence of digital technology and customers’ demand for immediacy of transactions. The customers are looking for faster and convenient money transfer options, thereby driving the adoption of payment processing solutions.
Technologies such as the Internet of Things (IoT), machine learning, and Artificial Intelligence (AI) are all finding their way into numerous industries in order to streamline and simplify process of transactions. Machine learning can automatically recognize patterns across large volumes of transactions to quickly identify fraudulent activities. Moreover, artificial intelligence offers the ability to personalize the customer experience and enhance customer service.
Machine learning integrated processing solutions are used for the authorization of money transfer patterns and transaction monitoring. Machine learning tools enable FinTech companies to accurately process this data to decrease costs, meet customer needs, and better allocate resources. Furthermore, these solutions allow businesses to provide better customer services to their customers.
Service providers are focusing on leveraging IoT into their payment processing solutions. They enable money transfer through connected voice assistants and smart TVs. These services are allowing customers to pay when, where, and how they want to pay.
Further key findings from the report suggest:
- Growing popularity of smartphones and technological innovations are anticipated to boost the usage of e-wallets across the globe
- As retailers are focusing on diversifying their business operations, they are increasingly embracing wireless and mobile processing technologies for transaction processes. This, in turn, is expected to fuel the adoption of solutions for transaction processing in the retail end-use segment
- Increasing e-commerce sales, coupled with growing internet penetration across the region, is expected to fuel the market growth in Asia Pacific over the forecast period
- Key vendors in the market include SecurePay; PayU Group; PayPal Holdings, Inc.; Authorize.Net; and Alipay.