Digital Payments Transformation From transactions to consumer interactions

This stage of connectivity is driving digital payments transformation – the migration of cash payments and plastic card payments to payments made over digital channels, either from dematerialized cards held on digital wallets or in the cloud, or from new digital payment mechanisms. The addressable market is huge: Accenture’s analysis shows that cash and card payments total about three trillion transactions a year globally, worth around US$13 trillion in aggregate. How many of these payments will move to digital – and how quickly – is anyone’s guess, but we can be certain migration is happening as the digital economy develops. It explains why mobile and digital payments are now a white-hot topic, attracting significant investments and innovation, often backed by private equity and venture capital. However, there is little so far to show for these investments, and achieving success in the digital payments landscape is proving to be a major challenge. While banks recognize this new environment, many are unsure how best to react. They struggle with the plethora of evolving technologies, partnerships and emerging digital ecosystems – and are often hampered by the normal bank investment cycle, which can be out of synch with the need for fast decision-making and innovation. But we believe it is possible for banks to cut through the fog in the fast-changing and sometimes chaotic world of digital payments, and take concrete strategic steps to position themselves within it.