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Global market of electronic payments: challenges and prospects

06.06.2016

Global market of electronic payments: challenges and prospects

Analysis by McKinsey shows that global market of e-payments is on the threshold of sweeping changes. Market of payments will be influenced by the ongoing digital revolution and the emergence of new technologies. Digital technologies are rapidly developing and changing the format of the behavior and interaction of people and business. Also, technological progress will impact greatly on the financial services market, particularly on the payments market.

According to McKinsey, one of the trends that will change the industry in the coming years is the emergence of non-bank players on financial market which provide services for electronic payments. In the next 5 years it is expected to increase in competition of large non-financial companies (e.g., Facebook, Samsung, Apple, etc.), which have started offering electronic payment services. The consequences of this trend are accelerated growth in electronic payments and reducing the use of cash and checks.

The payment system is at the center of financial innovations. If the start-ups of non-financial companies haven’t posed a threat for the banking industry before (in 1997-2000 less than10 out of 450 start-ups, providing electronic payments services, remained on the market), in the future, according to McKinsey, the situation is going to change. Why?

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