Digital transformation and changing consumer demands are driving the maturation of the global payment as a service market at an expected compound annual growth rate of 16.9% in the next seven years.
That’s according to a new report from Grand View Research that expects that the sector will be worth $25.7bn by 2027.
The researchers attributed the rise to digital disruption in the money transfer ecosystem, combined with the rise in need for quick money transfer methods, has transformed the payment gateway model.
“As a result of digital money transfer methods, consumers now demand secure digital transaction processing systems to transfer money to their merchants and individuals,” Grand View Research said in a statement. “With the rising digital financial transactions, a need for secure cloud-based architecture has increased among platform providers. The cloud-based money transfer platforms allow industry participants to manage higher volumes of transactions at high speed and low cost.”
Looking back, it said that the retail and e-commerce segment held the largest market share in 2019. The company attributed the growth of the segment is attributed to growing trend of online shopping among consumers across the globe.
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