The hottest payment trends and banking innovations will also be discussed at Portfolio’s Banking Technology event on November 5. Registration and details here!
What does the market look like?
A Citi Treasury and Trade Solutions according to its global survey, wholesale payments (securities turnover, commercial transactions) they account for nearly 90% of cross-border traffic.
The second largest segment business-to-business (B2B) e-commerce, which, with an estimated market size of nearly 10 thousand billion dollars, is the fastest growing area in international money circulation:
here we can expect an annual growth rate of 12% between 2023-2030, so by 2030 it will be a 22 trillion dollar market.
The growth reflects the proliferation of marketplaces and e-commerce platforms, with businesses digitizing at breakneck speed. In addition to e-commerce, in the consumer segment, payments for travel, healthcare and education continue to have high growth potential. Similarly, one-to-one transfers and peer-to-peer payments are expected to grow rapidly. Between businesses and consumers (B2C)between consumers and businesses (C2B) and between customers (C2C) in segments we can both expect high, single-digit annual growth between 2023-2030.
fgintech disruptors appeared mostly in the business-to-consumer (C2B) and customer-to-customer (C2C) segments operating with high profit margins, where digitally native solutions gained territory from banks.
According to the Citi TTS 2024 survey
fintechs are expected to gain an average of 10% market share from traditional financial institutions in the next 2-5 years.
The good news for banks is that agile incumbents who adapt to newer industry standards and emerging technologies are likely to be able to maintain market share. However, according to Citi’s 2024 survey almost half of the banks see room for improvement in order to generate higher revenues from their cross-border payment products.
This is innovative could be achieved with pricing strategies, smarter transaction routing and the use of data, thus, the banks do not lose their revenues generated in the area.
Banks should also focus on providing alternative payment methods, survey participants said almost two-thirds see that there is a demand for this from customers. According to the Citi TTS 2024 survey, bank managers believe that for banks in the next 5 years the ensuring 24/7 operations is a top priority to address the challenges of cross-border payments.
The hottest payment trends and banking innovations will also be discussed at Portfolio’s Banking Technology event on November 5. Registration and details here!
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
