Europe Payment Gateway Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 9.21 Billion |
| Market Size (2029) | USD 24.91 Billion |
| CAGR (2024 - 2029) | 22.02 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Payment Gateway Market Analysis
The Europe Payment Gateway Market size is estimated at USD 9.21 billion in 2024, and is expected to reach USD 24.91 billion by 2029, growing at a CAGR of 22.02% during the forecast period (2024-2029).
- The European payment gateway market is witnessing rapid growth, fueled by the rising adoption of digital payment solutions, the booming e-commerce sector, and robust regulatory backing. Payment gateways serve as the bridge for secure transactions between customers and merchants, underscoring their pivotal role in the digital economy. Given Europe's advanced digitization and well-established financial services, the appetite for seamless and secure payment processing is pronounced.
- The increasing e-commerce activity in Europe stands as a primary catalyst for the payment gateway market's expansion. As online shopping gains traction among consumers, the clamor for secure, swift, and user-friendly payment solutions intensifies. Payment gateways, by enabling efficient transaction processing for e-commerce platforms, have cemented their status as cornerstones of the online retail ecosystem.
- The accelerated shift from cash to digital payments, a trend magnified by the COVID-19 pandemic, has spurred a heightened demand for robust payment gateway services. With consumers increasingly gravitating towards mobile payments, digital wallets, and contactless transactions, the reliance on secure payment gateways for transaction processing has never been more critical.
- Regulatory frameworks, notably the EU’s Payment Services Directive 2 (PSD2) and the General Data Protection Regulation (GDPR), are acting as catalysts for the growth of payment gateways. PSD2 stands out, championing open banking and thereby spurring innovation in the payment sector, which in turn opens new avenues for gateway providers.
- Technological advancements in artificial intelligence, blockchain, and cybersecurity are redefining the landscape of payment gateways. These innovations not only bolster security and efficiency in payment processing but also mitigate fraud risks and elevate customer experiences, thereby amplifying adoption across diverse industries.
- However, the very regulations that spur innovation also pose challenges for payment gateway providers. Navigating the intricate maze of compliance with regulations like PSD2 and GDPR, especially across Europe's varied nations, demands significant time and financial investment. The stakes are high: non-compliance can lead to substantial fines and operational disruptions, potentially deterring new market entrants.
Europe Payment Gateway Market Trends
Growing Adoption of Payment Gateways in Retail to drive the Market
- As European retailers increasingly pivot to online platforms, the demand for efficient and secure payment gateways has surged. With a notable shift in consumer preferences from physical stores to e-commerce, retailers now require seamless payment solutions to manage the heightened volume of online transactions. By integrating with e-commerce platforms, payment gateways ensure these transactions are both secure and swift.
- Many retailers are adopting omnichannel strategies, blending online and offline experiences to meet consumer demand. Payment gateways play a crucial role in enabling secure and consistent payment experiences across these channels. Whether a consumer is shopping online, in-store, or through a mobile app, payment gateways ensure a unified and seamless transaction process, promoting their widespread use in retail.
- For instance, in May 2024 - Nexi, an Italian bank specializing in payment systems like Nexi Payments, announced a strategic collaboration with Shopreme, an Austria-based software company. This partnership aims to integrate Shopreme's self-checkout solutions into Nexi's merchant propositions. As Europe shifts from cash to digital payments, there's a noticeable tilt in consumer preferences towards more convenient and innovative shopping journeys. This evolution is driving a heightened demand for self-service solutions, including self-checkout options and mobile checkout technologies. These trends span various retail verticals, from grocery and fashion to home design, travel retail, and beauty/wellness.
- Security remains a paramount concern for both retailers and consumers in the realm of digital transactions. Advanced payment gateways counter these concerns with robust fraud detection, encryption, and tokenization technologies, fortifying transaction security. As a result, retailers not only bolster consumer trust but also mitigate fraud risks, further fueling the integration of payment gateways into their systems.
