32 global payment processing industry statistics and trends for 2025

Key takeaways:

• The payment processing industry market was valued at US$61.1 billion in 2023.¹

• 93% of global consumers say pricing in their local currency affects their purchase decision, so payment localisation is vital.²

• The significance of AI applications is growing in areas such as automation and fraud detection can potentially reduce costs by 30%.³

The global market is now more accessible because of payment processors that work efficiently behind the scenes, allowing us to send payments internationally in minutes. In fact, 72% of small businesses (SMBs) believe payment processing companies are the best system to support their financial services needs.⁹

Global businesses rely on payment processors to facilitate secure transactions, manage fraud detection, and ensure compliance with international regulations. These factors are also collectively driving the rapid evolution of payment processing technology. We’ve pulled the top payment processing industry statistics for 2025 so you can stay on top of what remains relevant and effective in this dynamic industry.

Global payment processing value could reach US$147B by 2032

Fast, efficient online payments have revolutionised businesses, allowing them access to high-quality employees, suppliers, and customers across the globe. It was valued at US$61.1 billion in 2023, with an estimated 10.5% compound annual growth rate (CAGR) through 2032¹.

This growth is driven by solutions like Airwallex, which simplifies managing multiple currencies by consolidating collection and spending into one global and financial platform. By eliminating the need for multiple providers, businesses across industries benefit from significant time and cost efficiencies on a global scale.

The payment processing industry clearly isn’t slowing down as digital payments become more accessible to help local businesses expand globally. Several global growth estimates back this up:

• Digital transaction growth is fuelled by eCommerce and mobile payments.1

• PayPal (45.39%), Stripe (17.33%), and Shopify Pay Installments (15.73%) are the top three most-used payment processing technologies worldwide in August 2024.⁸

• Embedded finance solutions are experiencing significant growth, with forecasts that the global market will reach US$606 billion. Experts also anticipate US$6.5 trillion in payments processed through embedded channels by 2025.⁹

• Fraud prevention technology is an increasingly important feature, as almost three-quarters (71%) of businesses report experiencing payment fraud attacks in 2023.¹⁰

Cross-border eCommerce drives processing growth, but 48% of executives aren’t prepared

Executives understand the importance of cross-border expansion, but 48% of executives say they’re unprepared to handle cross-border eCommerce needs.

Adopting an end-to-end payment processing platform, including gateways and processors with cross-border support can help you stay competitive. Statistics like these show that’s a smart move:

Payment acceptance:

• 81% of consumers buy directly from the merchant’s website, so a good payment processing integration is important for customer experience and sales.¹

• 93% of global consumers say pricing in their local currency affects their purchase decision, highlighting the value of a localised payment processing system.¹

• 34% of global consumers like cross-border shopping for its increased product availability, while 26% are looking for better quality goods.¹

• Investment in shipping, returns, and refund processes is highly recommended as 47% of customers claim long international refund processing times are challenging. 44% of customers cite return shipping costs as a top issue when ordering from international merchants.¹

• 72% of businesses surveyed in 2022 planned to expand to a new city, country, or region within 12 months.¹¹

• 82% of businesses in the Asia-Pacific region planned for expansion.

• 78% of businesses in the Americas wanted to expand into new markets.

Over half of consumers prefer quick, easy digital payments and businesses are responding

Customers have high expectations at checkout. In fact, 70% of global shoppers abandon their cart after adding items.¹ One of the top reasons these customers abandoned their carts was because there weren’t enough payment methods.

Customers want to see their preferred payment methods available and enjoy a great user experience. This means localisation and local payment methods can help build trust and improve the payment experience. This is supported by evidence that 93% of consumers claim that seeing products in their local currency impacts their decision to purchase.⁹

Here’s some more data on payment preferences:

Payment methods:

• When we look at cross-border purchases, 39% of global consumers use credit cards, 26% prefer digital wallets, and 23% use debit cards.¹

• Digital payment methods reign supreme. Research estimates that 78% of consumers from China prefer digital payment methods. This sentiment is echoed in the UK and US showing that 50% of consumers there prefer digital payment methods.¹²

• Digital wallets are increasingly popular globally, with 37% of Australians, 33% of UK citizens, and 27% of Americans preferring global digital wallets over other payment methods.¹

• Alternative payment methods (APMs) are projected to cover 360 billion eCommerce payments by 2029 – about 69% of global eCommerce transactions.⁴

• The Buy Now, Pay Later (BNPL) market was valued at US$39.65 billion in 2024, with an expected CAGR of 30.5% through 2033.¹³

• BNPL services are most popular in North America with a 30% market share, but its CAGR is largest in the Asia-Pacific region.¹³

• The likelihood that a customer makes a purchase increases by 9 points to 26% when they use BNPL services. The average purchase value is also 10% larger with BNPL purchases.¹⁴

Payment experience:

• Customers who sign up for “one-click” checkout features increase spending by 28.5% on average. They also visit the website more often and increase their purchase frequency by 43%.¹⁵

• Increasing positive customer experiences is the top reason executives implement embedded finance capabilities (78%), and executives prioritise this for indirect monetisation.¹⁶

Fintech companies and modern payment processing solutions solve this need by expanding their geographical reach to provide the best payment experience for businesses.

