Payments Platform Revenue to Jump 50 Percent by 2024: Study Finds
- The sector might get more boost with the introduction of digital currencies.
UK-based market research company Juniper Research is projecting a 50 percent revenue growth in the payments platforms by 2014, touching $154 billion.
According to the new market study by the company, the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term sector is one of the rapidly growing fintech areas, which will generate a total revenue of $106 billion by the end of this year.
The company believes that social payments like WeChat Pay will contribute vastly to the growth of the sector. It is also bullish on the Chinese markets and is projecting 50 percent of the revenue to be generated from that single market.
The company detailed that it accessed 16 payment gateway platforms to conduct the market research and also scored the gateways on service capabilities, extent and breadth of offerings, and future market prospects. Fiserv aced the list primarily because of its acquisition of First Data, which allows it to create end-to-end payment solutions. PayPal, FIS, CyberSource, and Adyen also made it to the top five.
Demand for new services
The research study also stressed the importance of diversification of the platforms with new services to remain competitive in the market. According to the company, services like store management solutions, customer insights, and merchant capital finance are very crucial.
“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,” Dr. Morgane Kimmich, author of the research report, stated.
The report also detailed that payment-related fraud will also increase at a pace of 70 percent over the next five years.
Meanwhile, the payments sector is also seeing a push from the companies to introduce Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based payments networks. Facebook is at the forefront of creating a payments ecosystem on its platform by introducing a digital currency, while, Chinese central bank is also developing its own digital yuan.
UK-based market research company Juniper Research is projecting a 50 percent revenue growth in the payments platforms by 2014, touching $154 billion.
According to the new market study by the company, the Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term sector is one of the rapidly growing fintech areas, which will generate a total revenue of $106 billion by the end of this year.
The company believes that social payments like WeChat Pay will contribute vastly to the growth of the sector. It is also bullish on the Chinese markets and is projecting 50 percent of the revenue to be generated from that single market.
The company detailed that it accessed 16 payment gateway platforms to conduct the market research and also scored the gateways on service capabilities, extent and breadth of offerings, and future market prospects. Fiserv aced the list primarily because of its acquisition of First Data, which allows it to create end-to-end payment solutions. PayPal, FIS, CyberSource, and Adyen also made it to the top five.
Demand for new services
The research study also stressed the importance of diversification of the platforms with new services to remain competitive in the market. According to the company, services like store management solutions, customer insights, and merchant capital finance are very crucial.
“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,” Dr. Morgane Kimmich, author of the research report, stated.
The report also detailed that payment-related fraud will also increase at a pace of 70 percent over the next five years.
Meanwhile, the payments sector is also seeing a push from the companies to introduce Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based payments networks. Facebook is at the forefront of creating a payments ecosystem on its platform by introducing a digital currency, while, Chinese central bank is also developing its own digital yuan.