Our Growth in Payments report highlights three disruptive forces that are driving change and creating opportunities for growth: the launch of central bank digital currencies (CBDCs), changing customer behaviors and expectations (largely due to the pandemic) and the adoption of new, emerging digital technologies like artificial intelligence and cloud computing.
In some segments of the market, like international transfers and small merchant acquiring, the payments disruptors have already capitalized on these trends to build large businesses by driving fees down, squeezing banks’ margins and building scale.
Payments trends like the ongoing displacement of cash, new payments options like request to pay, digital currencies and buy now, pay later services (BNPL) are all creating exciting opportunities for those able to seize them. For the most part, these are payments fintechs and digital native disruptors.
However, a select few incumbent banking institutions and payments processors—we call them Payments Growth Leaders—have thrived amidst this disruption and outgrown the market over the last three years.