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Table of Contents
1.1 | Scope of the Report |
1.2 | The Payment Technology Market Research Methodology |
1.2.1 | Limitations |
1.2.2 | Primary Data Sources |
1.2.3 | Secondary Data Sources |
2.1 | Value Chain Analysis |
2.2 | Key Regulations and Industry Initiatives |
3.1 | Market Drivers |
3.1.1 | Massive Proliferation of Smartphones and Tablets (Mobile Payments) |
3.1.2 | Growing Popularity of Wearable Technology |
3.1.3 | Increasing Adoption of E-Commerce and M-Commerce Services |
3.1.4 | Increasing Adoption of Payment Technology in Banking and Financial Service Sectors (E-Banking and Mobile Payments) |
3.1.4.1 | Banking and Financial Institutions |
3.1.5 | Transparency in Payment Transactions and Security from Cyber Attacks |
3.1.6 | Government Initiatives |
3.1.7 | Entry of Leading Technology Companies |
3.2 | Market Challenges |
3.2.1 | Cost of Deployment of Emerging Payment Solutions (Europay MasterCard Visa (EMV) Chip, Magnetic Secure Transmission, Bluetooth Low Energy, Quick Response Code, Near Field Communication) |
3.2.2 | Integration of Payment Technology into Existing Software |
3.2.3 | Misuse of Stored Data (Account Details and Login Information)/Privacy Breach |
3.2.4 | Non-Uniformity of Legal and Regulatory Framework |
3.2.5 | Lack of Awareness of Payment Technology |
3.3 | Market Opportunities |
3.3.1 | Surge in E-Commerce and M-Commerce Services |
3.3.2 | Global Adoption of Digital Payment |
3.3.3 | Growing Internet and Mobile Devices Dominance |
3.3.4 | Increasing Urbanization and Disposable Income |
3.3.5 | Benefits of Digital and Mobile Payments |
3.4 | Market Restraints |
3.4.1 | Competition from Big Players |
3.4.2 | Lack of Innovative Business Models |
4.1 | Key Market Development and Strategies |
4.1.1 | Partnerships, Agreements and Collaborations |
4.1.2 | Product Launch and Development |
4.1.3 | Business Expansions and Contracts |
4.1.4 | Mergers and Acquisitions |
4.1.5 | Patents and Certifications |
4.1.6 | Events |
5.1 | Industry Attractiveness |
6.1 | EMV Chip |
6.2 | Near Field Communication (NFC) |
6.3 | Magnetic Secure Transmission (MST) |
6.4 | Bluetooth Low Energy (BLE) |
6.5 | Quick Response Code (QR Code) |
7.1 | Browser |
7.2 | Mobile App |
7.3 | Point of Sale (POS) |
8.1 | Retail and Commercial |
8.2 | Enterprise |
8.3 | Healthcare |
8.4 | Hospitality |
8.5 | Others |
9.1 | Encryption and Tokenization |
9.2 | Secure Element Systems |
9.2.1 | Host Card Emulation (HCE) |
9.3 | Biometrics |
9.4 | Certificates and Standards |
9.4.1 | Standards |
9.5 | Fraud and Risk Tools |
10.1 | North America |
10.1.1 | U.S. |
10.1.1.1 | Key players |
10.1.2 | Canada |
10.1.2.1 | Key players |
10.1.3 | Others |
10.1.3.1 | Key players |
10.2 | Europe |
10.2.1 | United Kingdom |
10.2.1.1 | Key players |
10.2.2 | Germany |
10.2.2.1 | Key players |
10.2.3 | The Netherlands |
10.2.3.1 | Key players |
10.2.4 | France |
10.2.4.1 | Key players |
10.2.5 | Others |
10.2.5.1 | Key players |
10.3 | Asia Pacific |
10.3.1 | China |
10.3.1.1 | Key players |
10.3.2 | Japan |
10.3.2.1 | Key players |
10.3.3 | India |
10.3.3.1 | Key players |
10.3.4 | South Korea |
10.3.4.1 | Key players |
10.3.5 | Others |
10.3.5.1 | Key players |
10.4 | Rest of the World (ROW) |
10.4.1 | Middle East |
10.4.2 | Africa |
10.4.3 | Latin America |
11.1 | 2Checkout |
11.1.1 | Company Overview |
11.2 | Adyen |
11.2.1 | Company Overview |
11.3 | Alipay |
11.3.1 | Company Overview |
11.4 | Apple |
11.4.1 | Company Overview |
11.4.2 | Financials |
11.4.2.1 | Financial Summary |
11.4.3 | SWOT Analysis |
11.5 | Cayan LLC |
11.5.1 | Company Overview |
11.6 | Citrus |
11.6.1 | Company Overview |
11.7 | Dwolla |
