BCG Global Payments Report: urgent action required by payment leaders
Financial institutions must modernize their technologies promptly for long-term advantage. Key highlights:
- Total payments revenues: $1.6 trillion
- Expected annual revenue growth rate until 2027: 6.2%
- Projected growth rate for transaction revenue: 7.1%
- Projected growth rate for non-transaction revenue: 5.7%
- Factors causing slower revenue growth: changes in retail payments mix and macroeconomic factors
- Payments-focused fintechs contribute: $100 billion
- Over 90% of central banks actively experimenting with digital currencies; operational in 5-10 years
- Technological advancements and GenAI transforming payments industry
- Regulatory authorities increasing scrutiny on risk management and compliance practices
- M&A focus shifting towards capability-led moves, alternative payment methods, software vendors, value-added services, and loyalty
- Leaders must refresh strategy, revisit partnerships, and modernize tech infrastructure to navigate disruption and preserve shareholder value.
https://www.bcg.com/publications/2023/bcg-global-payments-report-2023
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