India Payment Gateway Market is Expected to Register a CAGR of 8.70% Through 2030
Growth of E-commerce & Digital Transactions and Government
Initiatives & Digital Financial Inclusion are likely to propel the market during
the forecast period.
According to
TechSci Research report, “India Payment Gateway Market – By Region,
Competition, Forecast and Opportunities, 2020-2030F”, India Payment Gateway Market was valued at USD
1.90 Billion in 2024 and is expected to reach USD 3.16 Billion by 2030 with a
CAGR of 8.70% during the forecast period.
The
rapid growth of e-commerce in India has been a significant driver for the
payment gateway market. As more businesses, from small startups to large
corporations, shift to online platforms, the demand for secure, efficient, and
scalable payment solutions has increased. The rise of e-commerce platforms such
as Flipkart, Amazon India, and new-age online businesses has resulted in a
massive volume of digital transactions, creating an urgent need for reliable
payment gateways.
India
has one of the largest online shopper bases in the world, and this number is
expected to continue growing with increasing internet penetration, especially
in tier 2 and tier 3 cities. The shift in consumer buying behavior,
particularly post-pandemic, where consumers prefer online shopping for both
goods and services, has fueled the demand for digital payment methods.
Furthermore, the increased trust in online payment methods has encouraged
consumers to make payments through debit cards, credit cards, UPI (Unified
Payments Interface), and digital wallets. Payment gateways are thus crucial to
providing secure and smooth transactions for both businesses and consumers.
In
response to the surging demand, payment gateway providers are continually
innovating and enhancing their services. These providers offer features such as
multi-currency support, faster checkout processes, subscription-based payment
models, and customer-friendly interfaces. As e-commerce continues to thrive,
India’s digital payment infrastructure, powered by robust payment gateways, is
expected to grow even faster, contributing to the overall expansion of the
market.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Payment Gateway Market.”
Based
on Enterprise Size, The Small & Medium Enterprise held the largest market
share in 2024. Small and Medium
Enterprises (SMEs) dominate the India Payment Gateway market for several key
reasons, contributing to their significant presence in the digital payments
ecosystem. As the backbone of India’s economy, SMEs account for a large
proportion of the country’s businesses, and their increasing reliance on
digital platforms has driven demand for efficient and accessible payment
gateway solutions.
One
of the primary reasons for SMEs' dominance is the growing push toward
digitalization and financial inclusion. With government initiatives such as
Digital India and Startup India, there has been a concerted effort to bring
SMEs into the digital fold, enabling them to tap into a broader customer base.
These businesses have realized the importance of accepting digital payments to
remain competitive, especially in the face of shifting consumer behavior toward
cashless transactions. As more consumers prefer digital payments via credit
cards, UPI, and mobile wallets, SMEs have had to adapt quickly to provide
convenient, secure, and reliable payment methods. Additionally, payment gateway
providers are offering cost-effective and user-friendly solutions tailored to
the needs of SMEs. Many gateways now offer affordable pricing models, making it
feasible for smaller businesses with limited budgets to implement digital
payment systems. The simplicity and scalability of hosted and bank-integrated
payment gateways, in particular, are attractive to SMEs, as these solutions do
not require significant upfront investments or technical expertise to
integrate. The
rise of e-commerce has also contributed to the growth of SMEs in the payment
gateway market. With platforms like Shopify, WooCommerce, and others enabling
SMEs to easily create online stores, the demand for secure and fast payment
processing systems has soared. Payment gateways that offer easy integration
with these platforms have become a crucial enabler for small businesses to tap
into the growing e-commerce market.
Based on region,
North India is the fastest-growing region in the India Payment Gateway market
due to several key factors, including the region's robust economic growth,
increased internet penetration, and the rising popularity of digital payments
among consumers and businesses.
North India,
particularly states like Delhi, Uttar Pradesh, Haryana, and Punjab, has seen
significant economic development in recent years. These areas host a large
number of small and medium enterprises (SMEs) and retail businesses
transitioning to online platforms, driving the demand for secure and efficient
payment gateways. Additionally, the region’s flourishing e-commerce industry,
with major players like Flipkart, Snapdeal, and local online marketplaces, has
further accelerated the adoption of digital payment solutions.
The widespread
availability of affordable smartphones and improved internet connectivity has
enabled consumers in North India to increasingly engage in online shopping,
bill payments, and money transfers. According to recent data, the number of
internet users in the region has surged, particularly in tier 2 and tier 3
cities, which were previously underserved. This shift towards digital
engagement fuels the demand for seamless and secure payment gateway systems.
The Indian
government's push for financial inclusion and a cashless economy through
initiatives like Digital India and the Pradhan Mantri Jan Dhan Yojana (PMJDY)
has significantly impacted North India. With increasing awareness and adoption
of UPI (Unified Payments Interface), digital wallets, and other cashless
payment methods, consumers and businesses in the region are adopting payment
gateways at a rapid pace. Government-backed campaigns and the implementation of
digital payment infrastructure are providing the necessary ecosystem for
payment gateway growth.
Major companies
operating in the India Payment Gateway Market are:
- Google Pay
- PhonePe
- Paytm
- PayPal Inc.
- Stripe, Inc.
- Block, Inc.
- Adyen
- Worldpay, LLC
Download Free Sample Report
Customers can
also request 10% free customization on this report.
“The India Payment Gateway market
presents significant growth opportunities driven by factors such as the rapid
expansion of e-commerce, increasing mobile internet penetration, and government
initiatives promoting digital payments. The shift towards a cashless economy,
along with the growing adoption of digital wallets, UPI, and contactless
payment methods, further enhances market potential. Additionally, the rising
demand for cross-border payments, multi-currency support, and AI-driven fraud
prevention presents avenues for innovation. As businesses and consumers
increasingly embrace digital transactions, payment gateway providers have the
opportunity to capitalize on a fast-evolving, highly lucrative market with
substantial growth prospects.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India Payment Gateway
Market, By Type (Hosted, Bank Integrated, Self-hosted),
By Enterprise Size (Large Enterprise, Small & Medium Enterprise), By
Vertical (Retail, Travel & Hospitality, Healthcare, Education, Government,
Utilities, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth
potential of India Payment Gateway Market and provides statistics &
information on Market size, structure and future Market growth. The report
intends to provide cutting-edge Market intelligence and help decision-makers make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
India Payment Gateway Market.
Contact
Techsci Research LLC
420 Lexington Avenue,
Suite 300, New York,
United States-
10170
Tel: +13322586602
Email: [email protected]
Website: www.techsciresearch.com