The market is expected to grow by over 11% between 2023-2027.

The global payments gateways market is expected to expand by 11.72% over the next five years, with APAC playing a pivotal role in propelling this growth.

APAC’s regional market is estimated to witness a growth of 30% during the period thanks to the increasing adoption of digital payments, according to a report by market research company Technavio.

Consumers in sectors such as e-commerce and BFSI, for example, are utilizing payment gateway solutions integrated in online platforms for more secure online transactions. They are also now using hardware devices like smartphones and PoS systems for more security.

Amongst markets, India and Japan lead in APAC, particularly in the UPI industry.

The shift towards a cashless economy has also accelerated, Technavio noted.

“Amidst the pandemic, the shift towards a cashless economy has accelerated, with platforms like Flipkart-owned PhonePe and Worldline facilitating digital payments through bank apps, mobile-based apps, and internet banking,” the report said.

This growth of the cashless economy, alongside lingering effect of the COVID-19 pandemic, has helped the market for payment gateways to experience significant expansion.

Despite these benefits, financial losses and business interruptions due to cyberattacks remain a concern, Technavio warned.

“As consumers continue to incline towards online payments, payment processing companies must prioritize security and customer relationships to maintain trust and build a cashless economy,” it said.