PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320174
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1320174
Payment orchestration platform market size was valued at USD 1,006.9 Million in 2022, expanding at a CAGR of 28.9% from 2023 to 2030.
Payment orchestration platform (POPs) is used in the financial industry. Additionally, it is made to solve the issue of e-commerce businesses that should deal with several payment gateway providers and handle them individually. Moreover, it is also used for routing to reconciliation, various mechanisms that assist e-Merchants with transaction management, as an online payment processing platform.
E-commerce vendors are opting for payment orchestration platforms (POPs) to ensure consumer payment and security integrity this in turn; the rising prevalence of e-commerce platforms is fueling the industry. Also, the rising penetration of the internet and smartphones are the major factors that contribute significantly to the market's expansion. Additionally, the growth of the industry is attributed to be driven by consumers using smartphones for online transactions through digital payment platforms. Moreover, vendors are assisted by payment orchestration platforms in fast-tracking Buy Now Pay Later (BNPL) payments. POPs assist consumers by providing flexibility and convenience to pay for merchant services. The BNPL use by businesses has as generated equal enthusiasm among merchants as it increases average ticket sales and helps them with higher customer conversion rates. Furthermore, without many technological developments, payment orchestration providers permit businesses to deploy the BNPL platform. Thus such growth opportunities are anticipated to propel the market growth. However, fraudulent activities and cyber threats may restrain the payment orchestration platform's market growth over the forecast period.
The global payment orchestration platform market is segmented on the basis of type, functionality, end use, and region.
The market is divided into three categories based on type: C2C, B2B, and B2C. The B2B segment is expected to maintain its dominance over the forecast period. The expansion of global trade among businesses has accelerated the requirement for B2B payments and is likely to offer growth opportunities for POPs. Additionally, businesses are eager to establish a presence to expand their operations in new countries, and these in turn stimulate international business transactions. Moreover, growing developments and increasing use of technology in B2B payments in small- & medium-sized organizations also fuel segment growth.
The market is divided into three categories based on functionality: risk management, cross-border transactions, and advanced analytics & reporting. The cross-border transactions segment is likely to possess the market share due to the rising advancement in cashless transactions and payment technologies. Moreover, the improved international and logistics supply chain platforms are attributed to propel the growth of cross-border transactions. Various developing countries depend on remittances as an essential source of foreign income, allowing them to grow and establish their assets.
The market is divided into four categories based on end use: BFSI, travel & hospitality, healthcare, e-commerce, and others. The BFSI segment is likely to dominate the largest revenue share. Easier, instant, and online payments are considered the way of future banking. In addition, these trends have emerged based on the developments of POP features and newer business models including, reliability, greater connectivity, security, and responsiveness for financial services. Further, investments for payment security in BFSI are projected to drive the BFSI segment demand.
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
With the presence of numerous prominent market players, the payment orchestration platform market can be defined as a competitive market characterized. Additionally, providers of payment orchestration are exploring various methods to enhance their services, including strategic alliances and new product releases. Moreover, the worldwide penetration of internet connectivity and smartphones can be anticipated to the convergence of changes in legislation/regulations, mobile networks, and the enhancement of affordable mobile data packages are propelling the market demand. For instance, in June 2022, IXOPAY leading payment orchestration platform, partnered with Concardis / Nets Group, a payment service provider that offers a full service for digital and cashless payments. Additionally, together they offer business access to state-of-the-art infrastructure and payments processing.
For instance, in June 2023, Judopay the leading mobile payments provider announced that, following its acquisition by Fabrick S.p.A... It will launch a payment orchestration solution for its customers, across various sectors, such as hospitality, retail & ecommerce, and mobility.