Payment Processing companies grow through Applied Innovation

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Payment processing companies are seeing impressive growth and may present attractive investment options by providing diverse services.

Changing technology and spending habits are forcing payment systems to change. New providers are emerging to challenge banks and old providers.

By providing diverse services, these providers cater to a range of specific markets. Adaptable technology helps to future proof these innovations.

Net Element is capitalizing on this growing space by providing an integrated payment solution that includes online, mobile and smart point-of-sale payments solutions for merchants in diverse industries. Square Inc. is working with trends such as bitcoin and in-app payment. PayPal Holdings Inc. processes over $155 billion a year in mobile payments.

The process is still connected to the cash economy through systems such as the ATMs of Euronet Worldwide Inc. Services being developed include shopping without a checkout and online fundraising, areas Global Payments Inc. is working on.

From micropayments to macroeconomic trends, the whole market seems set to support and encourage the growth of payment companies.

The conversation around payment processing is no longer driven by banks. It's primarily the work of fintech companies, which are developing payment systems that work faster and more efficiently, and at lower costs. Making these payment options user friendly is crucial, as adoption is driven from the ground up by consumers.

The result has been a staggering rise in the value of some older payment technology firms but also the emergence of upstart contenders for the payment processing crown. By covering a range of electronic payments, these newcomers can quickly carve out important niches for themselves.