1. Chapter 5 allows you to discover your own stories and to narrow the results to a particular segment and revenue type. As soon as this statistic is updated, you will immediately be notified via e-mail. At the same time, the global payments economy has been significantly affected, with an estimated 25% to 30% decrease in cross-border consumer to business payments. More than a mission statement: How the 5Ps embed purpose to deliver value, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. However, given already-low margins in Europe (after the recent imposition of interchange-fee limits) these new challengers are less likely to affect pricing. A key element of SWIFT gpi is its track-and-trace capability that lets you see where a payment is at any given moment. B2B cross-border revenues are expected to grow at a tepid 3 percent CAGR for the next five years. The Global Payments Report 2019 revealed revenues from global payments amounted to $1.9 trillion, while transaction fee growth stagnated as a result of competitive … In fact, the survey found that 37% of corporates were planning to spend $100,000 (£77,676) or more on payments technology over the next 12 months. Although nearly three-fourths of APAC’s growth will come from China, growth rates in India and Indonesia (9 percent CAGR for each) are expected to outpace China’s growth rate of 7 percent. At roughly $605 billion of revenue, mainland China is the single-largest contributing country to global payments revenues, surpassing the United States by more than $100 billion and comprising two-thirds of overall APAC revenue (Exhibit 2). The high growth rates make these segments very attractive for new entrants. This CPMI report provides technical background to the main policy report that it accompanies. Enhancing cross-border payments has become an important global policy agenda, to counter fragmentation and to facilitate continued orderly functioning of the international trade and financial system. Our forecasts assume global GDP growth averaging 5 percent annually from 2018 to 2023, based on projections from the Economist Intelligence Unit. In some cases, nontraditional players leverage payments to increase customer engagement and either expand existing offerings (for example, mobile wallet GrabPay) or establish a foundation for a broader-based model (for example, Stripe and Square). In addition, the emergence of large ecosystem players, like Alipay and WeChat Pay, has boosted the growth of mobile payments. facts. Roadmap for enhancing cross-border payments The FSB laid out a roadmap for tackling inefficiencies in cross-border payments. All in all, despite the size and strong underlying momentum of China’s payments market, it is not easy for nondomestic competitors to play a role in it. From the global pandemic to trade wars, the Cross Border Payment Industry has continued to innovate and thrive in 2020. Cross-border payment challenges Cross-border payments are intrinsically inefficient because there is not one single ubiquitous global payment system. Western Union, a global leader in cross-border, cross-currency money movement and payments, announced it has expanded real-time digital payout … So … This result marks a return to growth following a 2 percent decline in 2017. Are you interested in testing our corporate solutions? Learn more about how Statista can support your business. 1 Electronic payments transactions have been growing at a staggering rate in the region—upward of 15 percent annually, more than 2.5 times the rate of GDP growth. On the other hand, in EMEA, commercial payments now account for a majority of the revenue (52 percent, up from 49 percent in 2013). Cross-border payments are vital to the overall global payments infrastructure. Statista. Support the digitization of Government payments as part of cross-cutting work in areas like Social Protection, eGovernment and Public Financial Management reforms. The demand for fast, efficient and transparent cross-border payments is higher today than ever before. Several long-standing trends were reestablished, offsetting 2017 outliers—notably, Latin America’s return to above-average growth. SWIFT gpi is a first step in solving this longstanding cross-border payments challenge because it covers the interbank portion of the transaction flow. Accenture. The Federal Reserve recently conducted a review of the current cross-border payments landscape to better understand developments and ongoing challenges. Learn about Global Panel of Industry Experts: Webinar Discussion Topics to Include: •Global Regulations […] In part two of our three-part series on 2019 B2B payment trends, the focus is on the promising future for cross-border payments. Indeed, a large share of China’s revenues is derived from liquidity, which is somewhat shielded from competition as inaccessible to nonbank service providers—and most likely to foreign bank entrants as well. Cross-border Payments on Blockchain Enabling Business-to-Business and Person-to-Person payments across borders on vendor blockchain-based payment rails Business-to-Business Person-to-Person Low-Cost 40–80% reduction in transaction costs (8% of transfer today) Near Real-Time 4-6 seconds average velocity of money (2-3 days today) Secure Interest income on current accounts is estimated to have provided roughly one-fifth of US payments revenue in 2018, the lowest share among the four primary regions. 