The World Payments Report 2020, prepared by Capgemini, just release last week. This 16th edition analyzes how the payments industry can respond to evolving retail and B2B customer expectations and highlights the need for payment firms to rapidly prioritize technology transformation in order to become digital masters and stay competitive. The report is the leading source for data, trends and insights on global and regional non-cash payments, the key regulatory and industry initiatives (KRIIs), and today’s dynamic payments environment.
Digital mastery is now essential for players grappling with deep-rooted complexities aggravated by COVID-19:
- Amid disruption, the payments industry is coming to groups with the digital shift of retail and B2B customers. The 2020 holy grail for payment firms lies in providing differentiated offerings that feature speed, convenience, and end-to-end customer experience.
- Abundant options and innovation are sparking competition, and as the market consolidates, revenue models and cost structures are being affected.
- As the payments horizon broadens, players move digital capabilities to the front burner to cook up engagement-led services and tasty ecosystem propositions, leaving undifferentiated incumbents with a bland diet.
COVID-19 interrupted other steady growth of global non-cash transaction volumes, although enthusiasm for digital payments may offset the decline:
- Global non-cash transaction volumes grew 14% (2018-19) to reach 708.5 billion – the highest surge in the past decade.
- Surpassing Europe and North America, the Asia-Pacific (APAC) region grew nearly 25% (2019) to become the non-cash transaction leader (243.6 billion), driven by the widespread adoption of mobile payments and digital wallets.
- COVID-19 aftershocks will tamp down global non-cash volumes, as 2019-2023 growth expectedly shrinks to 11.5% compared with our previous 16.4% projection.
Regulators work to instill trust, address non-cash payments risk amid unparalleled growth, as players collaborate to quell COVID-19 uncertainty:
- COVID-19 has triggered security awareness and safety efforts: Anti-Money Laundering Directive V (AMLD V), data protection, and cybersecurity are focused on payment ecosystem resilience.
- A unified industry frameworks to combat fraud, digital identity and authentication, is needed, especially in open networks.
The report is available HERE.
Publié le 12 octobre 2020