Global Non-Cash Payments Expected to Top 333 Billion Says Capgemini and RBS World Payments Report 2013

Global Non-Cash Payments Expected to Top 333 Billion Says Capgemini and RBS 
World Payments Report 2013 
Strong Growth in Non-Cash Transactions Signals Two-Speed Recovery for
Global Payments Industry 
DUBAI, UNITED ARAB EMIRATES and PARIS, FRANCE and LONDON, UNITED
KINGDOM  -- (Marketwired) -- 09/16/13 --  Global non-cash payments
volumes are expected to top 333 billion transactions in 2012 after
transactions grew by 8.8 percent in 2011, according to the latest
available data from the World Payments Report 2013[1] published by
Capgemini and RBS. 
Central Europe, the Middle East, Africa (CEMEA) and Emerging Asia are
leading the charge with growth in transaction volumes of more than 20
percent, while Latin America recorded growth of 14.4 percent. Growth
in these emerging economies outpaced that of the developed markets of
North America, Europe and Mature Asia[2], which recorded single digit
growth rates, though mature markets still account for more than
two-thirds of global non-cash transaction volumes with a 76.9 percent
share. Forecasts show, however, that for all the growth in the
surging economies of Asia and Latin America, it will still take at
least 10 years for emerging markets to overtake mature markets in
transaction volumes.  
"The unabated rise of non-cash payments is a sign of the
interconnected lives we live today. With estimates showing 8.5
percent growth in 2012 non-cash payment transactions, that's nearly
47 transactions per year for every man, woman and child on the
planet. In the developing markets, mobile payments are giving more
people access to financial transactions, while customer-centric
innovation has helped prepaid cards and virtual currency gain
traction in the more developed markets," said Kevin Brown, Managing
Director, Global Head of Transaction Services, RBS International
Banking. 
Debit and Credit Cards Still Leading Electronic and Mobile Payments 
Debit and credit cards continue to be the most popular non-cash
payment instruments, ahead of e- and m-payments[3]. Debit card use
grew by 15.8 percent (to 124 billion transactions) globally during
2011[4] and credit cards grew by 12.3 percent (to 57 billion
transactions). Industry estimates suggest online and mobile payments
will grow at 18.1 percent and 58.5 percent respectively through 2014.
E-payments are expected to reach a total of 34.8 billion transactions
by 2014, alongside 28.9 billion mobile payment transactions in the
same year. However, the World Payments Report 2013 raises some
important questions about the veracity of these estimates.  
A statistical 'black hole'? 
Assessing non-cash instruments such as e- and m-payments, prepaid
cards and virtual currency (offered by banks and non-banks) and
growing transaction volumes in regions such as Africa, the World
Payments Report has uncovered a significant statistical 'black hole'
due to inconsistent reporting of payments. This inconsistency is
emerging as new regions become more active and non-banks take an
increasing share of the market via instruments such as e- and m-payments. Analysis in the report suggests that industry estimates of
the size of the mobile payments market could be optimistically
inflated by a factor of up to 50 percent, raising the question of
whether reliable, centralized data collection is needed. The Report
calls for more statistical accountability in the industry and urges
regulators to facilitate such a move. Improved statistical data
collection would help payment services providers (PSPs) make more
informed investment decisions as well as help combat future market
risk. 
"Reducing market risk and regulatory complexity continues to be a
challenge for banks and other PSPs alike, particularly as regulations
proliferate and the overlap between individual initiatives continues
to increase," said Jean Lassignardie, Chief Sales and Marketing
Officer, Capgemini Global Financial Services. "PSPs can 'cluster' how
they implement individual regulatory initiatives[5] to take into
account cascading effects across geographies, complementary
reinforcement effects and competing effects." In North America, most
new regulation is focused on transparency and customer convenience.
In Asia Pacific, the regulatory focus is on standardization and
bringing new participants into the financial system. While in Europe,
SEPA[6] regulations are dominating the landscape as regulators
concentrate on increasing competition and improving transparency. 
Driving fragmentation and innovation in payments acquisition space 
Payments acquisition[7] has emerged as the area with greatest
potential for customer-centric innovation. Drivers for innovation in
payment acquisition for PSPs include: desire for proximity to
customers, need to meet new and changing demands, and the
fragmentation of the value chain. Through payments acquisition
innovation, PSPs can offer both retail and corporate customers'
choices between instruments, locations, channels and currencies which
is increasingly being demanded. Innovation is evolving in
consumer-to-business (C2B) acquisition towards 'any form,'
'anywhere,' and 'anytime' payments which can be found in alternative
models from PayPal (Order Ahead application with Jamba Juice) and
WorldPay (accepting multiple instruments.) In business-to-business
(B2B) acquisition, innovation is seen in the SWIFT (3S Key security
solution) and ErsteConfirming (supply chain solution.)  
"Both new and legacy payments providers recognize that not all