11.7.1 | Company Overview |
11.8 | Equinox |
11.8.1 | Company Overview |
11.9 | First Data Corporation |
11.9.1 | Company Overview |
11.9.1.1 | Overall Financials |
11.9.1.2 | Financial Summary |
11.9.2 | SWOT Analysis |
11.10 | Gemalto |
11.10.1 | Company Overview |
11.10.2 | Financials |
11.10.2.1 | Financial Summary |
11.10.3 | SWOT Analysis |
11.11 | |
11.11.1 | Company Overview |
11.11.2 | Financials |
11.11.2.1 | Financial Summary |
11.11.3 | SWOT Analysis |
11.12 | Ingenico |
11.12.1 | Company Overview |
11.12.2 | Financials |
11.12.2.1 | Financial Summary |
11.12.3 | SWOT Analysis |
11.13 | MasterCard |
11.13.1 | Company Overview |
11.13.2 | Financials |
11.13.2.1 | Financial Summary |
11.13.3 | SWOT Analysis |
11.14 | MFS Africa |
11.14.1 | Company Overview |
11.15 | NEC |
11.15.1 | Company Overview |
11.16 | Noire |
11.16.1 | Company Overview |
11.17 | Oberthur |
11.17.1 | Company Overview |
11.18 | PAX Technology |
11.18.1 | Company Overview |
11.18.2 | Financials |
11.18.2.1 | Financial Summary |
11.18.3 | SWOT Analysis |
11.19 | Payfort |
11.19.1 | Company Overview |
11.20 | PayPal |
11.20.1 | Company Overview |
11.20.2 | Financials |
11.20.2.1 | Financial Summary |
11.20.3 | SWOT Analysis |
11.21 | Poynt |
11.21.1 | Company Overview |
11.22 | SafetyPay |
11.22.1 | Company Overview |
11.23 | Samsung |
11.23.1 | Company Overview |
11.23.2 | Financials |
11.23.2.1 | Financial Summary |
11.23.3 | SWOT Analysis |
11.24 | Square |
11.24.1 | Company Overview |
11.24.2 | Financials |
11.24.2.1 | Financial Summary |
11.24.3 | SWOT Analysis |
11.25 | Tenpay |
11.25.1 | Company Overview |
11.26 | Tsys |
11.26.1 | Company Overview |
11.26.2 | Financials |
11.26.3 | Financial Summary |
11.26.4 | SWOT Analysis |
11.27 | Vantiv |
11.27.1 | Company Overview |
11.27.2 | Financials |
11.27.2.1 | Financial Summary |
11.27.3 | SWOT Analysis |
11.28 | Verifone |
11.28.1 | Company Overview |
11.28.2 | Financials |
11.28.2.1 | Financial Summary |
11.28.3 | SWOT Analysis |
11.29 | Vesta Corporation |
11.29.1 | Company Overview |
11.30 | Visa |
11.30.1 | Company Overview |
11.30.2 | Financials |
11.30.2.1 | Financial Summary |
11.30.3 | SWOT Analysis |
11.31 | Wepay |
11.31.1 | Company Overview |
11.32 | Wirecard |
11.32.1 | Company Overview |
11.32.2 | Financials |
11.32.2.1 | Financial Summary |
11.32.3 | SWOT Analysis |
11.33 | Worldline |
11.33.1 | Company Overview |
11.33.2 | Financials |
11.33.2.1 | Financial Summary |
11.33.3 | SWOT Analysis |
11.34 | Worldpay |
11.34.1 | Company Overview |
11.34.2 | Financials |
11.34.2.1 | Financial Summary |
11.34.3 | SWOT Analysis |
12.1 | Other Key Next Generation Payment Technology Companies |
Table 2.1 | Key Regulations and Industry Initiatives |
Table 3.1 | Market Drivers –Impact Analysis |
Table 3.2 | Market Challenges of Payment Technology Industry |
Table 3.3 | E-Commerce Revenue by Geography, 2015 |
Table 3.4 | Key Countries by Smartphone Penetration |
Table 4.1 | Key Partnerships and Collaborations (2015-16) |
Table 4.2 | Product Launches and Developments |
Table 4.3 | Business Expansions |
Table 4.4 | Contracts |
Table 4.5 | Mergers and Acquisitions |
Table 4.6 | Patents and Certifications |
Table 4.7 | Events |
Table 5.1 | Analyzing the Threat of New Entrants |
Table 5.2 | Analyzing the Bargaining Power of Buyers |
Table 5.3 | Analyzing the Bargaining Power of Suppliers |
Table 5.4 | Analyzing the Threat from Substitutes |
Table 5.5 | Analyzing the Intensity of Competitive Rivalry |
Table 6.1 | Global Next Generation Payment Technology Transaction Value by Technology, 2016-2022 |
Table 6.2 | Global Next Generation Payment Technology Transaction Volume by Technology, 2016-2022 |
