Digital Payments Continue To Rise Globally: Study
Global digital payments volumes are predicted to increase by an average 10.9 percent through to 2020, reaching nearly 726 billion transactions, according to the World Payments Report 2017released by Capgemini and BNP Paribas.
The report estimates that volumes generated by emerging economies will grow by 19.6 percent or three times the rate of mature economies. Emerging Asia, led by China and India, is projected to grow 30.9 percent in volumes. Worldwide non-cash wholesale transactions by corporates, mid-sized enterprises, and public authorities are estimated to record a CAGR of 6.5 percent from 2015 – 2020, or more than 122-billion wholesale transactions.
Global non-cash transaction volumes grew 11.2 percent to reach 433.1 billion during 2014-2015, the highest growth in a decade. Developing markets drove this growth with a 21.6 percent increase. Mature markets increased by 6.8 percent, a nominal rise of over 6 percent in 2014.
Despite increased adoption of digital payments, cash remains in the mainstream, especially for low-value transactions. This year’s WPR states that mobility, connected homes, entertainment, and media are expected to boost non-cash transactions in the future, as will alternate channels, including contactless, wearables, and augmented reality.
Increased digitization of corporate B2B payments is affecting regional trends. In Mature APAC markets, small and medium-sized businesses are using digital invoicing, virtual cards, and cloud-based finance and accounting. In Emerging Asia, charge cards are popular among corporates to simplify and secure supply-chain payments.
The report highlights the emergence of a new payments ecosystem driven by a number of converging factors. The dynamic regulatory landscape including the requirements of PSD2 compliance, FinTechs, changing corporate and customer expectations for value-added services, and an increase in payments-enabling technologies represent some of the forces creating change.
“Within this new and dynamic ecosystem, payments industry participants must strategically reassess their roles,” said Anirban Bose, Head of Global Banking and Capital Markets for Capgemini. “Banks must embrace this opportunity to enhance their offerings in collaboration with FinTechs and third-party developers. Breakthrough technologies and significant industry advances, such as Open APIs, instant payments, the blockchain, and regulatory standardization, will encourage collaboration.”
- Study Shows Digital Trust Gap Between Companies And Consumers
- Oracle To Showcase Its SaaS Innovation With AI In India
- Travel, E-Com, Utility Lead To India's Digital Commerce Boom: Study
- Cisco Announces A Slew Of Initiatives To Accelerate Digitization In India
- 6 Key Trends For Artificial Intelligence Powering The Investment Sector
- AR-VR To Become Enterprise Reality In 3-4 Years: Study
- Focus On Visibility To Prevent Cyber Threat, Says Skybox Exec
- Using Digital Transformation To Secure Your Bank Locker
- Organizations Must Prepare for Data Security Risks To Survive
- Gartner Identifies 7 Technologies For The Digital Workplace