74% of Payment Gateways Target Software Companies
Key data from 120+ leading global gateways published in TSG’s latest Payment Gateway Directory
Omaha, NE, Nov. 30, 2023 (GLOBE NEWSWIRE) — TSG (The Strawhecker Group), a globally recognized analytics, intelligence, and solutions-focused firm in the payments industry, has published research on more than 120 leading global payment gateways today. The findings, covering over 6,000 data points, are contained in TSG’s latest Payment Gateway Directory, the largest compiled resource on gateways host to prominent international entities, regional startups, and everything in between.
The Directory, available to purchase with a company-wide license at TSGShop, offers in-depth coverage into leading/emerging gateways in the market, from topics such as target markets to integration models. Additionally, the data provides valuable insight for purchase-decision making, competitive analysis, and partner selection.
Payment gateways ensure that the global virtual payment infrastructure runs smoothly, regardless of consumer purchase method. In a competitive space where a 99.999% uptime is considered table stakes (using TSG’s Global Experience Monitoring platform, North American gateways were measured to be accessible 99.974% of the time during Thanksgiving week online shopping), several overlooked metrics help differentiate across the vast market. API accessibility, automated onboarding, iOS and Android support, reporting capabilities, and supported payment methods are some of the criteria that can be evaluated to parse out an increasingly fragmented market.
In conjunction with its release, TSG has published a selection of trends and insights that will remain prevalent into 2024:
- Geographic Focus – 43% of gateways represented within the Directory are considered to have global reach or have stated functionality and client base on at least two continents. Looking at individual regions, North America was the most prevalent geographic service area of focus, followed by Europe, the Caribbean, Latin America, and APAC. This proportion was the same as 2022, despite increasing the number of gateways represented to 125 this year.
- Focus Verticals – Retail was again the most common industry across represented gateways, registering as a specific focus for 84%. Other notable focus verticals included Eating & Drinking Places (54%), Healthcare (50%), Entertainment & Recreation (49%), and Hospitality (49%).
- Emerging Payment Method Support –22% of gateways indicated native support to facilitate Buy Now, Pay Later (BNPL) transactions, up from 19% in 2022, and support of merchant cryptocurrency transactions increased from 9% in 2021 and 13% in 2022 to 14% in 2023.
- Setup Fees and Monthly Costs – 23% of gateways have evidence of charging gateway setup fees in at least some cases, and 54% of gateways charge a monthly fee.
- Reporting – Virtually all gateways (97%) maintained some sort of online reporting/dashboard functionality. However, only 91% of the total represented gateways offer APIs that can allow merchants and integrators to query reporting data on demand.
- Client Target Type – The most targeted client type by gateways were merchants, with 83% of gateways targeting merchant clients. Software companies were the next most targeted client type, with 74% of gateways designing and selling their solutions with software providers in mind.
- Corporate Structure – Nearly 69% of gateways represented in the Directory were determined to be owned privately. While this isn’t indicative of where total gross gateway volume lies, it indicates substantial room for global acquisition, partnership, and investment opportunities in the payment gateway space.
- API Accessibility – Similar to last year, 66% of gateways stated that their APIs and developer centers were fully public compared to 18%, where the APIs and developer centers were inaccessible. The remaining 16% of gateways were considered to have Quasi-Public or gateways with developer centers and APIs that are accessible but require additional approval (granting of sandbox account or completion of API access forms) to access.
TSG eReports subscribers can access this report and dozens of other deep dives, industry directories, country and company profiles, and educational primers.
For more information about TSG, please contact us online or call 1-833-690-1301. For media inquiries, please email [email protected].
About TSG
TSG (The Strawhecker Group) is a globally recognized analytics and consulting firm that supports the entire payments ecosystem, serving over 1,000 clients from Fortune 500 leaders to more than a dozen of the world’s most valuable brands. Trusted by industry leaders, TSG’s strategic services, market intelligence, and analytics merge to empower clients with actionable and accessible information. Please visit www.tsgpayments.com.
CONTACT: Andy Nuss TSG (The Strawhecker Group) 1-833-690-1301 [email protected]