Table 6.3 | Market Developments for EMV Chip, (2016) |
Table 6.4 | Global EMV Based cards Transaction Value by Application, 2016-2022 |
Table 6.5 | Global EMV Based cards Transaction Value by Geography, 2016-2022 |
Table 6.6 | Market Developments: NFC, 2016 |
Table 6.7 | Global NFC Transaction Value by Application, 2016-2022 |
Table 6.8 | Global NFC Transaction Value by Geography, 2016-2022 |
Table 6.9 | Market Developments: MST, 2016 |
Table 6.10 | Market Developments: BLE, 2016 |
Table 6.11 | Market Developments: QR Code, 2015-2016 |
Table 6.12 | Global QR Code Based Transaction Value by Application, 2016-2022 |
Table 6.13 | Global QR Code Based Transaction Value by Geography, 2016-2022 |
Table 6.14 | Prominent Payment Technologies |
Table 6.15 | Payment Technology Based on Various Attributes |
Table 6.16 | Comparison among Payment Technology Instruments |
Table 7.1 | Payment Technology applied in Mobile Point-of-Sale |
Table 8.1 | Global Next Generation Payment Technology Transaction Value by Application, 2016-2022 |
Table 8.2 | Global Payment Technology Transaction Value by Technology Type for Retail Application, 2016-2022 |
Table 8.3 | Global Payment Technology Transaction Value by Technology Type for Enterprise Application, 2016-2022 |
Table 8.4 | Global Payment Technology Transaction Value by Technology Type for Healthcare Application, 2016-2022 |
Table 8.5 | Global Payment Technology Transaction Value by Technology Type for Hospitality Application, 2016-2022 |
Table 8.6 | Payment Technology Transaction Value by Technology Type for Other Applications, 2016-2022 |
Table 9.1 | Three Forms of Secure Element Systems |
Table 10.1 | Global Next Generation Payment Technology Market, by Region, 2016-2022 |
Table 10.2 | North America Next Generation Payment Technology Market by Technology Type, 2016-2022 |
Table 10.3 | U.S.: Payment Technology Market’s Key Developments (2015-2016) |
Table 10.4 | Canada: Payment Technology Market’s Key Developments (2015-2016) |
Table 10.5 | Europe Next Generation Payment Technology Market by Technology Type, 2016-2022 |
Table 10.6 | United Kingdom: Payment Technology Market’s Key Developments (2015-2016) |
Table 10.7 | The Netherlands: Payment Technology Market’s Key Developments (2016) |
Table 10.8 | Others: Payment Technology Market’s Key Developments (2016) |
Table 10.9 | Asia Pacific Next Generation Payment Technology Market by Technology Type, 2016-2022 |
Table 10.10 | China: Payment Technology Market’s Key Developments (2015-2016) |
Table 10.11 | Japan: Payment Technology Market’s Key Developments (2015-2016) |
Table 10.12 | South Korea Payment Technology Market’s Key Developments (2015-2016) |
Table 10.13 | ROW Next Generation Payment Technology Market by Technology Type, 2016-2022 |
Table 10.14 | Middle East: Payment Technology Market’s Key Developments (2016) |
Table 10.15 | Africa: Payment Technology Market’s Key Developments (2015-2016) |
Figure 1 | Payment Technology Types |
Figure 2 | Organic and Inorganic Growth Strategies, Developments (2015-16) |
Figure 3 | Card Based Transaction Value by Top Card Providers (2015) |
Figure 4 | Global Payment Technology Market Snapshot (By Transaction Value) |
Figure 5 | Global Payment Technology Market by Technology Type, 2016-2022 |
Figure 6 | Global Payment Technology Market by Application Type, 2016-2022 |
Figure 7 | Global Payment Technology Market Transaction Value CAGR by Geographical Region, 2016-2022 |
Figure 1.1 | Next Generation Payment Technology Report Scope |
Figure 1.2 | Next Generation Payment Technology Market Scope |
Figure 1.3 | Payment Technology Methodology |
Figure 1.4 | Top Down and Bottom Up Approach |
Figure 2.1 | Value Chain Analysis-1 |
Figure 2.2 | Value Chain Analysis-2 |
