Coronavirus outbreak accelerates rate of payments innovation
Customers are migrating away from cash as affinity for digital payments grows, according to research by Capgemini.
The company surveyed more than 8,600 consumers. An additional online survey to banks, FinTechs, payment services providers, and corporates provided data from 235 respondents and 45 executive interviews were conducted with banks, payments firms, card scheme firms, technology service providers, and retailers.
The move towards more non-cash transactions is being driven by increasing smartphone usage, booming e-commerce, digital wallet adoption and mobile/QR payments, with a predicted growth rate of 12% between 2019-2023.
Global non-cash transactions climbed by almost 14% from 2018-19, reaching 708.5 billion transactions – the highest growth rate recorded in a decade. As consumers shift away from notes and coins, they are turning to digital services. 30% are using a BigTech for payment services and 50% are using a challenger bank for some payments.
“Covid-19 has accelerated the rate of innovation within the payments space to quickly form the ‘next normal,’ requiring payments firms to be digital masters almost overnight,” says Anirban Bose, CEO at Capgemini’s Financial Services and Group Executive Board member.
“Now more than ever, payments providers need to deliver differentiated offerings that emphasise speed, convenience, and a superb end-to-end customer experience.”
“Currently, we are seeing visionary banks and payments firms diligently prioritising technology transformation and actively adopting a ‘curate and collaborate’ approach by teaming with agile new players to create more nimble organisations.”