25 November, 2020. The estimated 2018 global cross-border-payments revenue was $230 billion, a 4 percent increase from 2017 and slightly below nominal GDP (Exhibit 3). Enhancing cross-border payments is a G20 priority during the Saudi Arabian Presidency. In, Accenture. The rise of potential global so-called ‘stablecoins’ such as Facebook’s proposed Libra has further increased regulators’ interest in cross-border matters. International payments have been a crucial element in the growth and sustainability behind today’s global economy. While this growth rate is unsustainable over the long term, it is projected to remain fairly high at a 14 percent CAGR for the next five years, well above GDP growth, based on our analysis of historical trends and projected macroeconomic growth in these countries. Payments-revenue growth in Europe, in contrast with North America, has remained sluggish and below GDP growth, continuing the trend of the past two to three years (Europe comprises roughly 90 percent of the activity in Africa, Europe, and the Middle East [EMEA]). In Asia as well, account-to-account and credit-card fees per transaction are already comparable to those in developed countries and are not expected to undergo major shifts. The real issue is bringing together global ambitions with the realities of operating under local conditions and regulations, and this practical perspective is indispensable. Cross-border revenues were revised upward by approximately $15 billion compared with the 2018 Global Payments Map, incorporating various enhancements, including margin updates for intra–European Union flows and revised C2B and B2C flows and revenue based on new insights. The industry has developed SWIFT gpi, as the new standard in global payments. Please click "Accept" to help us improve its usefulness with additional cookies. The demand for fast, efficient and transparent cross-border payments is higher today than ever before. If many of the underlying trends (for example, rapid growth in electronic transactions) in the two locations are similar, the European picture is dominated by the further weakening of the interest-rate environment, with negative interbank rates having reappeared in the eurozone. Published by Jennifer Rudden, Nov 6, 2020 This statistic presents the value of cross-border payments worldwide from 2016 to 2022, by type. A successful mechanism for cross-border payments is essential for global economic growth. Nearly half of the 2018 growth stemmed from C2B and B2C cross-border payments, despite the fact that these payments represented only around 25 percent of the revenue, in absolute terms. Global revenue reached $1.9 trillion in 2018, reflecting 6 percent growth. Although it remains the slowest growing of the four primary regions, Europe has established a somewhat heartening revenue trend, with consistent growth in the region (in contrast to the contraction experienced in the first half of the decade). New, Figures and insights about the advertising and media world, Industry Outlook The industry standard for global payments data. Learn more about cookies, Opens in new Following a period of tepid growth between 2009 and 2013 (including two years of post-crisis declines), US credit-card balances have resumed an upward trend, increasing by more than 4 percent consistently for the past four years. Following a year of unprecedented, double-digit growth in 2017, global payments returned to its established pattern of steady yet strong performance. This and the cross-border-payments solution by TransferWise, an online money-transfer system based on peer-to-peer matching, are examples of solutions that are competing with traditional correspondent banking. Press enter to select and open the results on a new page. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook The industry standard for global payments data. As technology offers evermore payment options and globalisation continues, it is little wonder that treasurers are increasingly looking to upgrade their cross-border payment processes. There will, of course, continue to be further differences by region and segment. Chart. Western Union, a global leader in cross-border, cross-currency money movement and payments, announced it has expanded real-time digital payout … Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. Trade flows as a percentage of global GDP have remained stable over this period. A paid subscription is required for full access. But while new initiatives and payments technology innovations have emerged in recent years to move