Figure 3.1 | Impact Analysis of Payment Technology Industry |
Figure 3.2 | Drivers and Restraints of Payment Technology Industry |
Figure 3.3 | Market Dynamics of Payment Technology Industry |
Figure 4.1 | Organic and Inorganic Strategies Adopted in Payment Technology Market |
Figure 4.2 | Key Market Developments (2014-16) |
Figure 4.3 | Total Number of Strategies and Developments |
Figure 4.4 | Partnerships and Collaborations |
Figure 4.5 | Product Launch and Development |
Figure 4.6 | Business Expansion and Contracts |
Figure 4.7 | Mergers and Acquisitions |
Figure 4.8 | Patents and Certifications |
Figure 5.1 | Porter’s Five Forces Analysis for the Next Generation Payment Technology |
Figure 6.1 | Next Generation Payment Market: Technology Segmentation |
Figure 6.2 | Timeline: Technology Segmentation |
Figure 6.3 | Companies using various payment technology types |
Figure 6.4 | Global Payment Technology Transaction Value by Technology Type |
Figure 6.5 | Global Payment Technology Transaction Volume by Technology Type |
Figure 6.6 | EMV Chip based Card |
Figure 6.7 | Drivers and Challenges of EMV |
Figure 6.8 | NFC Technology |
Figure 6.9 | Drivers and Challenges of NFC |
Figure 6.10 | Magnetic Secure Transmission |
Figure 6.11 | Drivers and Restraints of MST |
Figure 6.12 | Drivers and Restraints of BLE |
Figure 6.13 | Types of QR Code |
Figure 6.14 | Drivers and Restraints of QR Code |
Figure 7.1 | New Generation Payment Technology Market, By Platform |
Figure 7.2 | Impact Analysis: Diverse Payment Platforms |
Figure 7.3 | Drivers and Challenges of Browsers in Payment Technology |
Figure 7.4 | Factors that Propelled the Demand of Browsers in Payment Technology |
Figure 7.5 | Advantages of Using Browsers in Payment Technology |
Figure 7.6 | Drivers and Challenges of Mobile Apps in Payment Technology |
Figure 7.7 | Factors that Propelled the Demand of Mobile Apps in Payment Technology |
Figure 7.8 | Advantages of Using Mobile Apps in Payment Technology |
Figure 7.9 | Drivers and Challenges of POS Systems in Payment Technology |
Figure 7.10 | Factors that Propelled the Demand of POS Systems in Payment Technology |
Figure 7.11 | Advantages of using POS Systems in Payment Technology |
Figure 8.1 | Payment Technology – Segmentation by Application |
Figure 8.2 | Payment Technology Market ($ Billion) by Enterprise, 2016-2022 |
Figure 8.3 | Payment Technology Market ($ Billion) by Other Applications, 2016-2022 |
Figure 9.1 | Next Generation Payment Technology – Segmentation by Security Architecture |
Figure 9.2 | Drivers and Restraints of Encryption and Tokenization |
Figure 9.3 | Factors that Propelled the Demand of Encryption and Tokenization in Payment Technology |
Figure 9.4 | Advantages of Using Encryption and Tokenization in Payment Technology |
Figure 9.5 | Drivers and Challenges of Secure Element Systems |
Figure 9.6 | Factors that Propelled the Demand of Secure Element Systems in Payment Technology |
Figure 9.7 | Advantages of Using Secure Element Systems in Payment Technology |
Figure 9.8 | Drivers and Restraints of Biometrics |
Figure 9.9 | Factors that Propelled the Demand of Biometrics in Payment Technology |
Figure 9.10 | Advantages of Using Biometrics in Payment Technology |
Figure 9.11 | Drivers and Restraints of Certificates and Standards |
Figure 9.12 | Factors that Propelled the Demand of Certificates and Standards in Payment Technology |
Figure 9.13 | Advantages of Using Certificates and Standards in Payment Technology |
Figure 9.14 | Drivers and Restraints of Fraud and Risk Tools |
Figure 9.15 | Factors that Propelled the Demand of Fraud and Risk Tools in Payment Technology |