players need to provide end-to-end services and are focusing on the
four 'Innovation Value Hotspots' of origination, acceptance and
capture, security and fraud, and value-added services," said
Lassignardie."In choosing one or more of these hotspots, payments
providers have an opportunity to differentiate and meet the new and
changing needs of both retail and business customers." 
The Report concludes that the trajectory of change in the payments
acquisition space is too steep for PSPs to stand still. Strategies
must be revisited and reformed in order for PSPs to stay in the game
and to benefit from the changes innovation will deliver. 
The report is available for download at
www.capgemini.com/worldpaymentsreport  
About Capgemini
With more than 125,000 people in 44 countries, Capgemini is one of
the world's foremost providers of consulting, technology and
outsourcing services. The Group reported 2012 global revenues of EUR
10.3 billion. Together with its clients, Capgemini creates and
delivers business and technology solutions that fit their needs and
drive the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the Collaborative
Business Experience(TM), and draws on Rightshore®, its worldwide
delivery model. 
Learn more about us at www.capgemini.com. 
Rightshore® is a trademark belonging to Capgemini 
About Capgemini's Financial Services Global Business Unit
Capgemini's Global Financial Services Business Unit brings deep
industry experience, innovative service offerings and next generation
global delivery to serve the financial services industry. With a
network of 21,000 professionals serving over 900 clients worldwide
Capgemini collaborates with leading banks, insurers and capital
market companies to deliver business and IT solutions and thought
leadership which create tangible value. 
More information is available at: www.capgemini.com/financialservices 
About Markets & International Banking (M&IB) 
RBS Markets & International Banking (M&IB) is a leading banking
partner to major corporations, financial institutions, government and
public sector clients around the world. M&IB provides an extensive
range of products and services in debt financing, global markets,
risk management, investor products, financial advisory and
transaction services. The division focuses on long-term client
relationships and excellence in product execution underpinned by
global insight, local knowledge and a prudent and sustainable banking
model to meet the evolving market and regulatory backdrop. Committed
to serving clients' needs internationally, M&IB has on-the-ground
operations in 38 countries. 
The Royal Bank of Scotland Group (RBS) 
The RBS Group is a large international banking and financial services
company. Headquartered in Edinburgh, the Group operates in the United
Kingdom, Europe, the Middle East, the Americas and Asia, serving over
30 million customers worldwide. The Group provides a wide range of
products and services to personal, commercial and large corporate and
institutional customers through its two principal subsidiaries, The
Royal Bank of Scotland and NatWest, as well as through a number of
other well-known brands including Citizens, Charter One, Ulster Bank,
Coutts, Direct Line. 
Visit: www.rbs.com 
[1] The World Payments Report 2013 is an annual report which examines
the latest developments in the global payments landscape, including
payments volume trends, payment instruments (such as cards and
checks), key regulatory initiatives and their impact on strategic
considerations and options for banks. 
[2] Mature Asia consists of Australia, Japan, Singapore, and South
Korea. 
[3] Electronic payments (e-payments) are digital payments made over
the internet for e-commerce activities. and Mobile payments
(m-payments) refer to when the mobile phone is as a payment method -
not just as an alternative channel to send the payment instruction -
and the payment flow takes place in real-time. 
[4] Estimates for 2012 are based on data and events collected in
2011. 
[5] New regulatory initiatives have emerged around the world during
the past year, focused on increasing consumer convenience, improving
payments security and transparency, strengthening fraud prevention,
and stimulating innovation. 
[6] The Single Euro Payments Area (SEPA) is an initiative of the
European banking industry that will make all electronic payments
across the euro area - e.g. by credit card, debit card, bank transfer
or direct debit - as easy as domestic payments within one country are
now. Source: http://ec.europa.eu/internal_market/payments/sepa/ 
[7] 'Payments acquisition' refers to enabling sales/commerce by
bringing buying and selling entities together in both
Customer-to-Business (C2B) and Business-to-Business (B2B) contexts,
allowing the acceptance of any payment instrument based on customer
choice, and facilitating sales agnostic to location, channel, or
currency. 
The following files are available for download: 


 
--  WPR 2013 Infographic

 
Image Available: http://www.marketwire.com/library/MwGo/2013/9/13/11G
008110/Images/WPR_2013_Infographic_Final-692538431069.jpg 
Capgemini Contacts:
Courtney Finn
Weber Shandwick for Capgemini
cfinn@webershandwick.com
+1 952 346 6206 
Marta Saez (EMEA)
msaez@webershandwick.com
+44 20 7067 0524  
RBS Contacts:
Anita Berthier
Media Relations Manager
RBS
anita.berthier@rbs.com
+44 207 678 0669 
Alastair Fairbrother / Zoe Gray / Abbie Daniels
Fishburn Hedges for RBS
rbs@fishburn-hedges.com
 
 
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