The industry standard for global payments data. Based on previous sensitivity analyses, we estimate that a change of one-half percentage point in GDP growth would likely lead to a corresponding change of one to one-and-a-half percentage points in payments-revenue growth. By customer segment, retail payments are expected to fuel growth in the Americas, while commercial payments are expected to predominate in APAC and EMEA, extending the current revenue mix in the regions. Transaction-fee growth has been more muted as regulatory and competitive pressures have depressed margins (albeit from a very healthy starting level). New, Figures and insights about the advertising and media world, Industry Outlook Update, Insights into the world's most important technology markets, Advertising & Media Outlook Cross-Border Payment Platform market is segmented by company, region (country), by Type, and by Application. An improving interest-rate environment has enabled net interest margins on current account balances to deliver a small but favorable increase each year. The underlying developments are impressive. At the same time, the global payments economy has been significantly affected, with an estimated 25% to 30% decrease in cross-border consumer to business payments. As a Premium user you get access to background information and details about the release of this statistic. Cross-border payment challenges Cross-border payments are intrinsically inefficient because there is not one single ubiquitous global payment system. In Western Europe, which accounts for approximately 70 percent of the EMEA payments-revenue pool, the reasons behind the increase in commercial-payments share are twofold. International payments have been a crucial element in the growth and sustainability behind today’s global economy. New Report On Global Cross-Border Payment Platform Market 2020 by Company, Regions, Type and Application, Forecast to 2025 added to Orbisresearch.com store which has 102 pages and available for purchase at US $ 3480. tab, Travel, Logistics & Transport Infrastructure. Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook Join an esteemed International Panel of FinTech, Trade, and Global Payment professionals for a lively discussion of the latest industry trends and developments. New, Everything you need to know about the industry development, Find studies from all around the internet. Sukriti Bansal is a knowledge expert at the McKinsey Knowledge Center in Gurgaon, Philip Bruno is partner in the New York office, Olivier Denecker is a partner at the Brussels Innovation Center, and Marc Niederkorn is a partner in the Luxembourg office. Join the conversation via #CrossBorderPayments International payments have been a crucial element in the growth and sustainability behind today’s global economy. Key findings were discussed on a January webinar entitled Go Global: A Review of Progress and Pain in Cross-Border Payments (Off-site), where nearly 700 highly engaged stakeholders attended, demonstrating rich interest in this topic. The work spans across the revenue collection and expenditure side, including large scale programs like tax collection, public sector salary payments, public procurement and other Government to Person (G2P) payments. Please click "Accept" to help us improve its usefulness with additional cookies. Use minimal essential Chart. Global Payments Market Overview In an increasingly globalised world, technology has broken down many barriers created by geography. A paid subscription is required for full access. There are three underlying drivers behind this somewhat erratic growth trend: Underlying transaction growth remains remarkably strong. The World Bank’s Payment Systems Development Group (PSDG) has made an attempt to strike the right balance between presenting all relevant issues in a level of depth that is appropriate for the various interested audiences, and making the information and data stemming from the Global Payment Systems Survey available to the overall public as soon as practicable. You only have access to basic statistics. Global Panel of Industry Experts: Webinar Discussion Topics to Include: •Global Regulations […] Electronic payments transactions have been growing at a staggering rate of 22 percent in emerging countries over the past five years. The demand for fast, efficient and transparent cross-border payments is higher today than ever before. This growth trajectory in cross-border payments highlights that shoppers are no longer put off by … The Federal Reserve recently conducted a review of the current cross-border payments landscape to better understand developments and ongoing challenges. Global Cross-Border Payment Market Research Report 2019-2025 has complete details about market of industry, analysis and current trends. If many of the underlying trends (for example, rapid growth in electronic transactions) in the two locations are similar, the European picture is dominated by the further weakening of the interest-rate environment, with negative interbank rates having reappeared in the eurozone. The real issue is bringing together global ambitions with the realities of operating under local conditions and regulations, and this practical perspective is indispensable. