Covid19 Impact and Market Status
Although adversely affecting the global economy and giving a setback to several businesses, the Covid19 pandemic paved the growth of the global merchant services market. The concern of virus transmission through cash led to the adoption of cashless transactions by a huge number of businesses. The lack of liquid cash during times of emergency maximized the demand for use of different payment methods to satisfy necessary needs including medicines. The pandemic immensely boosted the eCommerce segment as the customers shifted to online shopping due to the lockdown and restrictions imposed thus expanding the global merchant services market.
Merchant Services market is expected to grow from its 2022 valuation of USD 2.1 billion to USD 3.2 billion by 2030, with a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030.
The ability to provide seamless cashless transactions will drive the market growth
With the world shifting focus toward digital and cashless payment the global merchant services market has got a tremendous boost. Merchant services provide enhanced services to help businesses with the ease of managing large volumes of consumer payments. Likewise, the merchant service providers have high reliability so that the customer’s sensitive data is safe and secure. The use of various advanced technology has immensely fastened the payment processes which helps in the smooth functioning of a business along with tremendous market expansion. Merchant services provide several alternative methods of payment which help businesses to retain and expand their consumer base. Availability of simple and quick checkouts along with minimal requirements significantly drive the global merchant services market. Merchant services provide efficiency in finance management and attract several segments of consumers. Businesses can get complete transaction details under one platform making the entire payment flow organized.
The development of eCommerce will significantly boost the global merchant services market
Owing to the rapid growth of eCommerce across the world, there will be a great demand for merchant services during the forecast period. With the help of merchant services, eCommerce businesses can provide a seamless transacting experience to their customers during checkouts. Merchant service helps to build financial accuracy and security for eCommerce businesses. The use of cashless payments expands the digital presence of eCommerce businesses by providing customers with the ease of shopping without worrying about payments. Furthermore, it helps to eliminate errors in calculation and helps to track the transaction in case of any disputes. The merchant services enable eCommerce businesses to focus on product improvement to satisfy the changing consumer needs.
Asia-Pacific to grow fastest in this segment
The increased number of eCommerce platforms being developed will significantly contribute to the growth of the merchant services market in this region. Being the hub of several top market players, Asia-Pacific will dominate the global market during the forecast period. The government initiatives taken toward digital transformation and cashless payments will contribute to the growth of the global merchant services market.
The ability to provide quality financial management for large-scale businesses will boost the growth of global merchant services market.
The need to eliminate payment errors and reduce bad checks will drive global market growth
The adoption of merchant services by an increased number of businesses will immensely maximize demand its demand in the global market. Merchant service eases the process of e-payments along with easy approvals for credit and debit card transactions. The merchant services provide a seamless transaction experience to customers as well as businesses accepting payments with the help of various tools. The ability to efficiently facilitate contactless payments will extremely boost the global merchant services market. Merchant services had laid the foundation and growth for several huge online shopping companies across the world. The adaptability of merchant services allows businesses to focus on areas of improvement and quality instead of worrying about complex payment management. Merchant payments are of utmost importance in hospitals to ensure speedy deposit of finance to have constant smooth operations. Extensive research and developments have led to the development of extreme secure technologies to initiate transactions using merchant services. Likewise, transactions made using any merchant service can be continuously tracked using the transaction id. Traditional methods including banking transactions have to a great extent been replaced by merchant services due to their seamless experience. The global merchant services market is estimated to grow at a CAGR of 9.75% and reach an estimated market value of USD 38.71 Billion.
Furthermore, an international transaction can now be Initiated with just some finger clicks with the help of merchant services instead of following the traditional lengthy banking process. The constantly growing eCommerce market tremendously boosts the growth of the global merchant services market. Nowadays, every merchant service provider focuses on a fast payment process and has to ensure highly secure systems to safeguard the crucial data of the customer. Using a merchant service provider, the customer who makes constant transactions can be rewarded using gift cards or cashback.
Although having certain benefits, certain factors can slow down the global merchant services market. Merchant services costs are comparatively higher than traditional banking services. Moreover, it is important to have a good credit score to be eligible for availing of the merchant service account. Transactions made via credit cards are liable to a transaction cost to the business. There are certain hidden charges for availing the merchant services which should be noted well in advance. Certain cheap merchant service providers allow for only a limited number of transactions to take place at a particular period.
The primary players in this segment are PayPal, Chase Payment solutions, Stripe, Dharma Merchant Services, Fiserv, Flagship Merchant Services, Payment Cloud, Square, Helcim, Payment Depot, Stax, Instabill, Barclays, Paymentsense, Sumup, Worldplay, Wells Fargo, Bank of America, Citi Bank, TSYS, JP Morgan Chase, Ayden, Galileo, FIS, Global Payments. The top players make use of the latest developed tools and technologies to meet the demand of a large volume of consumers. Constant collaboration has led to better customer satisfaction and helped these companies to expand their market reach.
Technical Advancements in the Global Merchant Services Market: A Snapshot
- On August 16th 2022, Hello Alice in collaboration with Mastercard launched the Hello Alice MasterCard for small businesses to help them expand their market reach and attract more customers.
- On September 1st 2022, Indian Oil partnered with Finserv to provide a seamless and hassle-free payment experience to its customers.
Merchant Services Market Scope
|Revenue forecast in 2030
|USD 3.2 billion
|CAGR of 5.4 % during 2020-2030
|Service Provider, Application, Merchant Type, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|PayPal, Chase Payment solutions, Stripe, Dharma Merchant Services, Fiserv, Flagship Merchant Services, Payment Cloud, Square, Helcim, Payment Depot, Stax, Instabill, Barclays, Paymentsense, Sumup, Worldplay, Wells Fargo, Bank of America, Citi Bank, TSYS, JP Morgan Chase, Ayden, Galileo, FIS, Global Payments
Key Segments of the Global Merchant Services Market
Service Provider Overview, (USD Billion)
- Non-banking financial institutions
- Banking financial institutions
- Merchant account providers
- Payment gateway providers
- Payment service providers
Application Overview, (USD Billion)
- Project management
- Ipo management
- Portfolio management
- Trade financing, credit syndication
- Business restructuring
- Credit card terminals
- Mobile payment systems
- Online shopping carts
- Payment gateway
Merchant Type Overview, (USD Billion)
- Affiliate merchant
- Retail merchant
- Wholesale merchant
- eCommerce merchant
Regional Overview, (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa