Summary of Global Payments 2017

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Global Payments 2017 summary

Rating

8 Overall

8 Applicability

8 Innovation

8 Style

Recommendation

As digital technology advances, established banks face competition from both upstart fintechs and giant companies seeking to eat into banks’ lucrative payments business. While these newcomers may have the edge on technology, they lack the prized client relationships that banks enjoy. This informative article from Boston Consulting Group professionals lays out the global payment system landscape and offers broad suggestions for banks seeking to remain competitive. getAbstract recommends this report’s authoritative insights to bank executives and technology professionals interested in the evolving global payment system environment.

In this summary, you will learn

  • How competition from fintechs and digital giants could affect banks’ payments business in the future;
  • Where cashless payment systems are growing rapidly, and where they are stalling; and
  • What banks can do to grow in the increasingly competitive payment system environment.
 

About the Authors

Mohammed Badi et al. are professionals with the Boston Consulting Group.

 

Summary

While banks’ traditional strengths in the global corporate and retail payments business, such as trusted client relationships, remain intact, digital technology is now firmly entrenched in those payment systems. It is no longer necessary for digital upstarts to maintain a bricks-and-mortar presence or product assortment to eat into banks’ turf. The stakes here are high: In 2016, global payments activity reached $1.2 trillion, a figure poised to grow by $900 billion by 2026, as digital payment systems expand and developing countries become more active in payments. But challenges also await as cashless transactions gain ground. In Europe, the number of cashless transactions per capita is high in some Nordic countries but low in currency-loving nations like Italy and Spain. In North America, fraud remains a threat, as a robust digital payment environment continues to grow. Latin America also has a thriving digital payment set-up and, in China, nonbank competitors have made headway into this business hotbed.

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