World Payments Report 2019
The World Payments Report 2019 from Capgemini 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.
This 15th edition analyzes the digital transformation across the global payments market as new market participants like BigTechs, emerging technologies, and changing customer expectation spur disruption.
Non-Cash Payments Volume
Global non-cash transaction grew at 12% to reach 539 billion during 2016-17. In WPR 2019, we estimate that global non-cash transaction volumes will record a CAGR of 14% during 2017-2022F. Developing markets are expected to boost the global growth rate of non-cash transaction volumes with a sustained CAGR of 23.5% during this period, while mature markets are expected to grow by a modest 7.1%. Europe, including the Eurozone, is expected to witness a stable growth of 8.5% over the next five years.
Cash Usage Analysis
In most countries, cash payments’ share of total payments volume is declining. However, cash in circulation (CIC) remains stable or up slightly over the past five years. Globally, CIC has increased from 4% to 7% annually over the last five years, despite lawmakers’ support of non-cash transactions. Interestingly, countries with the highest non-cash transactions volume also continue to be highly dependent on cash.
Key Regulatory and Industry Initiatives (KRIIs)
Interoperability and standardization have become a regulatory mantra amid disparate payments’ standards, systems, and scope of regulators. Globally, a broad range of watchdogs have taken or are planning initiatives to ensure uniformity – critical moves to sustain success as the new payments’ ecosystem coalesces.
Monetizing Quick-Win Solutions Will Help Banks Lead the New Payments Ecosystem
In this year’s report, we focused our analysis on business-model innovations and how incumbent firms need to revisit their existing business model and transform to win a leading position in the value chain. As banks are yet to wholeheartedly support Open Banking, we have provided recommendation on, how incumbents must unleash the potential of Open Banking and leverage suitable ecosystem-based business models . The report also covers strategies that will keep banks viable and focused on the future. The report also analyzes the state of Open Banking through our Payments Open Banking Assessment across 18 selected countries.