New York, NY (PRWEB) May 09, 2014
The Online Payment Processing Software Developers industry has experienced rapid growth during the five years to 2014, with revenue expanding an average 17.6% annually over the period. This strong growth has primarily been driven by the shift of demand from traditional brick-and-mortar stores to online retail outlets and by the boom in the number of mobile internet connections. “The ever-increasing percentage of services conducted online has also bolstered demand for industry services as online payment processing is directly tied to the use of online retail and auction sites,” according to IBISWorld Industry Analyst Sarah Kahn. In 2014, the recovering economy will boost revenue even further. Growing per capita disposable income is expected to induce consumers to spend more online, helping industry revenue grow 6.0% in 2014 to reach $14.3 billion.
The accelerated pace of revenue growth has led to high profit margins for the industry's major players and lured a large amount of new entrants to the industry. During the past five years, the number of enterprises in the industry has grown at an average annual rate of 20.8% to 1,459 operators, and is expected to grow, albeit more slowly, an annualized 4.3% during the next five years. “Some acquisition activity has taken place, such as eBay's acquisition of the mobile payment platform developers Zong and Braintree,” says Kahn. Acquisition activity will increase during the next five years, slightly tempering the flood of industry entrants.
During the next five years, mobile payment processing systems are expected to become a prominent part of the industry. These systems will enable small businesses and merchants to receive payments via their mobile phones. The new technology has already gained a foothold in some industries, particularly taxi companies, but will become more widespread over the next five years as developers improve their interfaces, consumers grow comfortable with the new technology and industry players prove they are more efficient and convenient than their many alternatives. Over the long term, the industry will look to develop a payment-as-a-platform model, a system that would create an all-encompassing layer to connect disparate methods of payment. These two new product types will encourage continued rapid revenue growth.
For more information, visit IBISWorld’s Online Payment Processing Software Developers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments primarily engaged in developing online payments processing software. Online payments processing software enables merchants to authorize, settle and manage credit card and electronic check transactions through the internet.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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