Payments trends 2020: Mastering a dynamic market The dynamic payments industry continues to expand and evolve, with digital payment vehicles and transaction volumes growing across the globe. By 2020, the global payments industry will generate an estimated £2.2 trillion in revenue. This year窶冱 research focuses on COVID-19's lasting impact on payments behavior and explores strategic For more information on how we store your data, please see our privacy policy. Banks that don’t have the capacity to invest in a full payments technology stack developed in-house can still offer top-of-the-line services to their customers by outsourcing select services. Given the high opportunity cost of maintaining legacy technology in the current economic climate, banks need to thoroughly evaluate their payment capabilities and how they can improve them. However, McKinsey observes, the move from cash to e-payments will probably continue, especially in developing economies. After an initial spike in cash withdrawals ahead of lockdowns observed in Germany and the United States, concerns around the risk of contracting COVID-19 from high-traffic ATMs and the refusal of some merchants to accept cash (in spite of it being legal tender) pushed consumers towards e-payment options. Since June, the top four banks In Australia have removed over 2000 ATMs and closed 175 physical branches. They can then seamlessly offer services such as cross-border payments, currency exchange, and payments clearing to their customers. In the current environment, most of those are not delivering and are not expected to rebound soon. Different operational models can help banks leverage technology to enable new services such as instant payments and open banking. Join the Cash Matters community and weâll keep you posted about the latest developments in cash happening around the globe. Four EPIC Global Payments Trends: Do read the BCG-Google report for full details, but following is a quick snapshot of the 4 global payments trends that will continue to drive the payments industry in the coming years. ATM availability worldwide has grown 11% annually (G4S, 2018), In Egypt, 80% of online sales are paid for with cash on delivery (G4S, 2018), White Paper "Virtually Irreplaceable: Cash as Public Infrastructure", White Paper "Keeping Cash: Assessing the Arguments about Cash and Crime". The physical shift was complemented by a welcome and fundamental shift in the adoption of technologies. directly to learn more about what type of banking software will be perfect for your business needs. McKinsey believes that banks can reach an acceptable profitability level if they achieve cost improvements upwards of 30%. Payments also take up a significant part of banks’ operating cost base, representing up to 40% in some cases. The World Payments Report 2020 from Capgemini 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窶冱 dynamic payments environment. Tweet This While interest in blockchain and distributed ledger solutions was already under scrutiny a year ago as being over-hyped, many experts like McKinsey still postulated that the technology would be a significant factor in the future of payments in particular and banking in general. PaaS providers continuously work on their services, meaning that banks receive frequent product updates and upgrades without disproportionate maintenance investment. At. Three Key Takeaways From the 2020 Mckinsey Global Payments Report McKinsey projects that the 2020 global payments revenue will be 7% lower than in 2019. We also use third-party cookies that help us analyze and understand how you use this website. 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