2018-10-19 19:04 |
Digital payments are booming, and there is more interest in digital currencies now than ever. However, confusion related to regulation and complexities in operations could be causing troubles in the market.
According to the new World Payments Report 2018 from BNP Paribas and Capgemini, the innovation landscape in the crypto sector is still uncertain. The report suggests that it will take more than just a bank-led initiative to grow the new payment landscape in the country. Regulators, public sector organizations, and third parties will have to determine their role in the crypto market in order to develop a robust ecosystem.
How Is the Payment Ecosystem Developing?Up to the year 2021, noncash transactions will continue growing at a compound annual growth rate (CAGR) of 12.7 percent. In 2015–2016, the sector experienced a 10.1-percent growth when the total market volume grew up to 482.6 billion. Developing markets will be the biggest drivers of growth in noncash transactions. In 2015–2016, Russia grew at the highest CAGR, moving at 36.5 percent, followed closely by India at 33.2 percent and China at 25.8 percent. Mature markets have grown by 7 percent.
In the next five years, developing markets will grow at 21.6-percent CAGR. Emerging Asian economies will grow at 28.8 percent. Developing markets could account for about 50 percent of all noncash transactions in the world by 2021. Currently, mature markets hold a 66.3-percent share of noncash transactions.
The report suggests that banks are facing numerous issues in the creation of a new payment ecosystem. And among the bank executives who were surveyed for the report, only 38 percent are considering to have an “anchor role” in a new ecosystem.
But other than banks, corporate treasurers also have to consider their role in a new payment ecosystem. The report notes:
“Large payments users are also a key constituency in the evolution of innovation in the payments industry. Without their participation, payments services providers are missing a vital opportunity to shape new offerings in transaction banking such as in cash aggregation, cash forecasting, and automated treasury.”
Big Tech Slowly Moving InBigtech and fintech companies will also be making their presence felt in the market, particularly with e-wallets, which are presenting an emerging opportunity for growth. E-wallets contributed for 8.6 percent of noncash transactions, with a combined volume of $41.8 billion, in 2016. Bigtechs facilitated about 71 percent of these transactions.
Though the markets are consistently growing, technical and regulatory issues are creating problems for innovation in the market. Security is another concern that these companies must face. Capgemini’s Anirban Bose has this to say about the matter:
“As demand for digital payments is strong, especially in developing markets, some banks may want to revisit their choice to not seek an anchor role in the new emerging payments ecosystem. With their significant market share in the payments industry and the implementation of new technologies, banks are in a unique position to shape the marketplace. They can also create new revenue streams through innovative, collaborative relationships with FinTechs and active participation by the broader financial services community.”
Customers Are Demanding More Cryptocurrencies but Regulatory and Operational Complexities Remain was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
Similar to Notcoin - Blum - Airdrops In 2024
Digital Rupees (DRS) на Currencies.ru
|
