Another thought-provoking World Payments Report from Capgemini, highlighting some of the core trends across the payments landscape. One of the significant findings of the report is around mobile transacting, where it is revealed that “nearly 45% of consumers frequently use mobile wallets to make payments (>20 transactions a year) up from 23% in the 2020 poll”.
Other themes examined and highlighted in the report include:
Next-gen payments and payment methods driving growth: Looking specifically at the impact of BNPL schemes, crypto transacting and further cannibalisation of cash into digital payment methods. There are significant differences across regions regarding payment growth, with APAC leading with an expected increase of 28% CAGR 2020-2025. In Europe, mobile payments fuel the growth of 13% for the same period.
Creaking legacy payment infrastructure: As payment volumes and payment method grow across the globe, the existing networks and rails are feeling the strain. “c.55% of the surveyed executives said their technology investment priorities were payments infrastructure modernisation (real-time payment system implementation, API integration, ISO 20022 migration, cloud transformation)” All of these investments are not just necessary to support the overall resilience of the infrastructure, but also help to keep the sector competitive
Innovation and Safety the Regulators conundrum: Many PSPs and payment orchestrators have benefited from the balanced approach implied by the key regulatory and industry initiatives (KRIIs), all of which are designed to enable innovation and well as maintaining integrity. “since tracking KRIIs, regulators supported balanced action across all primary objectives (risk reduction, standardisation, competition and transparency, innovation) to maintain equilibrium within the payments landscape.”
For more detailed insights, please download the full report here.
