Global payments revenue will grow in 2023, but cautiously

A year-on-year growth of around 9.5% is anticipated for global payment revenues, according to the Boston Consulting Group. A global payment refers to a payment made anywhere in the world in any currency, usually electronically trusted Internet systems.

Of course, this growth that both shareholders and the general public are hoping for will depend on a stable macro environment and good access to skills.

Boston Consulting Group has said it forecasts global payments revenues will rise by a compound annual growth rate (CAGR) of 8.3% through 2026 and that payments will continue steady growth of 7.6% through 2030, driven by what it refers to as solid fundamentals and ongoing cash-to-noncash conversion.

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Africa mobile payments on upward trend

Regional Managing Director for Southern Africa and PALOPS at Network International, Chris Wood, said that they have seen mobile payments in Africa continuing their upward trend, although they may not maintain the same aggressive pace.

“Growth will be driven by interoperability between multiple payment types. For instance, we will be using our phones to access mobile wallets to be used on a physical point of sale machine, bridging the gap between what has historically been either a digital payment or a traditional card play.

“We foresee a lot more integration between store of value offerings, rather than pure mobile-to-mobile type interactions. I think the days of M-Pesa only working in an M-Pesa universe are over as we see more integration between platforms.

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“In addition, we see strong growth in the non-bank space with a number of telcos and retailers entering the financial services industry and this will also be a large driver of future payments growth,” he said.

Wood clarified that the focus of many payment providers in 2023 will be to ensure that their payment options work on as many payment acceptance mechanisms as possible, thereby extending their reach. 

Wood explained that as infrastructure improves and deepens, people will be more inclined to use more reliable sources of payments.

“These are the ones that reduce risk of fraud, reduce friction to transact and work anytime, anywhere,” he said.