Payment Bank Solutions Market Size
Payment Bank Solutions Market size was USD 57.7 billion in 2023 and is expected to have a CAGR of more than 13.5% during the period 2024-2032. The demand for rapid payment processing and transfer is one of the major drivers for the growth of the market. Payment banks with their online platforms and effective infrastructure are well equipped to fulfill the requirements. They provide real-time or near-instantaneous payment processing, which diminishes downtime and enhances overall transaction effectiveness, thereby making them the popular option for those in need of swift & reliable financial services.
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Ongoing developments in debit & credit card technologies are driving the payment bank solutions market size. These developments, including contactless payments, advanced security features, and compatibility with digital wallets, are rendering card-based payments smoother & more convenient. Payment banks tend to utilize these technologies to enable customers to access digital payment modes easily, thus driving product uptake and increasing the customer base as consumers are increasingly looking for hassle-free & secure payment modes.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Payment Bank Solutions Market Size in 2023 | USD 57.7 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 13.9% |
| 2032 Value Projection | USD 181 Billion |
| Historical Data for | 2018 - 2023 |
| No. of Pages | 300 |
| Tables, Charts & Figures | 234 |
| Segments covered | Type, End User |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
Payment banks have to conduct their business in a strictly regulated environment, which creates opportunities as well as challenges. Though rules are designed to maintain the stability & security of financial markets, regulation can be complicated, expensive & subject to regular change. Compliance with such regulations, securing requisite licenses, and following strict Anti-Money Laundering (AML) & Know-Your-Customer (KYC) policies can become a heavy administrative & operational burden. Maintaining continuous compliance is paramount but can be expensive and might call for legal talent to manage shifting rule sets.
COVID-19 Impact
The pandemic of COVID-19 benefited the payment bank solutions market in multiple ways. It further increased the adoption rate of digital banking and contactless payment solutions as individuals opted for safer & more convenient mechanisms to handle their money. The growing dependence on digital services and e-commerce platforms fueled the use of payment banks for online transactions and financial management. The height in demand for digital banking services placed payment banks as pivotal in addressing the changing financial needs of businesses and people during & after the pandemic.
Payment Bank Solutions Market Trends
Online transactions made using credit cards, particularly when using payment networks, are driving the payment bank solutions business growth. Online transactions provide ease, convenience, and security and hence are increasing the number of users for payment banks for online payments.
For example, in August 2023, SBI Card and the National Payments Corporation of India (NPCI) signed an agreement to introduce SBI credit cards on the RuPay platform so that SBI card holders can participate in UPI transactions using their RuPay-issued credit cards. Customers need to register their credit cards in third-party UPI apps in order to avail of this facility. This trend is leading to the growing expansion of payment bank solutions in today's financial scenario.
Payment Bank Solutions Market Analysis
Discover more about the dominant segments influencing this market
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By type, the software segment accounted for more than 67% of the market share in 2023. The increased use of payment applications that enable merchants to accept cashless payments is one of the major factors fueling the growth of the software segment. For example, in May 2023, YES BANK launched YES PAY EASY, which is a mobile app aimed at empowering small-scale merchants such as traders, retailers, and professionals by enabling them to accept instant cashless payments from their customers.
This application empowers traders to accept payments through their smartphones, thus providing a series of digital solutions like Bharat QR, Tap-On-Phone, and SMS Pay. This trend is driving the uptake of payment bank software solutions as companies look for effective means of accepting cashless payments, growing their customer base, and remaining competitive in a more digital economy.
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By end user, the retail segment held 34% of the payment bank solutions market share in 2023. Retailers are embracing sophisticated payment solutions to provide smooth and effortless checkout experiences, either in brick-and-mortar stores or online sites. The growing use of e-commerce, contactless payments, and digital wallets has compelled retailers to adopt these technologies to remain competitive and improve customer satisfaction, hence driving the growth of payment bank solutions in the retail segment.
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North America payment bank solutions market was more than 39% of the revenue share in 2023. Advances in technology are a key driver of the market revenue. Technological innovation in mobile banking applications, contactless payment technologies, blockchain, and artificial intelligence increases the efficiency, security, and convenience of digital transactions. These innovations are meeting the needs of digitally savvy consumers and allowing payment banks to offer smooth & innovative financial services. Furthermore, innovations in data analytics and cybersecurity are strengthening trust & compliance, further promoting the uptake of payment bank solutions in North America.
Payment Bank Solutions Market Share
Major companies operating in the payment bank solutions industry are
- EdgeVerve Systems
- MasterCard Incorporated
- Comviva
- Gemalto (Thales Group)
- IBM
- ACI Worldwide
- BPC
- Adyen N.V.
- Authorize.net.
The payment bank solutions industry features intense competition with numerous players offering diverse solutions that leverage data science, AI, and advanced technologies.
Payment Bank Solutions Industry News
- In September 2023, BNY Mellon launched BankifySM, a banking payments solution designed to facilitate organizations in receiving consumer payments from bank accounts. This solution ensures a smooth user experience and assures guaranteed funds for business receivables.
- In April 2023, Infosys Finacle, a part of EdgeVerve Systems and a wholly owned subsidiary of Infosys, announced the successful overhaul of XacBank's technology infrastructure using the Finacle Digital Banking solution suite. This comprehensive suite now drives XacBank's retail & corporate banking operations, thereby establishing a strong digital foundation that aligns with the bank's growth objectives.
The payment bank solutions market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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Market, By Type
- Hardware
- ATM Cards
- Debit Cards
- Forex Cards
- Software
- Platforms
- Mobile Apps
Market, By End User
- Government
- BFSI
- Healthcare
- Retail
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Singapore
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- UAE
- Saudi Arabia
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