Figure 9.16 | Advantages of Using Fraud and Risk Tools in Payment Technology |
Figure 10.1 | Next Generation Payment Technology Market: Geographical Segmentation |
Figure 10.2 | Global Payment Technology Market Transaction Value CAGR by Geographical Region, 2016-2022 |
Figure 10.3 | Geographical Segmentation of Europe |
Figure 10.4 | Geographical Regions in Asia Pacific |
Figure 10.5 | Geographical Regions in Rest of the World (ROW) |
Figure 10.6 | Driving Forces of the Payment Technology Market in Middle East |
Figure 10.7 | Driving Forces of the Payment Technology Market in Africa |
Figure 11.1 | Apple Inc. - Overall Financials, 2013-2015 ($Billion) |
Figure 11.2 | Apple Inc. - Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.3 | Apple Inc. - Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.4 | First Data Corporation Overall Financials 2013-2015 ($Billion) |
Figure 11.5 | First Data Corporation Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.6 | First Data Corporation Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.7 | Gemalto Overall Financials, 2013-2015 ($Billion) |
Figure 11.8 | Gemalto Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.9 | Gemalto Net Revenue by activity, 2013-2015 ($Billion) |
Figure 11.10 | Gemalto Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.11 | Google Overall Financials, 2013-2015 ($Billion) |
Figure 11.12 | Google Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.13 | Google Net Revenue by Geography, 2013-2015 ($Billion) |
Figure 11.14 | Ingenico Overall Financials, 2013-2015 ($Billion) |
Figure 11.15 | Ingenico Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.16 | Ingenico Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.17 | MasterCard Overall Financials, 2013-2015 ($Billion) |
Figure 11.18 | MasterCard Net Revenue by region, 2013-2015 ($Billion) |
Figure 11.19 | PAX Overall Financials, 2013-2015 ($Billion) |
Figure 11.20 | PAX Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.21 | PAX Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.22 | PayPal Overall Financials, 2013-2015 ($Billion) |
Figure 11.23 | PayPal Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.24 | Samsung Overall Financials, 2013-2015 ($Billion) |
Figure 11.25 | Samsung Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.26 | Square Overall Financials, 2014-2015 ($Billion) |
Figure 11.27 | Square Net Revenue by Business Segment, 2014-2015 ($Billion) |
Figure 11.28 | Tsys Overall Financials, 2013-2015 ($Billion) |
Figure 11.29 | Tsys- Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.30 | Vantiv Overall Financials, 2013-2015 ($Billion) |
Figure 11.31 | Vantiv Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.32 | Verifone Overall Financials, 2013-2015 ($Billion) |
Figure 11.33 | Verifone Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.34 | Verifone Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.35 | Visa Overall Financials, 2013-2015 ($Billion) |
Figure 11.36 | Visa Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.37 | Visa Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.38 | Wirecard Overall Financials, 2013-2015 ($Billion) |
Figure 11.39 | Wirecard Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.40 | Wirecard Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.41 | Worldline Overall Financials, 2013-2015 ($Billion) |
Figure 11.42 | Worldline Net Revenue by Business Segment, 2013-2015 ($Billion) |
Figure 11.43 | Worldline Net Revenue by Region, 2013-2015 ($Billion) |
Figure 11.44 | Worldpay Overall Financials, 2013-2015 ($Billion) |
Report Description
