06/12/2024
In 2023, the global payments industry processed 3.4 trillion transactions worth $1.8 quadrillion, generating $2.4 trillion in revenue.
From 2018 to 2023, the industry grew by 7% annually, but growth is expected to slow to 5% per year over the next five years. By 2028, this slower growth could add $700 billion in revenue, bringing the total to $3.1 trillion about 35% of all banking revenue. This highlights the need for banks to invest in payment technologies to stay competitive with specialist players.
McKinsey & Company notes that while global payments are becoming easier for users, the systems behind them are growing more complex.This complexity challenges the ideal vision of global payments being safe, simple, fast, affordable, and universal.
The rise of instant payments has introduced what’s called the "Decoupled Era," where payments are increasingly separated from accounts. This has led to more players entering the market, fragmenting the value chain, adding complexity, and threatening the industry’s goals