- The retail sector in the region is experiencing consistent growth. For instance, in 2023, the total retail trade sales volume index in the European Union reached approximately 114, as reported by OECD (The Organisation for Economic Co-operation and Development), an intergovernmental organization comprising 38 member countries dedicated to fostering economic progress and global trade. Retail trade encompasses the sale of consumer goods, both new and used, intended for personal or household consumption. This includes transactions in specialized stores, secondhand goods outlets, and non-store locations.
United Kingdom is Expected to Hold a Major Share of the Market
- The United Kingdom stands as one of Europe's foremost e-commerce hubs, boasting a robust online retail landscape. The widespread adoption of online shopping in the country fuels the demand for payment gateways, ensuring transactions are both secure and seamless. With UK consumers increasingly leaning into digital shopping, retailers are swiftly adopting sophisticated payment gateway solutions, solidifying the UK's pivotal role in the market.
- For instance, data from the Office for National Statistics (UK) reveals that in March 2024, online sales accounted for 26% of total retail sales in textile products, clothing, and footwear in Great Britain. This figure, while significant, pales in comparison to the peak of approximately 65% reached in February 2021.
- The United Kingdom boasts a robust digital payment ecosystem characterized by the widespread use of digital wallets, mobile payments, and contactless transactions. Payment gateways that accommodate these advanced methods are essential for both online and in-store transactions. The UK's advanced infrastructure not only supports but also accelerates the adoption of state-of-the-art payment gateway technologies, solidifying the nation's substantial market share.
- London stands out as a premier global fintech hub, driving innovation in digital payments and broader financial services. This vibrant fintech landscape in the UK draws considerable investments into payment gateway solutions. Furthermore, ongoing advancements in payment technologies, coupled with strategic partnerships between fintech firms and retailers, bolster the UK's dominance in the payment gateway arena.
- For instance, in July 2024 - London-based venture capital firm 13books Capital unveiled a GBP 121 million (~USD 150 million) fund dedicated to investing in FinTech startups. Targeting companies from seed to Series A stages, the fund's investments will range between GBP 1 million and GBP 7 million (~USD 1.25 million to USD 8.7 million). With backing from investors such as British Patient Capital and KfW Germany, the fund is poised to champion the next wave of FinTech innovation across Europe. In the last six months, the firm has already invested in five promising companies, including Aria and Ramify.
Europe Payment Gateway Industry Overview
Payment gateways serve as intermediaries between e-commerce platforms and banks, facilitating secure payment transactions. Handing sensitive data like bank account details and credit cards, these gateways prioritize protection against fraud. Utilizing the HTTP protocol, payment gateways ensure secure order submissions, safeguarding personal information. They provide benefits like user-friendly interfaces, efficient expense and loss management, and time-saving solutions.
In Europe, the payment gateway market is largely fueled by the growing adoption of mobile wallets and advancements in mobile payment technologies. The integration of near-field communications (NFC), artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) has streamlined bill payments, diminishing the need for physical cards. Europe's robust retail e-commerce sector, bolstered by a significant online shopping populace, has further propelled the market. The ability of payment gateways to facilitate transactions for customers, brick-and-mortar stores, and online retailers—while ensuring the security of sensitive data—underscores the market's positive trajectory.
The Europe Payment Gateway Market is fragmented, with major players like WorldPay, PayPal, etc. Players are adopting strategies like acquisitions and partnerships to improve their product offerings and gain sustainable competitive advantage.
Europe Payment Gateway Market Leaders
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VERIFONE, INC.
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Amazon Payments, Inc.
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PayPal Holdings, Inc.
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WorldPay
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Stripe
*Disclaimer: Major Players sorted in no particular order
Europe Payment Gateway Market News
- September 2024: In early 2025, Visa is set to unveil its "open system" initiative, Visa A2A, aimed at enhancing consumer control and protection in account-to-account (A2A) payments. Slated for a debut in the UK, Visa A2A promises an upgraded digital user experience, bolstered security measures, and a user-friendly dispute resolution service, ensuring consumers can reclaim their funds in case of any mishaps.
