Third Party Payment

Global Third Party Payment Market to Reach US$127.3 Billion by 2030

The global market for Third Party Payment estimated at US$60.7 Billion in the year 2024, is expected to reach US$127.3 Billion by 2030, growing at a CAGR of 13.1% over the analysis period 2024-2030. Online Type, one of the segments analyzed in the report, is expected to record a 14.1% CAGR and reach US$69.9 Billion by the end of the analysis period. Growth in the Mobile Type segment is estimated at 11.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$16.5 Billion While China is Forecast to Grow at 17.7% CAGR

The Third Party Payment market in the U.S. is estimated at US$16.5 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$27.1 Billion by the year 2030 trailing a CAGR of 17.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 9.5% and 11.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 10.4% CAGR.

Global Third-Party Payment Market - Key Trends & Drivers Summarized

Why Are Third-Party Platforms Replacing Traditional Channels?

Third-party payment (TPP) services—like digital wallets, payment aggregators, and peer-to-peer apps—are disrupting banking by enabling seamless payments across merchants, services, and individuals. By abstracting payment rails (ACH, card, or bank link), these platforms reduce friction, enhance user experience, and bypass legacy banking constraints. APIs, tokenization, and real-time settlement mechanisms now power everything from QR code payments in emerging markets to cross-border micropayments—making financial transactions highly agile and customer-centric.

What Technology Is Powering the TPP Revolution?

Open banking and API architecture enable secure data sharing and instant payment initiation under regulatory frameworks like PSD2, Open Banking UK, and India’s UPI. Biometric authentication, face/fingerprint recognition, and behavioral AI are building identity verification into frictionless onboarding. Blockchain and DLT are being piloted for smart-payment contracts and vendor escrow setups. Real-time fraud-monitoring systems using neural networks detect anomalies instantly. Contactless NFC, Dynamic QR, and push-to-card rails are expanding scenarios beyond e-commerce into B2B, recurring billing, and embedded payments.

Which Use Cases Are Driving Platform Adoption?

E-commerce merchants integrate TPP to offer wallet checkout, one-click subscriptions, and installment payments, increasing conversions. Micro-merchants in emerging economies leverage QR-based wallets for digital inclusion. B2B purchasers use AP-automation via TPP for better control and reconciliation. Gig economy workers rely on real-time payout wallets. Travel, utilities, and telco sectors embed e-wallets to allow in-app top-ups or multi-rail payments. Remittance firms use TPP to automate pay-outs in local payment networks.

What Is Fueling Explosive Growth in TPP?

The growth in the third-party payment market is driven by several factors including regulatory support for open banking, smartphone penetration, and consumer preference for unified in-app payment experiences. The rise of embedded finance in vertical apps is attracting start-ups and fintechs to build omnichannel payment ecosystems. Increasing global remittances and cross-border commerce demand seamless switching between rail types. Fraud and chargeback reduction technologies, along with tokenization efforts, reinforce platform trust. Lastly, banks partnering with TPPs to retain relevance and expand services fuels further market scale.

SCOPE OF STUDY:

The report analyzes the Third Party Payment market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Online Type, Mobile Type, Point of Sale Type); End-User (BFSI End-User, Retail End-User, E-Commerce End-User, Other End-Users)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 32 Featured) -

• 2Checkout (Verifone)
• Adyen
• Alipay (Ant Group)
• Amazon Payments
• Authorize.Net
• Boku, Inc.
• Braintree (PayPal)
• Checkout.com
• Elavon
• First Data (Fiserv)
• GoCardless
• Oceanpayment
• Payoneer
• PayPal
• Paytm (One97)
• PayU
• Sage Pay (Opayo)
• Skrill
• Square (Block Inc.)
• Stripe
• Worldpay (FIS)

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