1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
  4. > Payment Processing

Get to know everything about the different payment options in the industry - key trends explained

  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
0 vote

Global Payment Processing Market Research


Payment processing offers services for transactions completed through debit, credit or gift cards.  The processor generally is a third party providing these services electronically. The process takes place in two phases: authorization (getting approval for the transaction from the issuing bank) and settlement (transferring the funds from the issuing bank to the merchant's account). Apart from these core functions, some payment processors also provide payment fraud detection, business analytics and data security solutions.


The non- cash transactions which the payment processor industry services are a more than a $365 billion business. PayPal Holdings Inc., Chase Paymentech, First Data Corporation, Worldline and Global Collect are some of the payment processors operating in this business.


Key Segments


Payment processors provide various products and technology to meet the changing payment options:


  • Point-of-Sale (POS) payment solutions:  These options allow the merchant to accept credit or debit card payments by having access to card machines and POS systems for use on smart phones, tablets, or other mobile devices to process customer payments.
  • Fraud  security solutions: The service providers also offer a comprehensive set of fraud prevention and data encryption technologies to manage payments and prevent fraud.



Regional Market Shares


North America and Europe are the leading regions in the payment processing business as more than 60% of all global card transactions take place in those regions according to estimates from Capgemini and RBC.


The USA drove growth in North America with the country accounting for more than 35% of the global card transactions.


Europe is a big market and handles about a quarter of global card transactions. The market is somewhat fragmented:  the top ten service providers process less than 60% of European card transactions. Cards themselves represent about 40% of the non-cash transactions (those other than by direct debits or cheque) in this region.


However emerging countries are likely to account for half of the total non-cash market in the medium term, according to estimates from Capgemini and RBC. The growing acceptance of cards at various POS units and consumer preference for cards are likely to increase the use of cards in most of these countries.



Market Outlook


Mobile payments (M-Payments) are becoming a substantial component of non-cash transactions. This growth is likely to drive the industry to $721 billion in the years to come. In the USA, about 50% of digital buyers are expected to make mobile payments for purchases in the near future. This potential rise in m-payments has encouraged many banks to launch their own smartphone and tablet apps as well as dedicated mobile sites. PayPal and Google Wallet are some of the popular mobile payment apps worldwide. Banks with in-house payment processing are investing to seize this growing industry. For instance, The Reserve Bank of Australia is developing a New Payments Platform in collaboration with the industry. This is expected to clear and settle payments including M-payments within a few seconds.


The growing demand from bank card users for quicker, easier and more secure transactions is inducing the payment processors to continuously upgrade their technology. One such entry in the industry is the Near Field Communication (NFC) technology. To make NFC-enabled transactions through smart phones, the user must link his/her bank account or bank card with NFC-supporting applications, such as Visa Contactless Payments. The application will automatically detect the need to make a payment when in close proximity to another NFC device that is structured to receive payments. Once detected the payment is completed when the authentication pin is keyed into the customers phone.  Capgemini expects that  the convenience and security offered by this technology means that more than 36 billionNFC enabled mobile payments will be made globally in the near future.


One of the growing concerns with non-cash payments is the threat of financial fraud. In the USA for instance, card fraud costs more than $8 billion annually. To combat this problem EMV (Europay, MasterCard and Visa) chip technology is the latest trend being adopted as a global standard for credit card and debit card payments. With this technology payment instruments like cards and mobile phones now have embedded microprocessor chips that store and protect cardholder data. This system will help increase security and reduce card fraud. To further encourage this shift, Visa, MasterCard, Discover and American Express have initiated a new system whereby it is imperative for the merchants or card issuing banks to have chip-certified terminals as they may be liable for the cost of counterfeit fraud in case they do not.



List of Top Analysts





You might be interested in these related markets


Understand the Payment Processing Industry Quickly & Get Actionable Data Easily. The Latest Reports with Statistics & Trends from Top Industry Sources
1-10 of about 1 000 reports

Global Payment Processing Markets

  • January 2015
    30 pages
  • Mobile Payment  

    Mobile Money  

    Mobile Wallet  

  • World  

View report >

Payment Processing Markets in the US and China

  • August 2015
    8 pages
  • Payment Process  

  • United States  


View report >

Payment Processing Forecast Statistics in France and Europe

  • January 2013
    11 pages
  • Payment Process  

    Investment Bank  


  • France  


View report >

Payment Processing Markets in Europe and Germany Forecast

  • January 2014
    12 pages
  • Payment Process  

  • Europe  


View report >

The future of the Payment Processing Industry in the UK

  • June 2015
    8 pages
  • Payment Process  

  • United Kingdom  


    United States  

View report >

The future of the Payment Processing Industry in Canada

  • January 2015
    8 pages
  • Payment Process  

  • Canada  

View report >

Payment Processing Markets in Brazil and South America

  • January 2015
    7 pages
  • Payment Process  

  • Brazil  

    South America  

View report >

About 400 reports

Purchase Reports From Reputable Market Research Publishers
(From $ 99 - $ 6 000)

Global CSP Billing 2015 Edition Part 2: Billing Mediation Market Forecast and Market Share Analysis

Global CSP Billing 2015 Edition Part 2: Billing Mediation Market Forecast and Market Share Analysis

  • $ 6 000
  • Industry report
  • July 2015
  • by Frost & Sullivan

Global CSP Billing 2015 Edition Part 2: Billing Mediation Market Forecast and Market Share Analysis This report assesses the billing mediation sector, provides a market share analysis of approximately ...

Africa Mobile Money Market By Transaction Mode, By Natu ...

July 2015 $ 4 650

Company Profiles Of 10 Leading Online Payment Service P ...

July 2015 $ 3 688

Global And Chinese Atm Machine Industry, 2015 Market Re ...

August 2015 $ 3 500

Global Electronic Funds Transfer Point Of Sale (eftpos) ...

August 2015 $ 2 800

Global Mobile Payments Industry Report 2015

July 2015 $ 2 800

Global Online Payment Methods: First Half 2015

July 2015 $ 2 438

Global Mobile Payment Methods: First Half 2015

August 2015 $ 1 188

Europe Online Payment Methods: First Half 2015

August 2015 $ 938

Asia-pacific Online Payment Methods: First Half 2015

August 2015 $ 938

ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - quickly, in one place.