Mobile payments will replace bank cards in 10 years

Objects of study, jointly conducted by Capgemini, The Royal Bank of Scotland (RBS) and Efma, were such innovations in the payments area, the volume of payments and the trend in the use of certain payment methods, as well as strategic development and opportunities for banks. The main findings are as follows:

Cards remain the preferred non-cash payment methods worldwide.

By 2013, mobile payments will be 15% of all transactions. Provided that the growth rate will remain at the same level, mobile payments will exceed the card for 10 years. Use of electronic and mobile payments is expanding, accounting for about 22.5 billion transactions in 2010, around the world.

It is expected that the number of electronic payment transactions worldwide will increase from 17.9 billion to 30.3 billion in the period from 2010 to 2013. During the same period, the number of mobile money transfer will increase from 4.6 billion to 15.3 billion.

Use of checks continues to decline. In 2009, it accounted for only 16% of all non-cash payments, which is 22% less than in 2005.

The report also provides an analysis of global and regional legal projects such as Basel III, Digital Agenda for Europe, Dodd-Frank Act, National Payments Corporation of India. As noted, these five projects aimed at changing the industry, together transform the market system of payments and distribution functions of the participants in this market. These initiatives, primarily focused on:

reducing systemic risk and increasing control.
increase efficiency, simplify the process and reduce costs.
development of a more comprehensible to consumers of payment products.
of card payment.
mikroplatezhnyh development technologies.
improvement and promotion of mobile contactless payments.

The study’s authors believe that “sooner or later publicly available traditional payment model (from supply to delivery) will not be optimal for payment service providers. Now we are seeing the emergence of two areas: wholesale payments provider and provider of retail payments. In this case, there are very few players that could develop in both directions. To become a provider of wholesale payments or provider of retail payments, or to combine both directions, companies need to make important strategic decisions. Banks also need to define the role they want to play in the future and prepare for these radical changes. ”

Posted by Roman Mikhaelov

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