All rights reserved. McKinsey Report: by 2020, #payments will generate $400B more per year. The only truly negative option is to do nothing. Source: MCKINSEY GLOBAL PAYMENTS REPORT 2020 STRAITS TIMES GRAPHICS 39% The estimated percentage of transactions in Singapore this year in which cash will be used, compared with 59 per cent in 2010. The decline in revenue and new entrants successfully leveraging market changes has banks and long-time players rethinking their approach. The report also highlights how cash usage varies greatly by region. With lockdowns imposed across many nations, cash usage dropped in step with severe demand-side shock. This year, McKinsey explored how companies can position themselves to capture pockets of growth stemming from the accelerating winds of change in global payments. At stake are $1 trillion in new global revenues by 2027. Sweden, the UK and the Netherlands are among the countries with the lowest cash transaction volumes. You also have the option to opt-out of these cookies. McKinsey expects revenue growth in global payments to turn negative. Here are the three key takeaways we got from reading the new report. But the crisis resulted in much more than a $140 billion decline. McKinsey 窶� The next frontier in Asia payments In our view, five fundamental themes are reshaping Asia窶冱 payments landscape (Exhibit 2). Given the high opportunity cost of maintaining legacy technology in the current economic climate, banks need to thoroughly evaluate their payment capabilities and how they can improve them. Our global payments presentation will showcase McKinsey's data-driven insights on industry dynamics and economics. The 2020 McKinsey Global Payments Report窶排eleased on 2 October窶派ighlights 窶和ccelerating winds of change in global payments窶� caused by the COVID-19 pandemic. Global Payments 2020: Fast Forward into the Future October 05, 2020 By Yann Sénant , Markus Ampenberger , Ankit Mathur , Inderpreet Batra , Jean Clavel , Stefan Dab , Alexander Drummond , Sushil Malhotra , Stanislas Nowicki , Prateek Roongta , Michael Strauß , Alejandro Tfeli , 窶ヲ In response to a reduction in cash use and in-person services, banks have accelerated the move to online banking by closing branches and ATMs. ATM availability worldwide has grown 11% annually (G4S, 2018), In Egypt, 80% of online sales are paid for with cash on delivery (G4S, 2018), White Paper "Virtually Irreplaceable: Cash as Public Infrastructure", White Paper "Keeping Cash: Assessing the Arguments about Cash and Crime". The World Payments Report 2020 from Capgemini is the leading source for data, trends and insights on global and regional non-cash payments, the key regulatory and industry initiatives (KRIIs), and today窶冱 dynamic payments environment. directly to learn more about what type of banking software will be perfect for your business needs. Our insights are also informed by ongoing dialogue with industry leaders and with McKinsey窶冱 global network of payments experts, and on our work with payments providers across Asia. Maintaining outdated infrastructure, managing upgrades, and rationalizing legacy technologies is expensive, and many banks face a significant challenge in the near to midterm if they do not optimize costs. This approach enables banks to rapidly expand their capabilities and maximize functionality without incurring high in-house development costs. One of them is the McKinsey offering 窶� this year the McKinsey report is titled Global Payments 2015: A Healthy Industry Confronts Disruption.. This year窶冱 research focuses on COVID-19's lasting impact on payments behavior and explores strategic Global payments revenue in the first six months of 2020 contracted 22 per cent, or $220 billion, from a year ago due to the impact of the Covid-19 pandemic, according to a new report by McKinsey & Company. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This despite the fact that cash in circulation has increased on a global scale by the largest percentage since the financial crisis 2008. By continuing to use the website you accept their use. For more information on how we store your data, please see our privacy policy. The 2020 McKinsey Global Payments Report Mc Kinsey & Company octubre 8, 2020 The public health crisis triggered by COVID-19 has had an impact on nearly all aspects of daily life for people across the globe, and has put the world economy on an uncertain footing. This report examines these trends and industry initiatives that will push the number of registered accounts well beyond a billion in 2020 and move us a step closer to a digital future for all. Although banks are the primary providers of payments services, most of them do not benefit from digital payment volumes soaring. These cookies will be stored in your browser only with your consent. Overall, in retail, the impact was not a decline Market disruption is increasing in the USD 1 trillion global financial services industry, according to the recent 窶廴cKinsey on Payments窶� report (McKinsey & Company, 2020). McKinsey窶冱 new research report, with insight on shifting consumer sentiment over a five-week timeframe of the global pandemic in 42 countries is an eye-opener. While some sectors have rebounded—such as retail, which has seen an overall shift towards online sales—electronic payments have risen, and cash use remains lower. This category only includes cookies that ensures basic functionalities and security features of the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. , we believe that understanding how disruptive trends affect the payments ecosystem is key to developing modern banking platforms and future-proofing our payments products. This model significantly expedites time to market for new payments products from years to months. We also use third-party cookies that help us analyze and understand how you use this website. 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