top 10 payments trends

Payments Trends for 2016

2 Copyright © Capgemini 2015. All Rights Reserved

Payments Domain Trends 2016 | December 2015 | Financial Services

Front-end Innovation Continues to Gather Pace

Wearables

Closed loop

solutions &

Mobile Money

Contactless

Technologies

Mobile Wallets

and P2P apps

23.2% CAGR of Mobile

Payments Market

through 2020

USD 86

Billion

High-End Estimate

of Mobile P2P

Transactions

Volume in the

U.S.in 2018

Sources: Capgemini Financial Services Analysis, 2015; http://www.businessinsider.in/THE-PEER-TO-PEER-PAYMENTS-REPORT-The-exploding-market-for-

smartphone-apps-that-transfer-money/articleshow/47114852.cms



Regulators Will Focus On Innovation and

Competition

PSD II (Europe) aims to open up

the market to Third Party

Providers

RBI (India) has granted licenses

to establish payments banks to

drive financial inclusion

PSR (U.K.) aims to open up the

access of Faster Payment Service

to non-bank institutions

Sources: Capgemini Financial Services Analysis, 2015; World Payments Report 2015



Payments Processing Will Undergo

Transformation For Building Next-generation

Infrastructure

Non Banks like

Ripple

Open APIs

Payment Hubs

Payment

Infrastructure

Modernization

30,000 Number of APIs

Projected to Reach

by 2016

Sources: Capgemini Financial Services Analysis, 2015; World Payments Report, 2014



Implementation Of Immediate Payments

Systems Will Continue To Accelerate Globally

Demand for

Ubiquity

Overlay

Services

System

Modernization

Need to Remain

Competitive

>9 Immediate Payments

Systems Already

Implemented




Banks And Non-banks Will Focus More On

Applicability Of Blockchain Technology

Payment

System

Optimization

Growing Demand

For Crypto

Currencies

Willingness To

Adapt From

Banks

Importance For

Decentralized

Applications

$ 400 Million Global Blockchain market in

2019

Sources: Capgemini Financial Services Analysis, 2015; https://www.linkedin.com/pulse/bitcoin-bankers-deborah-baxley; http://www.medianama.com/2015/07/223-citibank-

cryptocurrency-citicoin/; World Payments Report 2015; http://qz.com/576671/banks-will-their-quintuple-spending-on-blockchain-by-2019/



Hidden Payments Volume Growth Will Further

Accelerate

Mobile Money Virtual Currencies

Closed

Loop/Cards/Mob

Apps

Digital Wallets

$ 24.5-40.9 bn Hidden Payments Estimated

Volume, 2014




Payment Service Providers Will Increase Focus

On Leveraging Insights And Data To Offer

Value-added Services

Segmentation-

based Offerings

Customer

Acquisitions

Loyalty

Programs

Sourcing &

Shipping

Membership

Rewards

Inventory

Management

Corporate Payments Retail Payments

$3

Billion

Membership in US

loyalty programs

increased by 26% from

2013-15

Sources: Capgemini Financial Services Analysis, 2015; https://www.colloquy.com/latest-news/2015-colloquy-loyalty-census/;

http://www.loyaltyandrewardsguide.com/technology/trend-alert-mobile-payments-to-innovate-rewards-programs



B2C And Corporate Payments Will Be Catalysts

That Will Drive Global Cross-border Payments

Volume In The Near Future

$1

Billion

Visa’s international

transaction revenue

grew by 21% in Q3 2015

$588

Billion

Global international

remittances expected

to grow by 1.3% in

2015

Global Trade

Customer Payments International

Remittances

Sources: Capgemini Financial Services Analysis, 2015; Visa Had $18 Billion Worth of Processed Transactions”, Robert Karr, Yahoo Finance, September 4, 2015



Payments Firms Are Making Increased

Investments In Security And Authentication

Measures

EMV Tokenization

Chip & Pin E2E Encryption

Biometrics Geo location

Tracking

Counterfeit

Measures

Mobile Secure

Location

3D Secure Real-Time

Analytics

$16.3

Billion

Total card fraud

losses worldwide in

2014

$5.9

Million

Total average cost

of data breaches to

involved payment

firms in 2014

Sources: Capgemini Financial Services Analysis, 2015; “Global Card Fraud Losses Reach $16.31 Billion — Will Exceed $35 Billion in 2020”, Nilson Report,

August 4, 2015; http://www.smartcardalliance.org/resources/pdf/CNP-WP-012414.pdf



Developing Economies Are Witnessing

Disruptive Innovation In Payments And Are

Leapfrogging The Developed Nations

Sources: Capgemini Financial Services Analysis, 2015; https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=2857;

http://www.mondatosummit.com/#Africa-overview/

Lack Of Access To

Traditional

Payments

Instruments

Higher Mobile

Penetration

Lack Of

Financial

Infrastructure

Regulatory

Measures Driving

Financial

Inclusion

http://www.mondatosummit.com/




The information contained in this presentation is proprietary.

© 2013 Capgemini. All rights reserved.

www.capgemini.com

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top 10 payments trends

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