Compliance with foreign regulations is a top concern for cross-border business

For businesses operating internationally, compliance with foreign regulations, and keeping abreast of security risks is necessary. Non-compliance can lead to penalties, legal issues, and reputational damage.

Payment processing technology is ever-evolving to keep up with changing compliance requirements and security threats. For example, AI advancements have improved fraud detection and have also made fraud regulation compliance simpler.

Here’s an overview of the latest movements that benefit and protect businesses’ bottom line:

• Forecasts claim that AI implementation in financial services can increase revenue by US$44.68 billion for UK firms.¹⁹

• For example, 58% of companies say AI automation has made financial regulation compliance easier.¹⁸

• Additionally, AI fraud detection can reduce fraud detection costs by 30%.³

• In 2023, 26,447 vulnerabilities were disclosed – a 1,500 vulnerability increase over 2022 and part of a year-over-year trend. However, fewer than 1% of these vulnerabilities are high-risk.²⁰

• The average time it takes for a high-risk vulnerability to be exploited was just 44 days, though 25% of high-risk vulnerabilities were exploited the day they were disclosed.²⁰

• The Payment Card Industry Data Security Standard (PCI DSS) 4.0 implementation deadline in 2024 is suspected to have increased workloads in preparation for the transition. As a result, just 14.3% of companies met full PCI DSS compliance requirements in 2023.²¹

• The fast evolution of AI means regulations like the AI Act are still catching up. Partnering with a trusted payment processing solution allows you to navigate changing regulations with less internal effort.¹⁷

Prepare for the future with an all-in-one payment processor today

Payment processing industry statistics show that consumers are buying products and services from businesses around the world. Secure payment processing has broken down geographical barriers, allowing businesses to sell virtually anywhere.

Airwallex Payments help customers easily collect global payments from 160+ local payment methods in over 180 countries, increasing their acceptance rates and reducing checkout abandonment. AI fraud detection and regulatory compliance are built in, so business can accept payments from anywhere hassle-free.

Sources:

1. https://www.gminsights.com/industry-analysis/payment-processing-solutions-market/market-size

2. https://www.airwallex.com/ecommerce-campaign-2024

3. https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai

4. https://www.gminsights.com/industry-analysis/payment-processing-solutions-market/market-size

5. https://www.vml.com/insight/the-future-shopper-report-2023

6. https://www.vertice.one/l/saas-inflation-index-report

7. https://redline.digital/saas-industry-statistics/

8. https://www.statista.com/statistics/895236/australia-market-share-online-payment-platforms/

9. https://www.airwallex.com/uk/embedded-finance-opportunity-for-platforms-and-marketplaces

10. https://www.jpmorgan.com/content/dam/jpm/commercial-banking/insights/cybersecurity/highlights-afp-2022-payments-fraud-and-control-report.pdf

11. https://www.equinix.com/resources/infopapers/equinix-tech-trends-survey

12. https://ibsintelligence.com/blogs/crossing-borders-how-local-payment-methods-drive-global-commerce/

13. https://straitsresearch.com/report/buy-now-pay-later-market

14. https://hbr.org/2024/11/research-how-buy-now-pay-later-is-changing-consumer-spending

15. https://news.cornell.edu/stories/2023/02/one-click-checkout-increases-spending-and-engagement

16. https://www.airwallex.com/report/scaling-embedded-finance

17. https://ibsintelligence.com/blogs/ai-adoption-in-financial-services-balancing-risks-and-regulations/

18. https://www.pymnts.com/study/accounts-payable-receivable-trends-automation-technology/

19. https://www.reuters.com/technology/detailed-ai-rules-not-cards-now-says-uk-financial-watchdog-2024-06-05/

20. https://blog.qualys.com/vulnerabilities-threat-research/2023/12/19/2023-threat-landscape-year-in-review-part-one

21. https://www.verizon.com/business/resources/Tfff/reports/2024-payment-security-report.pdf