FIS: Global Payments Report 2023: Payments insights that drive growth

Report Link: Global Payments Report | FIS (fisglobal.com)

Size of Report: 182 pages

Whilst this is a huge report compared to many, it’s broken down into regions, so you can quickly read the executive summary up to page 28 and then go to the region that most interests you. Five regional views are covered in the deep-dive being Asia Pacific, Europe, Latin America, Middle East & Africa and North America.  In each region, FIS have selected a few markets where they then do an even deeper trend insight.

Today’s consumers have high expectations – especially when it involves making purchases. They want customised payment journeys that keep their data safe, speed up the checkout process and reward them for their loyalty. In short, consumers expect nothing less than payment perfection. Payment experiences take place in a diverse global tapestry that defies one-size-fits-all solutions. That makes the payment landscape in every market unique.

The themes are largely the same as others predict, though FIS data brings more of an acquirer angle to it.  The themes set out are:

• Account-to-Account payments driven by real-time payment rails will disrupt with lower acceptance costs and projected to grow 13% CAGR to 2026. A2A payments have domestic regulatory support and for merchants, reduce payment acceptance costs while improving cash flow with immediate funds available.
• Consumer use of credit cards remains strong, still with a 4% CAGR forecast, although sources of credit are diversifying so merchants should offer a broad range of options and payment increasing from credit-card funded wallets, although bank account and debit cards rank ahead of credit cards as the fund source.
• Digital Wallets extend their omnichannel dominance with continued double-digit CAGR into 2026. APAC remains the outlier, but in Europe and North America usage overtook credit cards in 2021 and 2022 respectively. Each market, however, has very distinct preferences for digital wallets.
• Cash, whilst not king, remains essential for merchants as even by 2026 globally at POS, cash could represent just under 10% of preferred payment methods. It’s therefore more likely that physical cash will gradually give way to central bank digital currencies (CBDCs).
• Embedded Finance, like BNPL, evolving to next phase. Here a diverse range of competing organisations exist, the outcome is evermore choice, flexibility, transparency for the customer and greater regulation.
• Cryptocurrency interest rebounding and will emerge as viable person-to-business payment options, which could lead to it being 0.5% of payment method choice by 2026.
• Global e-Commerce will remain robust with a 9% global CAGR but with fast growth coming from emerging markets.

At a regional level, 40 markets get a deeper summary of what is happening:

• APAC section covers a deeper dive in 14 markets: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The main five trends in this region:
  • Digital wallets are following China, growing fast. China has been a global pioneer.
  • e-Commerce growth leading in emerging regional economies.
  • BNPL (Embedded Finance) seeing big gains in e-Commerce. Australia has been a global pioneer.
  • Cash continues to decline rapidly at PoS, largely owing to proliferation of QR codes.
  • Real-time payments driving A2A adoption, APAC is a global leader in RTP.

• Europe section covers a deeper dive into 14 markets: Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Spain, Sweden, Turkey, and the UK. The main five trends in this region:
  • In e-Commerce alternative payment methods continue to grow share.
  • Payment methods across the region vary greatly.
  • Cash continues to decline as PoS.
  • A2A payments are flourishing across Europe – Blik in Poland is a standout star.
  • The Nordics point the way toward successful regional cooperation models (real time A2A).

• LatAm section covers a deeper dive into six markets: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The main four trends in this region:
  • e-Commerce growth fuelled by mobile commerce.
  • A2A payments seeing dramatic growth.
  • Credit Card dominance on the edge – losing share to APMs like A2A and digital wallets.
  • Mobile Payments surge as cash declines.

• Middle East & Africa section covers a deeper dive into four markets: Nigeria, Saudi Arabia, South Africa, and UAE. The main four trends in this region:
  • ME&A displays a great migration to digital wallets.
  • A2A payments are rising in prominence across the region.
  • BNPL (Embedded Finance) now the region’s fastest growing e-Commerce payment method.
  • ME&A sees dramatic decline of cash at PoS.

• North America section covers a deeper dive in two markets: Canada and the US. The main four trends in this region:
  • e-Commerce growth slows.
  • A2A poised for regional growth when FedNow becomes the 3^rd RTP in the USA.
  • Wallets now represent the region’s No 1 e-Commerce payment method, displacing credit cards.
  • Credit Card behaviour remains high, but behaviour shifts are evident.

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