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. dollars)." Real‑time Cross‑border Payments. At roughly $605 billion of revenue, mainland China is the single-largest contributing country to global payments revenues, surpassing the United States by more than $100 billion and comprising two-thirds of overall APAC revenue (Exhibit 2). Payments-revenue growth in Europe, in contrast with North America, has remained sluggish and below GDP growth, continuing the trend of the past two to three years (Europe comprises roughly 90 percent of the activity in Africa, Europe, and the Middle East [EMEA]). Cross-border payments are vital to the overall global payments infrastructure. For more on 2019 payment trends, check out our first post on payment automation. However, the industry remains confident that the post-pandemic world will still see the cross-border payments … Revenue growth in Latin America is expected to moderate to a more sustainable 7 percent over the next five years—approximately half of its historical growth rate. Potential for Payment Growth. Flip the odds. The estimated 2018 global cross-border-payments revenue was $230 billion, a 4 percent increase from 2017 and slightly below nominal GDP (Exhibit 3). Our interview partner Bogdan Dinu is the perfect expert to lead us through the dense jungle of the cross-border payments landscape. collaboration with select social media and trusted analytics partners Asia–Pacific (APAC) payments revenues grew by 6 percent in 2018, in line with GDP growth for the region (but contrary to what one could expect, slower than in North America). Getty. In Asia as well, account-to-account and credit-card fees per transaction are already comparable to those in developed countries and are not expected to undergo major shifts. Although card spending in China is nearly 1.5 times that of the United States, it generates a revenue margin of roughly 1 percent, compared with 3.5 percent in the United States. FinTechs are expected to account for 13.3 percent of cross-border B2B transfer value by 2020, totaling $29 trillion, a nearly 6 percent increase from 2017 levels. However, this mix has not remained static at a regional level. The full report provides deeper analysis on more detailed aspects of the payments landscape. Dollars). ... FXC Intelligence provides some of the best data and insights on the cross-border payments industry globally. This growth has been fueled by economic factors (especially in emerging economies), an ongoing shift from checks to electronic applications as means of payment for high-value transactions in many countries, and the need for enhanced speed and information that accompanies fund movement in these upgraded systems. A successful mechanism for cross-border payments is essential for global economic growth. Please use UP and DOWN arrow keys to review autocomplete results. As the Head of Product in leading global payments network Thunes , he is set to support the business through its next phase of global expansion. Download The 2019 McKinsey Global Payments Report, the report on which this article is based (PDF–1MB). The development of real-time low-value payments and alternate payments solutions over the past few years has set the stage for retail-payments disruption. Cross-border payments is a US$22 trillion market 1 and it is a Quick Analysis with our professional Research Service: Content Marketing & Information Design for your projects: Industry-specific and extensively researched technical data (partially from exclusive partnerships). Chapter 5 allows you to discover your own stories and to narrow the results to a particular segment and revenue type. Cross-border payments have grown in size to amount to about $20 trillion in 2019, Cunliffe said this week. And reforms may unlock innovation and much needed growth, particularly following the COVID-19 crisis. SWIFT gpi is a first step in solving this longstanding cross-border payments challenge because it covers the interbank portion of the transaction flow. The fastest-growing segment in cross-border payments, however, is C2B, fueled by cross-border e-commerce, which we expect to grow at a 7 percent CAGR from 2018 to 2023. First, retail-card revenues have taken a hit because of interchange caps. Another important consideration when you’re processing cross-border payments is how money is settled into your account. This feature is limited to our corporate solutions. Among other sources, Cross-border payments are a vital revenue stream for banks. "Value of Cross-border Payments Worldwide from 2016 to 2022, by Type (in Trillion U.S. Global Panel of Industry Experts: Webinar Discussion Topics to Include: •Global Regulations […] In fact, we estimate that nearly half of all global debit-card spending now occurs in China alone. Electronic payments transactions in Europe are growing consistently, at double European GDP growth rates (from 2013 to 2018, 7.9 percent compound annual growth rate [CAGR] versus 3.5 percent GDP CAGR). In fact, the survey found that 37% of corporates were planning to spend $100,000 (£77,676) or more on payments technology over the next 12 months. The need to modernize these systems cannot be ignored; fortunately, markets have begun to take notice. our use of cookies, and Digital upends old models. So … Account-to-account payments systems at the point of sale are gaining momentum in countries like Denmark, Italy, and Sweden but do not yet add up to a significant volume shift at the aggregate European