Data Snack: Cross-border payments prepare to digitize; cards and ATMs lose their sheen
- Consumers and businesses alike now demand fast cross-border payments, but current systems can only go so far.
- Newer technologies like APIs, tokenization, and blockchain come with the promise of secure lines and instant settlements.
In a recent report, the Bank of England forecasted that cross-border payment volume will swell up to $250 trillion – indicating an increase of over $100 trillion from half a decade ago in 2017. Couple that with the Economist Intelligence Unit’s latest white paper calling cross-border payments the next frontier for disruption, and you have an exciting industry that’s growing, innovating, and lucrative.
The white paper argues that the disruption has, in part, been caused by the Russia-Ukraine war. Economies are eager to connect their fast payment systems in a bid to bypass middlemen and make moving money cheaper. Southeast Asian countries are already working on this, as they make it easier for travelers to acquire products and services by simply scanning QR codes.
The white paper also forecasts that there will be fewer ATMs, and that payment cards too will suffer, as digital payments continue penetrating the market. The pandemic-fueled pace of growth in digital payments is, however, expected to slow down.
In this data snack, let’s look deeper into the EIU’s findings.
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