In our last post, we had given you a bird’s eye view on how the world has shrunk. Through this post we aim to put forth that view in perspective with some data that testifies the current phenomenon of global online payments.
Developing Countries have witnessed a 21.6% average annual growth in non-cash transactions during the period of 2011-15, whereas the mature markets have grown at a pace of 6.8%. The similar trend continues even in 2017. Growth in global non-cash transactions is driven by significant growth in two regions: CEMEA (Central Europe, Middle East and Africa) and Emerging Asia.
Interestingly, while we have seen the surge of non-cash transactions globally, cash still remains the preferred mode of payment for low value transactions. Having said that, the growth in non-cash transactions have been fuelled by effective, efficient and secured payment gateways and online payment technologies, such as wallets, etc…
The increased adoption of mobile payments and wallets in Emerging Asia has contributed to the high growth of non-cash transaction in that particular region of the world. The emergence of Electronic Bill Presentment and Payment Solutions (EBPP) that utilizes real time payments network and infrastructure has boosted credit transfers in the region.
In CEMEA, the growth has been fuelled primarily by Saudi Arabia and Poland. High growth in card transactions and credit transfers has fuelled the high volume of non-cash transactions. This holds good for countries where the card development network isn’t mature enough. In fact, in Saudi Arabia, the SADAD payment system is a national EBPP service provider, enabling businesses, banks, individuals and the government to avail of a wide range of payment options. SADAD has grown over the years and expanded in 2016 with the launch of a new e-account service which facilitates the connection between banks and retailers, thereby increasing the scope of online payments in Saudi Arabia.
That being said, developing markets have recorded an accelerated volume growth of non-cash transactions driven by individual countries such as China (63.2%), Russia (30%), India (16%), Mexico (10.9%) and South Africa (10.7%).
For more insights on how our online payments system works, please visit here.
(DATA SOURCE: Capgemini’s World Payments Report 2017)