The next generation payment technology market is growing steadily owing to the need of secure and simple payment transactions in the present day. The next generation payment technology ecosystem has been supportive in addressing security, authenticity, and latency, inconvenience issues of the individuals doing payments through timely, accurate and convenient deployment of payment technology solutions. The development in the market is accredited to the enormous demand of stringent payment security regulations, innovation by technology companies, reforming payments landscape, speed of transactions, ease of use, secure and robust systems against potential attackers to systems among others. By virtue of this development, technology companies, financial institutions, e-commerce companies, payment service providers and payment hardware suppliers among others have adopted payment technology products to ensure simplified and time saving transactions.
The increasing proliferation of smartphones, popularity of wearable technology, increasing adoption of e-commerce & m-commerce, embrace by banking & financial services, government initiatives, entry of leading technology companies and availability of a diverse range of payment technology products & solutions are expected to keep driving the industry despite the financial, technological and security challenges restraining the ecosystem in several key market regions. Therefore, the global payment technology market estimation and forecast has been initiated with an exhaustive set of assumptions, following which market size information for both key geographical areas and key payment technology types & applications have been provided.
The report on ‘Next Generation Payment Technology is a meticulous compilation of the various facets of the payment technology market including a thorough analysis of the different technology types of payment technology mapped across different applications and geographical regions. The Porter’s Five Forces analysis, value chain analysis, key regulations & industry initiatives, business models and key developments have also been included in the report to understand the overall attractiveness of this industry.
The report deals with all the driving factors, challenges, opportunities and market restraints with respect to the next generation payment technology market, which are helpful in identifying trends and key success factors for the industry. The market values form a quintessential part of the report; herein the transaction value from various payment technology systems and services provided in the payment technology market is tracked in order to calculate the market size. The study additionally presents a detailed analysis of the key push and pull forces prevailing in the next generation payment technology market and the estimation and forecast for market size over the time period, 2016 to 2022.
While highlighting the key driving and restraining forces for this market, the report also provides a detailed summary of the payment technology products & solutions. It also includes the key participants involved in the industry at the relevant sections. This report also focuses on the value & volume of payment transactions done in the payment technology market based on business segments and geographical regions by the market participants.
The report puts special emphasis on the payment transactions by value or by volume in this market, owing to the changing paradigms in the financial services & technology industry. In spite of this, due to the instances of failures in integration of payment technology with existing company’s systems, mobile applications and financial pressure in development & deployment of payment technology solutions in market, majority of companies have adopted diverse forms of technology and payment platforms.
