Payment processing is an essential function of any merchant, be the business a brick-and-mortar establishment or an e-commerce company. As e-commerce has been on the rise during recent years, software developers have responded to the needs of businesses looking to expand their offerings to the internet through reliable online platforms. A recent report confirms this, noting an uptick in this industry niche throughout the past five years.

The research, provided by industry analysis firm IBISWorld, states that a variety of metrics related to businesses engaged in online payment processing software development have gone up between 2007 and 2012. One of these is the sheer number of firms doing such business, which has increased annually by 16.2 per cent during the aforementioned period and is projected to continue growing by 14.9 per cent each year for the next five years.

Revenue increased during the same range of time, rising by 20.6 per cent each year, according to the report. During 2012 alone, this metric is expected to experience an uptick of 28 per cent and reach $11.8 billion.

Dale Schmidt, an industry analyst with IBISWorld, notes that the field's growth is attributable in part to its relatively small size.

"Additionally, the industry's low level of concentration is indicative of a relatively new industry; as the industry experienced rapid growth in the early part of the past decade, many new firms entered the industry to try and capitalize on this growth," Schmidt said in a recent statement.