Payment gateways are often the linchpin in successful transaction processing and can make or break a transaction due to things like slow or variable performance, low uptime and low authorization rates. Additional factors such as APIs, onboarding, industries supported, payment methods supported, global or local reach, and cost come into play when understanding and analyzing payment gateways.
Through TSG’s expertise, exclusive GEM platform, and annual Payment Gateway Directory, we see variability across these factors and others, and how they impact business. As part of our ongoing research, we’re excited to share a few fast facts from our latest Payment Gateway Directory. The directory, completed annually, contains size and product details on nearly 100 payment gateways, from large international players to regional startups.
1) The payment gateway market is diverse
Payment gateways are owned by a wide variety of
company types. From payment networks like Visa (Authorize.Net and CyberSource)
and Mastercard, major acquirers like Fiserv (Payeezy, BluePay, CardConnect),
newer technology entrants like Adyen and Stripe, standalone gateways like
eProcessing Network and PayTrace, and hardware/terminal providers like Verifone,
Ingenico, and NCR. Players from across the payments industry are involved in
the gateway space. Gateways are increasingly prevalent in today’s market.
2) One of the top target markets is Healthcare
25% of the gateways analyzed have a focus on
healthcare. Additionally, 15% list nonprofits as a key target market, and 16% listed
B2B merchants as a focus. Restaurant was one of the most commonly supported
markets, with 26% counting the space as a target market.
3) Gift cards are supported by 58% of the payment
Most of the gateways analyzed support closed-loop
gift cards, but a sizeable portion (42%) have not added this functionality.
4) The European market is served by less than half of
the payment gateways analyzed
Europe was not a focus for a large portion of the
providers, when looking at the providers that listed geographic focus details.
There appears to be a good mix of payment gateways that are either
region-specific (commonly U.S. or North America focused), or that serve a
variety of regions around the globe.
5) A monthly fee is charged by 74% of the payment gateways
Of the providers that provided pricing information, 74% charged a monthly fee for the gateway, 26% did not. The median fee was ~$18, and the lowest fee was $1.20.
6) PayPal is not supported by over half of the payment
58% of the payment gateways do not support PayPal. Additionally,
86% do not support PayPal Credit.
7) “P” is the most common first letter of payment
18% of the gateways analyzed had their product name
start with this letter, largely because the word “pay” is in the name. An
additional 28% of providers had the word pay in their product or company name,
but the name did not start with the letter P.
Learn more: Check out TSG’s Payment Gateway Directory and email us with questions; we look forward to working with you.