The Capgemini Research Institute's recently published World Payments Report reveals that the global volume of non-cash transactions is projected to reach 1.3 trillion by 2023. The report predicts that this figure will further increase to 2.3 trillion by 2027, with digital payment schemes driving this growth. The Asia Pacific region is expected to experience the highest growth rate at 19.8%, followed by Europe at 10.7%, and North America at 6.5% by 2027.

The impact of digital payment infrastructure advancements, regulatory changes, and open banking in transforming payment methods, are highlighted in the report. It is projected that new payment methods such as instant payments, e-money, digital wallets, account-to-account, and QR code payments will constitute approximately 30% of the total transaction volume by 2027. Traditional non-cash payments, including checks, direct debits, cards, and credit transfers, will make up the remaining 70% of non-cash transactions.

The report also emphasizes the growing demand for cash management services (CMS) due to factors such as increasing global trade, supply chain disruptions, rising risks related to geopolitics and cybersecurity, and inflation. However, the current CMS offerings face challenges, including issues with dispute negligence, poor credit risk assessment, delayed or duplicate payment processing, and legacy infrastructure barriers. To overcome these challenges, the report suggests strategic partnerships between banks and corporate clients to reduce the threat of disintermediation by FinTechs and PayTechs.

However, compliance with regulations, such as ISO20022 and SWIFT global payments initiatives, poses constraints on payment service providers, limiting their investments in future innovations.

By addressing these challenges, the industry can optimize digital payment solutions and foster innovation for the benefit of businesses and consumers, states the report