level. Western Union (NYSE: WU), a global leader in cross-border, cross-currency money movement and payments, announced it has expanded real-time digital payout capabilities into 100 countries reaching billions of bank accounts. Cross-border payments network Ripple (XRP) announced that it had become part of the ISO 20022 Standards Body, becoming its first member focused on distributed ledger technology (DLT). While this growth rate is unsustainable over the long term, it is projected to remain fairly high at a 14 percent CAGR for the next five years, well above GDP growth, based on our analysis of historical trends and projected macroeconomic growth in these countries. B2B cross-border payments are thriving in today’s interconnected world. Cross-border payments is a US$22 trillion market 1 and it is a In part two of our three-part series on 2019 B2B payment trends, the focus is on the promising future for cross-border payments. This statistic is not included in your account. Adyen has extensive global coverage of over 30 currencies. From the global pandemic to trade wars, the Cross Border Payment Industry has continued to innovate and thrive in 2020. Tracking payments across 55 networks and market infrastructures As soon as this statistic is updated, you will immediately be notified via e-mail. The Global Payments Report 2019 revealed revenues from global payments amounted to $1.9 trillion, while transaction fee growth stagnated as a result of competitive … Statista. Learn more about cookies, Opens in new Corporate solution including all features. Getty. ... underpinned by our own cross-border payments data, produces new insights and analysis on the sector every week. The task force’s co-chairs will unveil this ambitious roadmap, and kick-off a public consultation with users, innovators, regulators, and policymakers to further refine the plan. Although it remains the slowest growing of the four primary regions, Europe has established a somewhat heartening revenue trend, with consistent growth in the region (in contrast to the contraction experienced in the first half of the decade). Cross-border transactions1 Account-related liquidity2 Domestic transactions3 20% 8% Cross-border transactions4 Account-related liquidity2 Credit cards 100% = $880 $515 $345 $210 Credit cards 2% 3% 5% 6% 8% 15% 4% 1% 6% Payments revenue, 2018, % (100% = $ billion) Exhibit 2 Asia-Paci˘c continues to dominate the global payments revenue pool. In our base-case forecasts, we do not anticipate a significant change in average fees per transaction for domestic payments. This article focuses on some of the surprises and key takeaways emerging from McKinsey’s 2019 Global Payments Report (see sidebar, “McKinsey Global Payments Report restatement”). You can only download this statistic as a Premium user. Second, corporate account-to-account payments have exhibited solid revenue growth, driven by both increases in volume and unit pricing as banks seek to counterbalance the loss in liquidity revenue. Global cross-border e-commerce 2018 Published by Daniela Coppola , Nov 26, 2020 October 6, 2017. Cross-border revenues were revised upward by approximately $15 billion compared with the 2018 Global Payments Map, incorporating various enhancements, including margin updates for intra–European Union flows and revised C2B and B2C flows and revenue based on new insights. Low volume does not imply lower economic value for providers: the average fee on a large-value transaction is nearly eight times that of an ACH transaction. It confirms 2017’s outlier nature, owing to a one-off regulatory intervention affecting Brazil, the region’s largest payments market. This growth rate is slightly above the expected global GDP growth rate of 5 percent, the result of a combination of factors. Never miss an insight. Compared with other payments instruments, these large-value transactions (settled in real time over systems like CHAPS in the United Kingdom and Fedwire Funds in the United States) are quite low in volume but significantly higher in average value, at roughly $200,000, compared with $3,500 for an automated clearinghouse (ACH) credit transaction and only $60 for a debit-card transaction. Key findings were discussed on a January webinar entitled Go Global: A Review of Progress and Pain in Cross-Border Payments (Off-site), where nearly 700 highly engaged stakeholders attended, demonstrating rich interest in this topic. We'll email you when new articles are published on this topic. facts. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it. The Cross-Border Payments Landscape 5 1. The value of global cross-border payments … Something went wrong. 