Non-cash payments are recording a rapid growth, owing largely to developing markets. However, innovation if challenged by regulatory and technical complexities, according to a the World Payments Report 2018 by Capgemini and BNP Paribas.

Non-cash payments reported a compound annual growth rate (CAGR) of 10.1% in 2015-16. The World Payments Report 2018 expects the growth rate to increase to 12.7% through to 2021.

During 2015-16, the growth in non-cash payments was found to be led by Russia, India and China. Mature markets were found having a steady growth of over 7%.

In the coming five years, developing markets are expected to report CAGR of 21.6% driven by emerging Asia, forecasts the study.

By 2021, developing markets are expected to constitute nearly half of all non-cash payments across the globe, surpassing mature markets for the first time.

The study also found new technologies disrupting the payments market and BigTechs opening their e-wallets. In 2016, e-wallets contributed to 8.6% of non-cash payments, of which 71% were supported by BigTech firms.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, challenges still remain, with lack of interoperability between schemes, weak data and authorisation standardisation cited as some of the key impediments to adopting a real-time payments infrastructure.

In case of distributed ledger technology adoption, lack of interoperability and regulatory clarity were cited as the major challenges.

Capgemini CEO of financial services and member of the group executive board Anirban Bose said: “As demand for digital payments is strong, especially in developing markets, some banks may want to revisit their choice to not seek an anchor role in the new emerging payments ecosystem.

“With their significant market share in the payments industry and implementation of new technologies, banks are in a unique position to shape the marketplace. They can also create new revenue streams through innovative, collaborative relationships with FinTechs and active participation by the broader financial services community.”