Key highlights

— Highlight 1

An increasingly mature digital payments infrastructure has fueled non-cash transaction growth

COVID-19 encouraged customers and businesses to incorporate digital technology into their everyday lives and increased the adoption of non-cash payment methods. The volume of instant payments and e-money transactions in total non-cash transactions is forecasted to increase from 17% in 2021 to 28% in 2026.

— Highlight 2

Regulatory and industry initiatives have been numerous and far-reaching during the current period

In 2021-22, authorities emphasized risk reduction, standardization, and innovation. Regulators consistently introduced new initiatives aimed at achieving the overall objective of creating equilibrium in the payments ecosystem.

— Highlight 3

SMBs’ expectations of their banks and other payment service providers are rising

The negative impact of the pandemic on small and medium businesses (SMBs) has been aggravated by global inflationary pressure and ongoing geopolitical tensions. SMBs want payment systems that are convenient, cost-effective, and digital; they are also seeking products and services that can be more highly customized to their specific requirements.

— Highlight 4

Payments services provider executives admit that SMBs face unresolved process and technology issues

61% of SMBs have a relationship with two to five traditional banks, and nearly a quarter said they worked with six to 10 service providers; unfavorable financial product terms compel SMBs to maintain multiple banking relationships. Despite numerous different affiliations, SMBs face challenges across the payment value chain.

— Highlight 5

Composable architecture enables payment firms to configure services, capabilities, and features on the go

Composability requires payment firms to select and assemble building blocks in various combinations to satisfy customer requirements. A modern, composable payments hub can be built on top of legacy systems, can leverage existing and/or newly developed in-house features, or use plug-and-play third-party services via composable architecture.

— Highlight 6

Central banks are collaborating to explore DLT use cases with other financial service providers

Several central banks have already collaborated with commercial, private, and retail banks to discover industry-wide distributed ledger technology (DLT) use cases. Financial services organizations are collaborating themselves, too, and building consortia with technology players and FinTechs to investigate DLT commercial use cases.

Download the report

Our World Payments Report 2022 offers incumbent payments players insights into earning the trust of small and medium businesses (SMBs) through innovation and engagement, building platform versatility to unlock new services, and preparing for a seamless future based on Digital Ledger Technology (DLT) and other evolving technologies. Discover how payment services providers can tap into their strengths to boost speed to market, agility, and innovation, and enhance their relationships with SMBs.

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