cross-border payments forward, multiple obstacles remain in place and new ones are quickly becoming more apparent. In 2018, estimated C2B and B2C cross-border revenues were $37 billion and $18 billion, respectively. The first is strong growth in account-liquidity revenue at a 7 percent CAGR. Please try again later. cookies, global payments-revenue growth rate of 11 percent in 2017, McKinsey_Website_Accessibility@mckinsey.com. Update, Insights into the world's most important technology markets, Advertising & Media Outlook FinTechs are expected to account for 13.3 percent of cross-border B2B transfer value by 2020, totaling $29 trillion, a nearly 6 percent increase from 2017 levels. By customer segment, retail payments are expected to fuel growth in the Americas, while commercial payments are expected to predominate in APAC and EMEA, extending the current revenue mix in the regions. Global Cross-Border Payment Market Research Report 2019-2025 has complete details about market of industry, analysis and current trends. Another important consideration when you’re processing cross-border payments is how money is settled into your account. This is primarily fueled by the increase in volumes in countries like China and India, which together hold about one-third of global account balances and for which GDP growth is expected to be higher than the global average. As a result, net interest income on account balances in Western Europe has been declining for the past six years, falling by nearly 40 percent over this period. The rate of growth in electronic payments transactions has been nearly twice the GDP growth rate, propelled by the e- and m-commerce boom—as well as the continued shift away from cash and checks. dollars)." Mobile payments transactions grew at a 123 percent CAGR in China from 2013 to 2018 and, based on data published by the People’s Bank of China, are estimated to have exceeded 300 billion (or roughly 210 transactions per capita) in 2018. Cross-border payments network Ripple (XRP) announced that it had become part of the ISO 20022 Standards Body, becoming its first member focused on distributed ledger technology (DLT). The underlying developments are impressive. Getty. Global Panel of Industry Experts: Webinar Discussion Topics to Include: •Global Regulations […] However, the industry remains confident that the post-pandemic world will still see the cross-border payments sphere continuing its rapid evolution. We strive to provide individuals with disabilities equal access to our website. Please authenticate by going to "My account" → "Administration". Low volume does not imply lower economic value for providers: the average fee on a large-value transaction is nearly eight times that of an ACH transaction. International payments have been a crucial element in the growth and sustainability behind today’s global economy. The task force’s co-chairs will unveil this ambitious roadmap, and kick-off a public consultation with users, innovators, regulators, and policymakers to further refine the plan. Chart. This growth rate is slightly above the expected global GDP growth rate of 5 percent, the result of a combination of factors. Our outlook would likely change with a shift in the global macroeconomic climate. Enhancing cross-border payments is a G20 priority during the Saudi Arabian Presidency. You can only download this statistic as a Premium user. This feature is limited to our corporate solutions. Notably, 95 percent of liquidity-revenue growth stems from higher balances—a source more predictable than margin changes, given the volatile interest-rate environment. In North America, payments revenues have been growing two to three percentage points faster than GDP has for the past four years because of a combination of interest-margin expansion and rapid transaction growth. The second factor supporting payments-revenue growth is the increase in electronic payments transactions, especially in emerging countries. Use minimal essential In 2015, the payments constituted 20 percent of the entire transactions in the payments industry, generating 50 percent of transaction revenues. Latin America was the fastest-growing region in revenue terms, at 10 percent, in 2018. Ideally, you want to get paid as quickly as possible in whichever currency you prefer. In 2018, the estimated account-liquidity-related revenue in China was $410 billion, two-thirds of which was derived from the commercial side. As the Head of Product in leading global payments network Thunes , he is set to support the business through its next phase of global expansion. In Western Europe, which accounts for approximately 70 percent of the EMEA payments-revenue pool, the reasons behind the increase in commercial-payments share are twofold. This article focuses on some of the surprises and key takeaways emerging from McKinsey’s 2019 Global Payments Report (see sidebar, “McKinsey Global Payments Report restatement”). 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