15 December 2017
visit http://response.ncr.com

China overtakes UK in digital payment volume stakes

22 September 2016  |  6196 views  |  0 Outsourcing Strategies

China has overtaken the UK in digital payment volumes, helping to spur global growth to more than 10%, according to research from Capgemini and BNP Paribas.

Global non-cash volumes are projected to hit 426 billion in 2015, up from 387 billion in 2014, driven by strong economic growth in key developing countries, which saw digital payments up 16.7%, compared to six per cent for mature markets, although these still account for 70.9% of total volumes.

Other factors driving the move from cash include improved security measures such as EMV and biometrics, and government initiatives in places like India designed to encourage electronic payments. For the first time, China has surpassed the UK and South Korea in digital transaction volumes, taking fourth position among the top ten markets globally, behind the US, Eurozone and Brazil.

While digital payment volumes continue to grow at an impressive rate, the report highlights the challenges facing banks in the transaction banking market, where a host of factors - including lower fee income, lower interest income, pressure on FX service fees and the emergence of fintech rivals - is putting pressure on revenues.

Banks must adopt a "think digital" mindset to thrive in this environment, says Capgemini. Many already are, with 79% of executives surveyed for the report now viewing fintech firms as partners. And banks could have additional opportunities to further drive innovation in transaction banking by opening up their internal systems through.

Jean-Francois Denis, deputy global head, cash management, BNP Paribas, says: "While treasurers’ fundamental expectations have not changed over recent years - control, visibility on cash, risk management - corporates increasingly expect banks to digitalize support processes such as account management, data analytics, compliance tracking, and fraud detection and prevention. This calls for banks to accelerate their shift towards digitization and foster a more collaborative approach."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Digital finance could create 95 million new jobs in emerging economies - McKinsey

Digital finance could create 95 million new jobs in emerging economies - McKinsey

22 September 2016  |  8717 views  |  1 comments | 25 tweets | 28 linkedin
Visa takes on M-Pesa with Kenyan mobile payments service

Visa takes on M-Pesa with Kenyan mobile payments service

13 September 2016  |  10642 views  |  0 comments | 19 tweets | 18 linkedin
India's Unified Payments Interface goes live with 21 banks

India's Unified Payments Interface goes live with 21 banks

26 August 2016  |  14968 views  |  0 comments | 25 tweets | 26 linkedin
Singapore proposes new regulatory framework to handle payments innovation

Singapore proposes new regulatory framework to handle payments innovation

25 August 2016  |  9365 views  |  0 comments | 11 tweets | 13 linkedin
China and India drive non-cash payments growth

China and India drive non-cash payments growth

06 October 2015  |  9644 views  |  0 comments | 19 tweets | 12 linkedin
Payments industry challenged by soaring growth in non-cash transactions

Payments industry challenged by soaring growth in non-cash transactions

30 September 2014  |  14566 views  |  0 comments | 36 tweets | 19 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.niceactimize.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10292 views comments | 17 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
9557 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
9034 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7644 views comments | 20 tweets | 11 linkedin
Australian Government amends AML rules to cover digital currenciesAustralian Government amends AML rules to...
7257 views comments | 15 tweets | 24 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job