Digital Transformation Accelerate Global Payments Expansive Growth

As the world keeps moving toward digital economy, so do traditional global payment business that used to be controlled by traditional players and now being challenged by non traditional competitors. With the use of big data, blockchain and AI, focus on the effective and efficient online channel to serve the global market at large is nothing new, but worth for both traditional and nontraditional players to be aware of what is going on and be prepared for the next wave of change.

Global payment is always being an attractive business for those traditional business in that industry. Increasingly, nontraditional players are entering the market that offer lower rates and more efficient online automated workflow, did capture sizeable market share and the trend is to keep going for the nontraditional player keep growth in the market, from value innovation from the online platform and mobile application.

Global payments system  had various types of transactions, from large value transactions that settled in real time over systems like CHAPS in UK and Fedwire Funds in US) at roughly average USD 200k per transaction compared with other transaction such as automated clearing house (ACH) credit transaction at USD 3500 and USD 60 debit-card transaction. The development of real time low-value payments for recent year had disrupt retail market, as you can see the popularity of cashless society movement of China using Alipay and WeChat pay is one of the example models. Other new player like TransferWise, provide online money-transfer based on peer-to-eer matching, are an example of solution challenge traditional player in the same market.