A global payment gateway has become a crucial necessity in the current global digital era due to several factors that reflect the evolving nature of commerce and finance. Here are some key reasons:
1. Globalization of Businesses:
- With businesses expanding their reach across borders, the need for a payment gateway that can facilitate transactions in multiple currencies and adapt to diverse regulatory environments has grown.
- According to a report by Statista, global retail e-commerce sales are projected to reach $6.31 trillion in 2023, highlighting the increasing international nature of online transactions.
2. E-commerce Boom:
- The rise of e-commerce platforms has been exponential, and consumers now expect seamless and secure payment options.
- As per UNCTAD, global (B2B B2C) e-commerce sales were reached $26.7 trillion in 2019, underscoring the significance of efficient global payment gateway in handling the growing volume of online transactions.
3. Digital Transformation:
- Businesses are undergoing digital transformation, moving away from traditional brick-and-mortar models to online platforms.
- According to a study by McKinsey, the share of digitally influenced purchases in luxury sales is projected 80% by 2023, emphasizing the need for robust digital payment solutions.
4. Mobile Payments and Wallets:
- The proliferation of smartphones has led to a surge in mobile payments and digital wallets.
- Statista predicts that the number of mobile payment users will surpass 1.3 billion by 2023, showcasing the increasing reliance on mobile devices for financial transactions.
5. Cross-Border Trade:
- Businesses engage in cross-border trade, and consumers often make purchases from international vendors.
- A study by Accenture found that cross-border e-commerce is growing at twice the rate of domestic e-commerce, indicating the need for payment gateways that can facilitate secure cross-border transactions.
6. Security and Compliance:
- The increasing frequency of cyber threats requires robust security measures in payment processing.
- According to the Cybersecurity Ventures Cybercrime Report, global cybercrime costs are expected to reach $10.5 trillion annually by 2025, highlighting the critical importance of secure payment gateways.
7. Regulatory Compliance:
- Different regions have varying regulatory requirements, and businesses need offshore payment gateway that can ensure compliance with local laws.
- The Payment Services Directive 2 (PSD2) in Europe is an example of regulatory changes affecting payment services, emphasizing the need for adaptability in global payment solutions.
Overall, the global digital era demands a payment infrastructure that can cater to the diverse needs of businesses and consumers across borders, offering seamless, secure, and compliant transactions. The statistics mentioned above underscore the immense scale and growth of global digital transactions, emphasizing the need for a reliable and efficient global payment gateway.
