New data from Juniper Research has shown that revenue from payment platforms that enables merchants to process payments will grow from $106 billion in 2019 to $158 billion by 2024.
It forecasts over half of global revenue will be generated in China by 2024; primarily owing to its increasing affluence and vast usage of social payments such as WeChat Pay.
The new research, Mobile & Online Remote Payments for Digital & Physical Goods: Opportunities, Pain Points & Competition 2019-2024 forecasts losses from payment fraud will grow by 70% over the next five years. Juniper Research urges payment platform providers to leverage the efficiency of emerging technologies to fight this increasingly sophisticated threat.
Value-added services to boost payment solutions
The research recommends payment platform providers invest immediately to diversify their solutions. As a result, they must offer services such as store management solutions, customer insights and merchant capital finance in order to remain competitive.
According to research author, Dr Morgane Kimmich, “The market will move beyond solely offering payments in the near future by expanding to new services. These value-added services will enable payment platforms to differentiate themselves in a saturated market and build out new business models to allow vendors to generate additional revenue.”
Fintech mergers to accelerate growth as market matures
The research assessed 16 payment gateway platforms; scoring them on their service capabilities, extent and breadth of offerings and future market prospects. Juniper Research positioned the five leading vendors as follows:
The research scored Fiserv highly for its acquisition of First Data; allowing it to create an end-to-end solution in the payments space and a wide range of payments such as the Clover POS system. Fiserv and FIS have both significantly increased their customer reach and breadth of solutions through recent mega-mergers. This has allowed both companies to further assert their strong positions in the payment gateway space.
HEAR WHAT LEADING JUNIPER ANALYST ELSON SUTANTA HAS TO SAY ON CARRIER BILLING IN THE VIDEO BELOW