Digital Payments To Hit $726 Billion By 2020
The companies in the field of cashless payment system are cashing in on the continuing global pivot toward cashless payments.
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New age noncash payment technology, payment processing system and improving customer experience in real life is pivotal toward growth of cashless payments. The online/electronic payment transactions gaining more acceptances in 21st century.
The companies in the field of cashless payment system are cashing in on the continuing global pivot toward cashless payments. Most of the companies in the cashless payments are well positioned in the Asian emerging market to sustain the future cashless transactions.
As per the world payment report 2017, emerging markets are leading the rise of digital payments, according to a research done by Capgemini & BNP Paribas predicts that the number of these transactions will reach 726 billion annually in 2020.
The research forecasts volumes of digital transaction in emerging markets will grow 3 times as fast as those in developed economies. This follows the trend that saw digital payments in developing countries expand 21.6 per cent in 2015 vs a year earlier. In contrast, mature markets grew at a more inactive 6.8 per cent over the same period.
It is expected that China & India will lead growth in non-cash payments in Asia, which will increase by 31 per cent by 2020.
The global payments land-scape is evolving at an exponential pace. The last two years have witnessed heightened activity with some of the major shifts being observed in the global landscape:
- The ongoing digital & technology revolution, led by the ever increasing penetration of smart phones & internet on mobile, has revolutionsed digital payments.
- The payments space has witnessed the entry of several non-banking institutions offering payment services & solutions.
- Customers are becoming more demanding and expect instant and one-touch payment solutions.
- Finally, there have been several progressive changes in the regulatory framework.
The payment landscape in India also, has mirrored these developments, with the digital payments displaying an exponential growth after demonetization in November 2016. The advantage of the situation was grasped by the e-commerce companies followed by emergence of digital wallet companies. In Indian context digital payment are expected to hit $500 billion by 2020 according to the report of BCG. As revealed by the report, by 2020, non-cash (includes cheques, demand drafts, net-banking, credit/debit cards, mobile wallets and UPI) contribution in the consumer payments segment will double to 40 per cent.
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