A recently published McKinsey Global Payments report for 2022 states that growth in Payments revenue for the year 2021 was higher than expectations and reached a high since 2017.
The report also predicts that there will be a much larger revenue growth in Payments in the coming years. Asia-Pacific will see the highest growth in cashless transaction volumes which will constitute more than 50% of global volumes as per PwC Strategy & Global Payments Model 2021.
In this whitepaper, we will look at some of the key payments trends in the Asia-Pacific markets which will dominate in 2023 and beyond.
ISO20022 migration for global schemes like SWIFT and the domestic payments schemes across different markets will continue to dominate in 2023.
Launch of New Services
We will see countries continuously launching new services to digitize their economies and move away from legacy infrastructure. As payment volume grows, new services like Instant Payments, Request to Pay or Mandate Payments will find use cases in many markets.
Central Bank Digital Currency (CBDC)
CBDCs are digital tokens issued by a central bank and are pegged to the value of that country’s fiat currency. The major difference from cryptocurrency is that CBDCs will be backed by the central government. While this is still in the pilot phase, countries are evaluating use cases for wholesale transactions in particular around cross-border payments, securities settlement and retail CBDCs with progress happening faster than predicted.
Cloud and Payments-as-a-Service
Migration to cloud-based platforms will be another major shift we will experience in 2023 and beyond. As volumes rise, cloud platforms enable payment providers with the required scalability, resilience, and high availability in a 24/7 environment.
Environment, Social and Governance (ESG) Initiatives
Specifically in payments, we will see Banks working with external parties to provide greener products and help increasing customer awareness about environment impact on transactions.
About the author
Rishi Sarin is a Business Solutions Manager at Temenos, with more than 16 years of experience in Core Banking, Digital Banking and Payments space. He specializes in driving banks through large-scale transformation projects and is greatly involved in various stages of project lifecycles with leading Tier 1,2 and Challenger banks across all continents. With deep understanding of Temenos products, Rishi is currently responsible for leading the entire pre-sales activities of Temenos products in ASEAN and Indian Subcontinent region.