Further, the report provides an exhaustive study of the global next generation payment technology market and the trends across geographical regions such as North America, Europe, APAC, and Rest of the World. The company profile section has been broken down into the publically traded companies and private companies. While the global companies have been chosen on the basis of their market developments and revenue generation, best-selling payment technology companies have also been profiled in the report. Some of the established payment technology players in this market are Apple, Samsung, Google, MasterCard, Visa, PayPal, Ingenico, Alipay, Square, Verifone, First Data, Cayan, Adyen and Worldpay etc.
Key Questions Answered in this Report
The report answers the following questions about the next generation payment technology market:
• What are the key factors driving the payment technology market and how will the impact change through the forecast period?
• What are the major factors challenging the growth of next generation payment technology market and how can they be addressed through the forecast period?
• How will the market players leverage on key developments such as acquisitions, partnerships & collaborations, business expansions and product developments among others?
• What kind of new strategies are being adopted by existing market players to position themselves better in the payment technology industry?
• How will the payment technologies evolve through the forecast period?
• Which factors will affect the growth of the payment technology market for individual payment technology such as EMV Chip, NFC, BLE, MST and QR Code during the forecast period?
• Which factors will affect the growth of the payment technology market for different application areas like retail, healthcare, enterprise, hospitality and other applications during the forecast period?
• Which factors will affect the growth of the payment technology market for platforms such as mobile point-of-sale and mobile app during the forecast period?
• Which region will dominate the global payment technology market by the end of the forecast period?
Market Overview
With the exponential growth of mobile and digital payments, service providers and customers have expressed interest in next generation payment technology, mostly due to change in spending pattern and increased convenience. The massive infrastructure changes required to upgrade outdated and legacy payment systems and the increasingly high number of security standards imposed by the regulatory bodies have given impetus to usage of latest payment technology. Technology companies and financial institutions have laid a foundation to create a simple, global and secure payment solution which will enable customers to make payments easily. There is a dynamic shift in the security requirements and that has boosted overall business of companies from every vertical or sector.
The advent of digitalization in the payment transactions have caught the attention of global industrial ecosystem and it is expected to drastically change the dynamics of the payment technology market by creating new participants across mobile network carriers, handset original equipment manufacturer (OEM), terminal and readers’ manufacturers, near field communication (NFC) technology enablers, Europay MasterCard Visa (EMV) chip makers and financial institutions among others. All major players from each payment technology aim to record good share of revenues from payment technology products and solutions. Traditional stakeholders such as issuers, payment networks, and acquiring banks will need to focus on maintaining their current share of revenue from card transactions to newer forms of payment transactions such as mobile app and mobile wallet.
Next generation payment technology has helped to deliver secure financial services in various circumstances where threat to login data and financial information prevails. Latest payment technologies such as Europay MasterCard Visa (EMV) Chip, Near Field Communication (NFC), Bluetooth Low Energy (BLE), Quick Response Code (QR Code) and Magnetic Secure Transmission (MST) have made the payment transactions both technically and commercially feasible.
Evident transformation has taken place in the world of digital and mobile payments in the last 4 years (2013-2016). The rise of internet, the success of mobile point-of-sale devices and smartphones in terms of usage by various applications and the availability of large unbanked population in emerging economies have created new and exciting opportunities for service providers. These opportunities have been sensed by technology, and commercial organizations and by even telecommunication players. Banks and other financial institutions in the financial transaction ecosystem have developed in-house payment products in order to preserve their payments revenues and take advantage of emerging payment platforms such as mPOS, mobile wallets, virtual terminals, mobile apps and mobile money.
The next generation payment technology market is expected to progress at a significant rate since the end customers belong from diversified application portfolio ranging from retail to healthcare. The growth for this market is being driven by factors such as:
• Massive proliferation of smartphones and tablets with payment technology capabilities
• Growing popularity of wearable technology
• Increasing adoption of e-commerce and m-commerce services
The payment technology market is expected to grow in the coming future due to its convenience, cost effectiveness, durability, portability and reliability.
