Description

The world of transaction banking and payments is being transformed. Three forces are driving the pace and path of transformation: technological advances, shifting customer expectations and behaviors, and regulatory changes. These forces, in turn, are triggering a competitive rebalancing among incumbent banks, digital giants, fintech startups, card networks, consumers, and merchants. Payments continue to be one of the most important and fastest-growing areas of the financial services sector worldwide. In 2016, the payments business overall, including balances on current accounts, totaled $1.6 trillion. In 2016, the global payments industry accounted for 34% of overall banking revenues—up from 27% just five years earlier. For the next five years, annual growth will average 7%, making payments a $2 trillion dollar industry by 2020, according to McKinsey’s latest Global Payments Map data as emerging markets continue to grow and cashless transactions become more widespread. Data indicates that emerging markets represent the majority of all payments revenue globally with China and India being the leaders.