Payment enterprises are getting pushed to change as agility and efficiency become more important than ever before, as they work to compete with financial giants such as Amazon and Apple.
Across the world, payment volumes and prices have been reacting and responding to pressures.
Payments Around the World - International Financial Transactions
Asia-Pacific has the most transactions with 318.9 billion in 2021, followed by North America and Europe. Asia-Pacific surpassed both of these regions to take the lead.
As the demand for digitalized payments increases, companies are leaning towards cashless transactions. New entrants that offer these fee-free global alternatives are quickly gaining popularity, as per the survey conducted by Capgemini.
Nearly 30% of internet users make payments through Biotech organizations such as Facebook, Amazon, and Apple, among others. 50% use a challenger bank like NuBank or Chime. Some popular Indian challengers to established banks are Airtel Payments Bank (Airtel), Jio Payments Bank (Jio, an affiliate company for another online service provider called Jio), 811 (811 is a mobile wallet Target Cash Card), and Paytm Payments Bank (Paytm).
38% of patients got their cure for pandemics through banking and transferring money. "Direct account transfers" account for 68% of payment methods during worldwide health catastrophes.
Contactless (tap-to-pay) ranked as the second favorite as 64% said they frequently used this as a form of payment.
Alternative payment services are attracting a lot of attention, as consumers want to make transactions quickly, easily, and with positive customer service. According to predictions by IDC, by 2025 (less than five years away), the wallet-using population around the world will increase to 2 billion people or half of the population in that year.
Payments around the world are predicted to rise significantly in the next four years with transparency and automation increasing at a 51% CAGR. Payment providers can use technology and collaboration to combat increased risk with innovation.
With the recent COVID-19 lockout, 87% of CEOs believe they have a high risk of cyber threats. Cybercriminals are leveraging the exposed weaknesses in smartphone devices to perform hacks, financial fraud, and global terrorism. Payment providers are using new technology including IoT, biometrics for increased protection.
The Payments Transformation looks to be unavoidable as digitalization & customer-visible innovation are the main factors of bank CEOs' strategic ambitions for 2022.
In a survey, 60% of executives from financial institutions felt that cooperating with third-party companies would help them strengthen their enterprise services in addition to strengthening in-house capabilities.
From Pandemics to Contactless Payments
Buy Now Pay Later (BNPL) payment methods may be a possible payment winner as a result of COVID-19. COVID-19 has implications for the global economy, and more importantly the economies of relative laggards. Alternative financing methods grow more enticing when customers' incomes grow more limited; this may include BNPL installment and deferred payment options at an interest rate of zero percent. The digital revolution is leading to widespread adoption of BNPL payment methods even in countries that are trailing
Companies like Estel are changing the future of banking through a unique card-less Agency Banking system. Branchless banking use in emerging economies amid the pandemic will be revolutionized, given their work with this innovation. The card-less Agency Banking system requires less capital expenditure for banks and provides increased accessibility and functioning in a secure environment. 2020 is a time when technology has advanced to this level.
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