The payments study, which spanned 79 countries and was conducted by technical consultancy Global Insight, found that the annual number of electronic payment transactions is growing at a compounded annual rate (CAGR) of 12.9%, which is equal to four times the expected growth in real gross domestic product (GDP).

During the five-year period from 2004 to 2009, forecast volumes are expected to double across the world, with China and India doubling more quickly at a rate of every three and four years, respectively.

But the Eastern Europe and Asia/Pacific regions are forecast to lead the world in electronic payment transaction growth, predicted at 21.6% and 19.2% respectively, for the period of 2004 to 2009.

Other regions including the Middle East, are forecast to increase 15.9% and NAFTA (North American Free Trade Alliance) expected to grow 12.3%.

However, the study also shows that the use of paper cheques will continue to decline - around 20% of non-cash transactions were cheque-based in 2004 but this is expected to fall to just 10% in 2009.

ACI says the study provides banks, payment processors and retailers with a road map for the next decade to help plan their payments business strategies.

Jeffrey Hale, chief marketing officer at ACI, says: "Across the world, electronic payments represent a significant growth opportunity for banks, payments processors and retailers. In many regions, system capacity will need to double every three to five years, or faster, to keep pace with the increases in payments volumes. At the same time, payments providers are under pressure to lower their cost of doing business and better manage risk."