Non-Cash Transaction Volume Analysis

Non-Cash Transaction Volume Analysis

  • Trends & Vision

Looking through 2020, we project that global payments growth will increase on average by 10.9% with emerging economies growing at 19.6%. Emerging economies are expected to grow at thrice the growth rate of mature economies with Emerging Asia led by China and India projected to grow at 30.9%.

2014-2015 Actual growth rates

  • Global non-cash transaction volumes grew 11.2% during 2014–2015 to reach 433.1 billion, the highest growth of the past decade.
  • Growth driven by developing markets, which recorded a 21.6% increase in 2015 while mature markets grew by 6.8%, a nominal rise over the 6% recorded in 2014.

Debit cards, credit transfers lead digital instruments; global check use declines

  • Debit cards accounted for the highest share (46.7%) of global on-cash transactions followed by credit cards with 19.5% in 2015.
  • Although the share of cash in the total payment volumes is declining in the majority of countries, cash in circulation (CIC) remained stable or increased slightly over the past five years.

Internet of Things (IoT) & blockchain are EXPECTED TO TRANSFORM the landscape as data becomes central to payments

  • Mobility, connected homes, entertainment, and media expected to significantly augment volumes of non-cash transactions.
  • Today’s experimental mobile wallets and P2P payment schemes are using blockchain technology however they may not necessarily succeed.

Alternate channels (contactless, wearables, and augmented reality), modern authentication & authorisation will further spur mobile payments

  • E-and m-payments are expected to take a significant share of 32% of the total global non-cash transactions volumes.
  • By 2019, it is estimated that about half of credit or debit card transactions will be made online or through a mobile phone.

Corporate adoption of digital payments pushes growth of wholesale non-cash transactions

  • Increased digitization of corporate B2B payments affecting regional trends.
  • In mature APAC markets, small & mid-size businesses are using digital invoicing, virtual cards, and cloud-based finance & accounting to process and receive payments quickly.
  • In Emerging Asia, charge cards are popular among corporates. And commercial cards are increasingly used to simplify and secure supply-chain payments.

 

Interested to discover the full report? Click here to download it.