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When considering the top examples of disruptive technology set to transform businesses in 2022, the metaverse and blockchain no doubt rank high in the minds of most people. While these technologies will have a profound and enduring impact on society, we should not let this overshadow the impact certain B2B platforms are having in actively transforming businesses. Global payment gateways and payment services providers (PSPs) are deploying new payment technologies to ensure merchants can access new markets once considered out of reach. 

 

For companies that don’t have the resources, expertise, or connections, the opportunity to access more consumers by offering products or services in a foreign market comes at a high risk. What’s more, finding local partners to work with requires an understanding of the local culture and company etiquette. Taking all these factors into account, many SME vendors once would have felt deterred from accessing new markets. 

 

The reality is that PSPs like us are now available for merchants to access new markets immediately. Suddenly, a UK company can partner with Transact365 and instantaneously be able to market its products and services to countries like India, taking advantage of merchant accounts and sophisticated payment gateways. 

 

Looking at the current size and growth projections for the global payment gateway market, we can immediately see its potential. In 2020, the market was valued at $18.21 billion. What’s more, with more businesses undergoing digital transformations and consumers embracing the latest technology to make payments online, it is anticipated that the sector will expand at a compound annual growth rate of 21.7% from 2021 to 2028. 

 

There are a number of factors driving this growth. 

 

The first has to do with the continued advancement of mobile payment technologies, which includes mobile wallets. A decade ago, there was a clear hesitation amongst businesses and consumers when it came to the use of technology linked to finance and transactions. This stemmed from a combination of fears linked to cyber security (a topic we discuss further below), a lack of understanding around payment software, and the lack of available gateways to facilitate international payments. 

 

The COVID-19 pandemic accelerated the digitalisation of the payments industry by as much as two to three years. Businesses that traditionally relied on in-store transactions have had to drastically transform their payment models to appeal to the changing needs of their customers. This was a global phenomenon affecting businesses not just in established markets but to those in emerging economies as well.

 

Established markets have embraced digital payment systems, yet emerging markets have demonstrated the true growth potential, leapfrogging now outdated iterations of technology and embracing fintech solutions that address the challenges commonly faced. On this basis, tapping into emerging consumer markets has to be on the radar of all businesses moving forward. A study by McKinsey estimates that by 2025 consumers in emerging markets will spend around $30 trillion annually, going so far as to claim it is the biggest opportunity in the history of capitalism. 

 

Transact365 was launched to tap into these emerging markets, identifying regions and jurisdictions set to become the new global hubs for commerce. Founded in 2017 and with over 25 years collective experience across the payments sector, Transact365’s payment gateway is PCI Level 1 Certified and has a partner network established across some of the world’s leading consumer markets, including the UK, Europe, North America and Asia. 

 

In January 2022 we launched into India, offering our merchant partners access to over one billion consumers. Excitingly, we will be building on this announcement in the coming months with expansions in high-growth, emerging markets, including Latin America. 

 

Transact365 goes one step further. Rather than functioning solely as a payment gateway, we have incorporated consultancy services into our underlying proposition. With a team of local market experts in leading target markets, we work with our vendors to make sure their expansion into  international markets is effective, sustainable, and targeted. We see the opportunities on offer and use this knowledge to provide insight that our vendors would otherwise not have dealing with other gateways. 

 

Importantly, payment gateways also offer additional advantages for merchants catering to the needs of their consumers. From cross-border transactions to FX rates and real-time reconciliation, the next generation of fintech gateway startups is offering sophisticated payment methods. Cross-border transactions are particularly significant for emerging markets like LATAM where cross intra-regional migration is commonplace.

 

As with any sector built on technology, cyber-security and fraud are top concerns. Payment gateways are no exception - by understanding and preemptively identifying the next generation of cyber-threats, Transact365 has defensive mechanisms in place to project transactions between consumers and vendors. The value of payments transacted via our gateway total multi-billions of dollars, yet our chargeback ratio remains under 0.006%. This statistic reflects the effectiveness of our cyber-defense and has been incremental to the successful relationships we have established with our partners. 

 

Over the next few years, global payment gateways will be instigators of international commerce and trade and we are looking to lead this charge, offering a sophisticated payment gateway for vendors in emerging markets to expand their customer base.

 

We will be exhibiting at iFX EXPO Dubai on 22-24 February to showcase our PSP solutions. Get in touch to find out more.