- July 2024: In Germany, the European Payments Initiative (EPI) unveiled Wero, a new digital payment wallet. This launch was a joint effort with founding partners DSGV and DZ BANK, and Deutsche Bank is slated to come on board later this year. With this service, German customers can seamlessly execute instant, account-to-account money transfers directly via their banking apps.
Europe Payment Gateway Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Atrractivness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers?
- 4.2.2 Bargaining Power of Consumers?
- 4.2.3 Threat of New Entrants?
- 4.2.4 Threat of Substitutes?
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Regulatory Landscape Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increased E-commerce Sales and High Internet Penetration Rate
- 5.1.2 Increased Demand for Mobile-based Payments
- 5.1.3 Growing Adoption of Payment Gateways in Retail
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5.2 Market Restraints
- 5.2.1 Privacy and Security-related Threats Continue to Remain a Concern
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Hosted
- 6.1.2 Non-Hosted
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6.2 By Enterprise
- 6.2.1 Small and Medium Enterprise (SME)
- 6.2.2 Large Enterprise
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6.3 By End-User
- 6.3.1 Travel
- 6.3.2 Retail
- 6.3.3 BFSI
- 6.3.4 Media and Entertainment
- 6.3.5 Other End-users
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6.4 By Geography
- 6.4.1 United Kingdom
- 6.4.2 Germany
- 6.4.3 France
- 6.4.4 Italy
- 6.4.5 Rest of Europe
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 VERIFONE, INC.
- 7.1.2 Amazon Payments, Inc.
- 7.1.3 PayPal Holdings, Inc.
- 7.1.4 WIRECARD
- 7.1.5 WorldPay
- 7.1.6 BitPay Inc.
- 7.1.7 WePay Inc.
- 7.1.8 AUTHORIZE.NET.
- 7.1.9 VISA
- 7.1.10 Stripe
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE MARKET OUTLOOK
** Subject To AvailablityEurope Payment Gateway Industry Segmentation
Payment gateways play a crucial role in facilitating both online and in-store transactions. They enable customers to input their payment details, ensuring this information is securely relayed to the relevant parties for transaction authentication and authorization.
Europe Payment Gateway Market Report is segmented by type (hosted, non-hosted), enterprise (small and medium enterprise, large enterprise), end-user verticals (travel, retail, BFSI, media and entertainment, other end-user verticals), geography (United Kingdom, Germany, France, Italy, Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above.
| By Type | Hosted |
| Non-Hosted | |
| By Enterprise | Small and Medium Enterprise (SME) |
| Large Enterprise | |
| By End-User | Travel |
| Retail | |
| BFSI | |
| Media and Entertainment | |
| Other End-users | |
| By Geography | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Rest of Europe |
Europe Payment Gateway Market Research FAQs
How big is the Europe Payment Gateway Market?
The Europe Payment Gateway Market size is expected to reach USD 9.21 billion in 2024 and grow at a CAGR of 22.02% to reach USD 24.91 billion by 2029.
What is the current Europe Payment Gateway Market size?
In 2024, the Europe Payment Gateway Market size is expected to reach USD 9.21 billion.
Who are the key players in Europe Payment Gateway Market?
VERIFONE, INC., Amazon Payments, Inc., PayPal Holdings, Inc., WorldPay and Stripe are the major companies operating in the Europe Payment Gateway Market.
What years does this Europe Payment Gateway Market cover, and what was the market size in 2023?
In 2023, the Europe Payment Gateway Market size was estimated at USD 7.18 billion. The report covers the Europe Payment Gateway Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Payment Gateway Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Payment Gateway Industry Report
Statistics for the 2024 Europe Payment Gateway market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Payment Gateway analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
