Press Release

Payment Facilitator Market Expected to Reach $15B in Payments Revenue by 2025

Going up

Software Companies Doubling Down on Payments in Response to COVID-19 Crisis


DENVERApril 22, 2020 /PRNewswire/ — According to a new report commissioned by Infinicept, titled “Payment Facilitator Global Opportunity Analysis and Industry Forecast, 2018-2025,” the payment facilitator (PF) market generated $2B in transaction revenue in 2018 and is projected to reach $15B by 2025. The number of worldwide payment facilitators is projected to reach over 4,200 during the forecast period.

“The payment facilitator market is entering a growth phase and is expected to grow at a CAGR of 31.8% during the forecast period,” said Todd Ablowitz, co-founder and co-CEO of Infinicept. “This growth is being driven by investments from payment networks, PFaaS solutions which reduce market barriers, and the proven benefits early adopters have achieved.”

payment facilitator global opportunity analysis and industry forecast

The report, based on research conducted by AZ Payments Group in partnership with Infinicept, provides quantitative insight into the future growth of the payment facilitator model. One of the largest segments of companies becoming payment facilitators is the vertically focused software provider. As these companies are focused on allowing their customers to operate as effectively as possible, they are now able to tailor the entire payments experience to perfectly fit the needs of their customers.

Ablowitz added, “Due to the COVID-19 crisis at hand, software companies can’t afford to give up the payments revenue to third parties anymore. The number of payment facilitators is going to increase significantly because software companies everywhere need to own the payments revenue they have rightfully earned. The winners are being born right now. They’re making the right decisions and doubling down on payments.”

Key Payment Facilitator market findings:

  • With payment networks heavily investing in the growth of PFs worldwide, it is foreseeable that the market will reach 4,229 PFs by 2025—which would be four times the number of PFs we have today.
  • In 2019, payment facilitators processed $929 billion in gross payment volume globally, which represented 6% of all transactions worldwide.
  • PF GPV (not including PF mega players PayPal, Square, Stripe and Shopify) could reach almost $2 trillion US by 2025.
  • In 2018, PFs generated $2 billion in revenue. Depending on the market growth rate, PFs could be generating $13 to $15 billion in revenue by 2025.

Small and micro-merchants, many of whom used to solely rely on cash-only commerce due to friction in the onboarding process, are now being supported by payment facilitators who have made it easier for small retailers to begin accepting credit card payments, both in retail and online scenarios. The sudden influx of PF supported merchants will continue to stimulate growth among payment networks due to an increased volume of worldwide digital payments.

Through owning more of the customer’s payments process, software companies will see a significant increase in payments revenue by adopting the payment facilitator model. As gross payment volumes increase for PFs, transaction revenue growth will follow suit.

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