However, the payment technology market consists of certain negative challenges which are inhibiting the overall growth for this market:
• Cost of deployment of emerging payment technology
• Integration of payment technology
• Misuse of stored data/privacy breach
The payment technology market consists of certain opportunities which can lead to augmentation of the payment technology market and its overall growth:
• Future in e-commerce
• Global adoption of digitalization services
The payment technology market consists of certain market restraints which may stagnate the payment technology and hinder the overall growth for this market:
• Pressure of big players
• Lack of innovative business models
The cost of implementation of next generation payment technology solutions is expected to decline substantially due to the technological advancement and increasing number of business expansions, acquisitions, collaborations and product developments, the market will witness a gradual decrease in the cost of such products. Also the devices and applications have improved to a better acceptance rate among the end-user. Further advancement is expected in the design and concept of payment technology as more established technology players such as Apple, Samsung, Google, MasterCard, Visa, PayPal, Ingenico, Alipay, Square, Verifone, First Data, Cayan, Adyen, and Worldpay etc. launch their product in the market.
The following figure shows estimation of payment transaction value for next generation payment technology from 2016 to 2022. Transaction value is estimated for 3 types of payment technology which are EMV Chip, NFC, and QR Code. For other 2 types of technology namely MST and BLE beacons, estimation was done based on transactions volume. Transaction volume is forecasted from 2016 to 2022 for two next generation payment technologies, MST and BLE.
With associated advantages of multi-level security, convenience and advanced quality, the global next generation payment technology market will witness unprecedented growth and is anticipated to have double digit growth rate in the forecast period. The total transaction value through payment transactions from latest payment technology is estimated to grow over $14,000 billion by 2022 at a CAGR of 35.98% through the forecast period. The retail application segment is expected to grow at a CAGR of 36.64% from 2016 to 2022 as the demand for payment technology integrated smartphones, tablets, and wearable devices and demand of terminals, beacons, readers, point-of-sale devices for merchants is increasing. Also, the mobile payments and mobile point-of-sale entitled transactions are more accepted when compared to payment transactions using fixed POS devices, magnetic strip cards, and bank account transfer as they are more convenient to carry out transactions.
The NFC payment technology market size is growing at the highest rate due to increasing adoption of contactless payment technology in mobile handsets and wearables while EMV will dominate the payment technology market by 2022. Ease of integration of NFC payment technology with existing payment systems and increase in payment transaction is driving the growth of the market.
North America accounted for highest share in global payment technology market with robust growth in transaction value throughout the forecast period. North America is expected to grow at a CAGR of 58.26% in the forecast period from 2016 to 2022. Asia Pacific is the next region leading the payment technology market and will under-go a fast growth rate of 41.58% throughout the forecast period.
Europe is expected to have largest market share of the contactless payment technology market in 2016 due to technological advancements and increasing contactless smart cards such as NFC enabled cards adoption. APAC is anticipated to have the highest growth rate during the forecast period due to increasing number of contactless payment technology enabled smartphones and mobile devices in countries such as China, Australia, Japan and India.
Next generation payment technology has a huge potential market since it is one of the fastest growing markets globally, progressing with rapid integration of technology and financial services such as wearable products and consumer electronics among others. The global payment technology market is expanding and exploring new avenues where it can be deployed, implemented and integrated with existing systems. The government of most countries are formulating regulations and directives and organizations are encouraging heavy investments in major research and development projects to support advanced innovations in payment technology market. As the future of prominent applications and sectors becomes increasingly coupled with payment technology, it has given impetus to investors to direct more funds towards financing more next generation payment technology initiatives and strategies.
Global Next Generation Payment Technology Market
Analysis and Forecast 2016-2022, Focus On Technology Type, Platform and Geography