Global Cloud-native Payment Platform Market Size (2024-2030)

The estimated size of the global Cloud-native Payment Platform Market is poised to ascend from USD 2.93 Billion in 2023 to approximately USD 4.06 Billion by 2030. Witnessing a robust Compound Annual Growth Rate (CAGR) of 4.7% from 2024 to 2030, the market's expansion is primarily propelled by several advantages offered by cloud payment platforms such as reduced infrastructure costs, simplified maintenance, and enhanced data security.

Market Overview: Cloud-Native Payments Platforms

The Cloud Native payment platform amalgamates cutting-edge micro-services technology and Application Programming Interfaces (APIs), supported by extensive banking and payments expertise. Form3's comprehensive cloud-native payments platform provides access to various payment schemes including ACH, Direct Debits, and real-time transaction processing through a unified API. Tailored for the contemporary era of payments, cloud-native solutions facilitate streamlined provisioning, diminished infrastructure expenditures, flexible content deployment, expedited updates, and global scalability.

Comprising a suite of reusable services, these modern payment systems not only amalgamate multiple existing payment schemes onto a unified platform but also fortify businesses for the future by enabling seamless adoption of emerging payment methods. Achieving this through the reutilization of existing services, these systems mitigate the necessity for numerous new developments to support novel business ventures.

Constructed upon a cloud-native, microservices architecture, API connectivity, and developmental tools, these platforms empower banks to offer contemporary schemes, modes, and channels, thereby reducing their time-to-market, minimizing reliance on multiple vendors, rationalizing operational expenses, and attaining a more centralized perspective on authentication, authorization, exposure, and risk management. The robust data security measures provided by these payment systems are anticipated to be a pivotal factor propelling market growth during the forecast period spanning from 2024 to 2028.

Impact of COVID-19 on the Cloud-native Payment Platform Market

COVID-19, an infectious ailment stemming from the novel coronavirus, emerged largely unknown before its outbreak in Wuhan, China, in December 2019, swiftly escalating into a global pandemic. The ensuing burden on healthcare systems worldwide prompted companies to intensify Research and Development (R&D) endeavors aimed at developing vaccines and treatments against the virus.

The COVID-19 pandemic has yielded a positive impact on the market, fostering a sharp surge in online sales and the heightened adoption of online payment solutions. In response to the pandemic, consumers worldwide transitioned from offline to online shopping paradigms. This shift has significantly influenced the mobile money market, as both consumers and enterprises adjusted their purchasing behaviors. Notably, there has been a remarkable uptick in the utilization of mobile wallets, given the imperative of contactless payments amidst efforts to curb the spread of COVID-19. The avoidance of cash and card transactions to mitigate the risk of contagion has led many consumers to explore mobile wallet functionalities. As the COVID-19 crisis continues to unfold, consumers are increasingly embracing Virtual Payment methods, underscoring the indispensability of mobile money for everyday transactions.

Market Drivers:

The market growth is primarily driven by various advantages offered by cloud-native payment platforms such as reduced infrastructure costs, simplified maintenance, and enhanced data security.

Tailored for the contemporary era of payments, cloud-native solutions facilitate streamlined provisioning, diminished infrastructure expenditures, flexible content deployment, expedited updates, and global scalability. In some instances, data in the cloud is even more securely managed than in on-premises models. Furthermore, a multitude of cloud options—be it private, public, or hybrid—enable Financial Institutions (FIs) to mitigate risk by affording them the flexibility to tailor the location of their data based on specific needs and/or local regulations.

Market Restraints:

The market growth is impeded by the risk of data breaches and fraud.

Consumer reluctance towards embracing Virtual Payments stems from apprehensions regarding potential risks such as data leaks, hacking vulnerabilities, and digital wallet insecurities. Additionally, there exists a comparatively lesser emphasis on elucidating the benefits of Virtual Payments over traditional cash, savings cards, or debit cards for online transactions, particularly when purchasing high-value items. These conditions are poised to restrain market expansion during the forecast period.

Global Cloud-native Payment Platform Market - By Payment Type:

• Remote Payments
• Proximity Payments

Within the realm of payment types, Proximity Payments emerges as the primary segment within the cloud-native payment platform market. The surge in contactless payment adoption, spurred by safety and convenience concerns, has propelled the demand for Proximity Payments, establishing them as the predominant choice in today's market scenario.

Furthermore, Remote Payments are anticipated to exhibit the most rapid growth during the projected period. The uptick in online shopping, e-commerce activities, and digital transactions has stimulated the demand for Remote Payments. The capability of cloud-native payment platforms to facilitate secure and swift Remote Payments perfectly aligns with the increasing preference for cashless and contactless transactions, thereby propelling the rapid expansion of this segment.

Global Cloud-native Payment Platform Market - By Geographic Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East
• Africa

From a geographical perspective, North America asserted its dominance in the global market in 2022, representing the largest revenue share of over 34.0%. This regional market benefits from factors such as the increased deployment of smart parking meters and technological advancements. A notable instance is the collaboration where a former employer provided contactless payment capabilities throughout Vancouver city. Additionally, the proliferation of unmanned stores in the U.S. is fostering the demand for digital payment solutions.

European banks are actively pursuing the launch of a European payment initiative aimed at creating a unified payment solution for merchants and consumers across the region. Such initiatives are expected to unlock new growth avenues for the market during the forecast period. Furthermore, the digital payment campaign initiated by the Italian government to expand digital payment adoption within the country is further propelling regional market growth.

Global Cloud-native Payment Platform Market Share by Leading Companies:

1. Apple
2. PayPal
3. Samsung
4. JP Morgan Chase
5. Amazon
6. Tencent
7. Google
8. Ant Financial
9. One97 Communications Limited
10. Vodafone
11. Skrill
12. American Express
13. Sprint Corporation
14. Wells Fargo
15. Mastercard, Visa
16. First Data

Mergers and acquisitions within the industry have enabled companies to diversify and enhance their service offerings.

For instance, Renovate stands out as a company continuously pioneering new payment systems utilizing cloud technology, particularly effective for online transactions.

The competitive landscape of the market remains notably fragmented. Market participants are focusing on strategies such as partnerships, joint ventures, product innovation, research & development, and geographical expansion to bolster their market positions. Merchants are adopting on-premise digital payment solutions due to security advantages, including heightened security levels, thereby enhancing customer satisfaction levels. Market players are honing in on enhancing their product portfolios to better cater to evolving customer needs and maintain competitiveness. Post-pandemic, the market is expected to witness growth owing to increased demand, and it is teeming with numerous competitors making persistent efforts to enhance their revenues in the foreseeable future. Activities such as collaborations and promotional endeavors are expected to propel market growth during the forecast period.

RECENT DEVELOPMENTS IN THE GLOBAL CLOUD-NATIVE PAYMENT PLATFORM MARKET:

• Agreement - In March 2022, Wirecard and Sisal Group inked an agreement to collaborate on contactless payment solutions for the SisalPay brand.