The payment gateway market is observing significant growth, owing to the rising customer inclination toward digital payment solutions. Find out why payment gateway modernization has become an urgent priority for businesses today!
One of the most striking and possibly lasting impacts that the pandemic has had on the payments ecosystem is — accelerating the industry’s pace of change!
What we witnessed in recent times is nearly half a decade of change, packed into a few months.
With modernization rapidly unfolding across the global payments sector, customer expectations have been reset — in turn, reshaping the operating environment of businesses, both big and small!
If you ask me, it helps to take a cue from DTC brands like Warby Parker and Allbirds — the likes of whom have mastered the art of catering to today’s “omni-consumers” who purchase across multiple transaction platforms using both mobile and wireless applications.
With all this in the backdrop, online payment gateways have become quite a hit! Removing the hassles of fumbling around with different types of payment platforms and processors, payment gateways are helping businesses ride the digital wave by accepting multiple types of payments at once, in a single place.
This explains the phenomenal growth that the payment gateway market has experienced in the last few years. According to Global Market Insights, the payment gateway market is expected to grow to $60 billion by 2027.
Source: Global Market Insights
The growing penetration of smartphones in conjunction with rising demands for secure digital payments and skyrocketing online transaction volumes — line up to be some of the key reasons that are fueling the staggering growth of the payment gateway market.
Why is there an urgent need for payment gateway modernization?
The way I see it, payment gateways are keeping the digital economy up and running! That said, payment gateways have plenty of room for improvement and present a whole lot of lucrative opportunities to tap into. Customers today are accustomed to fast, convenient, and hassle-free payment experiences. Businesses that are quick to stay in step with the latest advancements in the payments ecosystems will reap the greatest rewards.
No doubt processing payments from different currencies at scale is a complicated task. This is why businesses that are vying for a position in the market, have little time to spare and must consider modernizing their payment gateway to be able to gain a competitive edge.
While accelerating the modernization of payment solutions has become a priority today — there might be a few who look at payment modernization as an engineering hurdle that you need to overcome.
To address your concerns, I’d like to share this tweet that I came across, where Alexia Hagen, Senior Vice President, New Product Development, Open Banking at Mastercard says that —
“Payments should be simple and easy. That can only work if the industry comes together.”
I couldn’t agree more! To help you reach your goals, you need to identify experienced payment partners who can lead the modernization journey for your payment gateway platforms. The seamless integration of payment gateway APIs will enable you to offer superior digital experiences to your customers and drive operational excellence.
Sooner or later, you will need to customize your payment solution to fit the way your business works!
Stacking payment gateways
Let’s face it, there are a few limitations that are inherent to the payment gateway infrastructure.
Mastercard, Visa, American Express, and Discover are the popular card networks that are commonly accepted across all payment gateways. Having said that, as a customer, you may have noticed that not all payment gateways accept the range of payment options and cards that we now have.
Add to that, with merchants looking to capture a wider international audience, they want to offer a fully localized international checkout process — something that not all payment gateways boast of! Securities concerns like malware and data breaches are another set of factors hampering the market growth.
All this leads up to the reason why you should consider stacking payment gateways. Stacking payment gateways or employing multiple gateways for your online business, will give your customers the advantage of using a host of payment options.
To put it simply, stacking payment gateways will help customers:
- Make payments with ease: When you decide to stack payment gateways, you will be simplifying the entire checkout process for customers.
- Pay the way they want, when they want to: Accommodating more options for customers besides credit card payments such as Venmo or Apple Pay, will translate into convenient payment experiences that will keep them coming back for more.
AI and ML are shaping the future of payment gateway processing
Payment processing is a complicated and high-risk task! With the advancements that we have made in Artificial Intelligence (AI) and Machine Learning (ML), we can be confident that these technologies are set to revolutionize payment processing.
From greater fraud detection capabilities and in-depth customer insights to intelligent recommendations based on past transactions and payment history — the benefits of leveraging AI and ML in payment gateway processing are palpable, to say the least! Businesses take note — AI and ML will help you offer simple automated solutions to the most complex of problems that payment gateway platforms pose.
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