2020: Transformation ... the cross-border movement of salaries and pensions and a host of other core activities) will become part of the ... the opportunity to link data and analytics to the flow of payments is . Cross-border Payments on Blockchain Enabling Business-to-Business and Person-to-Person payments across borders on vendor blockchain-based payment rails Business-to-Business Person-to-Person Low-Cost 40–80% reduction in transaction costs (8% of transfer today) Near Real-Time 4-6 seconds average velocity of money (2-3 days today) Secure As we note in chapter 2 of the full report (available for download below), a renewed wave of merger activity is blurring the lines among providers serving various stages of the value chain. Whilst collecting funds cross-border is the most prominent pain point, sellers working in a cross-border context have both local and overseas pay out requirements. Facebook: number of monthly active users worldwide 2008-2020, Smartphone market share worldwide by vendor 2009-2020, Number of apps available in leading app stores 2020, Research expert covering finance, insurance & real-estate, internet & e-commerce, Profit from additional features with an Employee Account. WorldLink by Citigroup, which recently expanded coverage, allows clients to make payments via a single window without having to maintain local currency accounts. These developments have offset the fact that commercial account-liquidity revenue has been more negatively affected than retail account-liquidity revenue has. As always, however, the composition and dynamics of payments revenue vary dramatically by region, necessitating a disaggregated geographical assessment. Despite the encouraging signs in transaction growth and fee revenue (4 percent in 2018), these gains are offset by marginal declines in liquidity revenue. The estimated 2018 global cross-border-payments revenue was $230 billion, a 4 percent increase from 2017 and slightly below nominal GDP (Exhibit 3). The first is strong growth in account-liquidity revenue at a 7 percent CAGR. Please contact us to get started with full access to dossiers, forecasts, studies and international data. tab. So … FXC Intelligence is a financial data company specializing in international payments, ... Our research team, underpinned by our own cross-border payments data, produces new insights and analysis on the sector every week. The high growth rates make these segments very attractive for new entrants. Value of cross-border payments worldwide from 2016 to 2022, by type (in trillion U.S. dollars) [Graph]. Same day credit to the end beneficiary of nearly all payments: 50% within 30 minutes; 40% credited within 5 minutes; many in just seconds More than $300 billion carried over gpi every day across 1,100+ country corridors, representing 80% of all SWIFT cross-border payments (and growing!) Several long-standing trends were reestablished, offsetting 2017 outliers—notably, Latin America’s return to above-average growth. Notably, 95 percent of liquidity-revenue growth stems from higher balances—a source more predictable than margin changes, given the volatile interest-rate environment. Global revenue reached $1.9 trillion in 2018, reflecting 6 percent growth. Enhancing cross-border payments has become an important global policy agenda, to counter fragmentation and to facilitate continued orderly functioning of the international trade and financial system. Growth has mostly been volume driven, as margins remain under pressure from stiff competition, the emergence of new solutions, and disintermediation from ecosystem players. There will, of course, continue to be further differences by region and segment. Posted on August 16, 2019 Cross-border payments are expected to surge over the next few years as the economy becomes increasingly global and interconnected. This result marks a return to growth following a 2 percent decline in 2017. This is among the highest shares observed across the 45 countries modeled in McKinsey’s Global Payments Report, which together compose nearly 90 percent of global GDP. and over 1 Mio. That figure is slightly above the global nominal GDP growth of 5 percent projected by both World Bank and Economist Intelligence Unit. Following a year of unprecedented, double-digit growth in 2017, global payments returned to its established pattern of steady yet strong performance. If you would like information about this content we will be happy to work with you. Roughly 45 percent of revenue growth is expected to be derived from account-liquidity revenue—an increase from approximately 40 percent over the past five years. Nearly half of the 2018 growth stemmed from C2B and B2C cross-border payments, despite the fact that these payments represented only around 25 percent of the revenue, in absolute terms. Chart. Global cross-border e-commerce market share 2016-2022 Challenges for logistics providers in last mile delivery 2020 Top challenges with cross-border e-commerce in the supply chain industry 2020 Please try again later. Enhancing cross-border payments is a G20 priority during the Saudi Arabian Presidency. B2B cross-border revenues are expected to grow at a tepid 3 percent CAGR for the next five years. Reinvent your business. Trade flows as a percentage of global GDP have remained stable over this period. The industry has developed SWIFT gpi, as the new standard in global payments. Changes to cross-border payments have a bearing on the stability of the international monetary system, on financial inclusion, and on the efficiency of trade and financial markets. Indeed, a large share of China’s revenues is derived from liquidity, which is somewhat shielded from competition as inaccessible to nonbank service providers—and most likely to foreign bank entrants as well. Full Conference: Cross-Border Payments—A New Beginning. On the other hand, in EMEA, commercial payments now account for a majority of the revenue (52 percent, up from 49 percent in 2013). This does not imply an absence of opportunity, however. Among other sources, Cross-border payments are a vital revenue stream for banks.