On Tuesday, October 16th 2018, Capgemini and BNP Paribas published the 2018 World Payments Report and found that non-cash transactions are on the rise.
Since we know from recent reports that cash use and cash demand is also increasing, readers should not be too hasty in concluding that cash will disappear as non-cash transactions grow. There is still no electronic or digital payment method that can replace resilient cash.
However, there is a lot to learn from the insight into global and regional non-cash payments. Asia's emerging market is projected to lead non-cash transactions with a 28.8% CACG.
- Global non-cash transaction volumes grew at 10.1% in 2016 to reach 482.6 billion.
- Non-cash transactions are estimated to accelerate at a compound annual growth rate (CAGR) of 12.7% globally with emerging markets growing at 21.6% from 2016-2021.
- Global electronic wallet (e-wallet) transaction volumes are estimated to be about 41.8 billion in 2016, comprising almost 8.6% of all non-cash transactions.
- There is no one-size-fits-al strategy that can help with payments evolution of a market.
The report offers an in-depth analysis of the benefits of non-cash transactions but offers very little, if anything, about the benefits of cash transactions.
“As banks seek an anchor role in the new payments ecosystem, they need to identify the most qualified FinTech partners on complementary service and value to maximize effective collaboration.”
The World Payments Report 2018 from Capgemini and BNP Paribas 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. It explores how emerging technologies can help banks become anchors of a new payments ecosystem and offer new value-added services to customers, including corporate treasurers.
Regarding methodology, the World Payments Report primarily bases its findings on executive interviews and an online survey distributed to industry participants across banks and non bank FSIs in June 2018.
A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations.
LIVE Twiter Chat: 'Enabling the New Payments Ecosystem' Tuesday October 16th, 2018 from 10am ET
- Q1. How are emerging technologies transforming digital payments?
- Q2. What is the impact of #BigTechs entering the payments industry?
- Q3. How is regulation impacting the enablement of the new payments ecosystem?
- Q4. Are traditional financial services firms subject to more regulation scrutiny than #FinTechs and #BigTechs?
- Q5. How is #OpenBanking impacting the payments landscape for banks and incumbents?
- Q6. How do you think incumbents have responded to the accelerated disruption in the payments industry?
- Q7. What emerging technologies are pivotal for banks to orchestrate an innovation ecosystem?
- Q8. What are the challenges hindering the accelerated development of payment ecosystems?
- Q9. What value-added services do banks need to offer as part of their ecosystems in collaboration with other industry stakeholders?
- Q10. How should banks redefine their roles in the increasingly complex payments landscape?
- Bill Sullivan @WFSULLIVAN3