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In this fifteenth edition of the World Payments Report (WPR), we explore the industry’s progress toward a new ecosystem and offer navigational signposts for incumbents as they plan their journey.We scrutinize global non-cash transaction trends and examine the evolving regulatory landscape and its impact on the changing face of the payments industry.
Customer experience has become a priority for both regulators and industry players over the years, thanks to technological advances. The rise of alternative payment methods is catalyzing the growth of digital payments globally, reflecting the accelerated expansion of non-cash transaction volumes, with double-digit growth expected through 2022.
As the traditional value chain is disrupted, and the influence of leading-edge technology grows, banks globally are attempting to respond while meeting fast-changing customer preferences. Amid these challenges, firms tentatively tread the Open Banking path set by regulatory decree or market forces.
However, Open Banking adoption levels remain low, with banks facing operational and cultural obstacles that hinder implementation and acceptance. Nevertheless, banks will ultimately need to accept Open Banking practices to ensure viability and success within the new payments ecosystem.
In WPR 2018, we examined the market dynamics, enabling infrastructure, governance models, and customer demographics required to steer Open Banking success. A year later, it appears the market is preparing for a future state that leapfrogs Open Banking and focuses on player partnerships, data sharing, and strengths-based new roles.
While Open Banking acceptance remains lukewarm, the industry is advancing to a collaborative mode, which means payments players will need to prioritize strategies for success within new parameters.
Elements at the industry and firm levels are slowing the journey to the new payments ecosystem. However, banks that devise an ecosystem strategy based on their strengths and unique selling propositions are the ones most likely to remain competitive. On behalf of Capgemini’s subject matter experts across the globe, and the payments’ industry leaders who contributed to the report, we hope you find WPR 2019 to be an insightful read. If we can be of further assistance in helping you to better understand the tremendous growth opportunities and new models on the payments horizon, please reach out to us. We would be delighted to help you navigate the challenges and seize the significant opportunities of today’s dynamic payments environment.
Happy reading!
