What Has Been The Evolution of the Merchant Acquiring Market in Recent Years?
The merchant acquiring market has seen considerable growth due to a variety of factors.
• The size of the merchant acquiring market has seen a quick expansion in the past few years. The market, which sits at $25.43 billion in 2024, is projected to reach $28.2 billion in 2025, representing a compound annual growth rate (CAGR) of 10.9%.
This substantial rise in the previous period can be credited to an escalating demand for cross-border e-commerce, the boom in peer-to-peer (p2p) payment systems, the surge in digital banking and fintech innovations, the expansion of e-commerce, and an upswing in the demand for cash alternatives.
How Will the Merchant Acquiring Market?
The merchant acquiring market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for swift expansion in the merchant acquiring market size in the upcoming years. The market is forecasted to escalate to $42.16 $ billion by 2029, with a compound annual growth rate (CAGR) pegged at 10.6%.
This predicted growth during the forecast period is ascribed to escalations in smartphone and mobile payments usage, increased uptake of contactless payments, burgeoning demand for digital payments, a surge in the requirement for secure, fraud-resistant payment solutions, and increased financial outlay in payment technology. The forecast period also signals significant trends including technological advancements, AI integration, subscription-based models, digital currencies, and contactless wearables.
Which Factors Are Boosting Growth In The Merchant Acquiring Market?
The surge in demand for digitalized payment methods is posited to boost the expansion of the merchant acquiring realm. Digitalized payments refer to fund transfers carried out electronically from one party to another via digital platforms, eliminating the need for physical cash or checks. This surge in demand is due to numerous decisive factors such as e-commerce expansion, preference for contactless payment options, and the extensive accessibility of internet services. Applying these digital payments in merchant acquiring promotes more efficient transactions, minimizes the handling of cash, and improves the security of payments, which enhances operational efficiency for businesses. To illustrate, as reported by the Consumer Financial Protection Bureau, an agency of the US government, in September 2023, American consumers relied on Google Pay (Google's mobile payment service created to enable in-app, online, and physical contactless purchases via mobile devices) to expend $65.2 billion at retail businesses in 2022, a significant increase from $24.8 billion in 2021. Hence, this rising demand for digitalized payments is fueling the expansion of the merchant acquiring sector.
What Key Areas Define The Segmentation Of The Global Merchant Acquiring Market?
The merchant acquiringmarket covered in this report is segmented –
1) By Type: Digital Commerce, Traditional Commerce
2) By Payment Method: Visa, Mastercard, American Express, Discover, Japan Credit Bureau, Local Card Networks, Alternative Payment Models
3) By Sales Channel: Direct Channel, Distribution Channel
4) By Application: Small And Medium Enterprises, Large Enterprises, Other Applications
Subsegments:
1) By Digital Commerce: E-commerce Payment Gateways, Mobile Payment Solutions, Online Point-of-Sale (POS) Systems, Digital Wallet and NFC Payments, Subscription-Based Payment Solutions, Peer-to-Peer (P2P) Payment Platforms
2) By Traditional Commerce: In-Store POS Systems, Card-Not-Present (CNP) Transactions, Retail Payment Solutions, Contactless Payment Solutions, Terminal-Based Payment Systems, Multi-Channel Payment Processing
Pre-Book The Merchant Acquiring Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Merchant Acquiring Market?
Prominent firms operating in the merchant acquiring market are prioritizing strategic partnerships to elevate their competitiveness in the sector. These collaborations typically include financial institutions, payment processors, and technology providers, all working together to improve payment solutions and broaden their market presence. For instance, in July 2024, a partnership was formed between Shift4 Payments Inc., a payment processing firm based in the United States, and Phos, a software firm based in Bulgaria. The aim of this partnership is to enhance Phos' acquiring capabilities, encouraging the adoption of its SoftPOS solution among European merchant customers. As a result of this collaboration, Phos customers can now make use of Shift4's global acquiring and payment processing services, enabling them to conduct transactions through global card networks and digital wallets.
Who Are the Key Players In The Merchant Acquiring Market?
Major companies operating in the merchant acquiring market are:
• Commercial and Industrial Bank of China
• JPMorgan Chase & Co.
• Bank of America Merchant Services
• Citi Merchant Services
• American Express Company
• ING Group N.V.
• Banco Bilbao Vizcaya Argentaria S.A.
• Fiserv Inc.
• Fidelity National Information Services Inc.
• Global Payments Inc.
• Sberbank
• The Royal Bank of Scotland plc
• Shift4 Payments Inc.
• Worldpay Group plc
• Heartland Payment Systems Inc.
• Adyen N.V.
• Paysafe Group
• Elavon Inc.
• Crédit Agricole S.A.
• Zettle by PayPal
• Chase Paymentech Solutions LLC
• PayCommerce Inc.
What Is The Most Dominant Region In The Merchant Acquiring Market?
North America was the largest region in the merchant acquiring market in 2024. The regions covered in the merchant acquiring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
