At SIBOS 2019, global consultancy McKinsey offered its take on the global payments space for the coming year.
A reduction in GDP forecast globally has led to stabilised growth.
The market is worth nearly $2trn in value.
Payments revenue as a percentage of banking will only continue to increase.
What does this mean?
The payments overview report is done via surveys of transaction banks, merchants, issuers and customers as well as an economic model McKinsey builds of the global payments space, complete with a country by country breakdown.
Philip Bruno, Partner at McKinsey, presented the findings on stage at SIBOS alongside Partner and Managing Director Olivier Denecker. “This is a market which is nearly $2trn in revenue – it will continue to grow at about 6%,” said Bruno.
McKinsey put moderation of growth down to the global GDP reduction coupled with trade issues and economic uncertainty. However, the payments market will still grow over the next five years.
“When we look at payments revenue as a percentage of banking, it will continue to grow,” Bruno explained, adding that soon banks will be around 40% ‘payments companies’.