Friday 20th September, 2013

Global non-cash payments volumes are expected to top 333 billion transactions, according to the World Payments Report 2013 by Capgemini and RBS. The report shows that Central Europe, the Middle East, Africa (CEMEA) and Emerging Asia are leading the charge with growth in transaction volumes of more than 20 percent, while Latin America recorded growth (14.4 percent).

Mature markets still account for more than two-thirds of global non-cash transaction volumes. However, forecasts show that for all the growth in the surging economies of Asia and Latin America, it will still take at least 10 years for emerging markets to overtake mature markets in transaction volumes.

"The unabated rise of non-cash payments is a sign of the interconnected lives we live today. With estimates showing 8.5 percent growth in 2012 non-cash payment transactions, that’s nearly 47 transactions per year for every man, woman and child on the planet. In the developing markets, mobile payments are giving more people access to financial transactions, while customer-centric innovation has helped prepaid cards and virtual currency gain traction in the more developed markets," said Kevin Brown, Managing Director, Global Head of Transaction Services, RBS International Banking.

Debit and credit cards continue to be the most popular non-cash payment instruments, ahead of e- and m-payments. Industry estimates suggest online and mobile payments will grow at 18.1 percent and 58.5 percent respectively through 2014. E-payments are expected to reach a total of 34.8 billion transactions by 2014, alongside 28.9 billion mobile payment transactions in the same year.

"Reducing market risk and regulatory complexity continues to be a challenge for banks and other PSPs alike, particularly as regulations proliferate and the overlap between individual initiatives continues to increase,’ said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services."

He added: "PSPs can ‘cluster’ how they implement individual regulatory initiatives to take into account cascading effects across geographies, complementary reinforcement effects and competing effects."

In North America, most new regulation is focused on transparency and customer convenience. In Asia Pacific, the regulatory focus is on standardization and bringing new participants into the financial system. While in Europe, SEPA6 regulations are dominating the landscape as regulators concentrate on increasing competition and improving transparency.