Study: Global digital payments headed to 726 billion transactions by 2020
Emerging economies continue to drive global digital payment transactions — and momentum shows no signs of slowing.
Global digital payments volumes are predicted to increase by an average 10.9% through to 2020, reaching nearly 726 billion transactions, according to the “World Payments Report 2017,” a study from Capgemini and BNP Paribas.
According to the report, volume generated by emerging economies will grow by 19.6% — three-times the rate of mature economies. These increases are expected to be led by emerging Asia. Specifically, China and India are projected to grow 30.9% in volumes.
The emergence of a new payments ecosystem is driven by a number of converging factors. These include changing corporate and customer expectations for value-added services, and an increase in payments-enabling technologies, including mobility.
These are augmented by changes in the dynamic regulatory landscape, such as requirements of the Payment Initiation Service Providers (PSD2) compliance, which regulates credit transfers on behalf of clients; financial technology.
Despite increased adoption of digital payments, cash remains in the mainstream, especially for low-value transactions. For example, 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, the study reported.
“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. “Breakthrough technologies and significant industry advances, such as Open APIs, instant payments, blockchain, and regulatory standardization, will encourage collaboration.”
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