Top Five Trends in Payments and Lending

Delivery

This report comes in PPT.

Key Findings

BNPL grows across markets

BNPL has proved to be an effective lending channel for consumers across developed and emerging markets. Its unsecured nature increases the overall risk, but also appeals to consumers who might not be able to qualify for formal lending channels.

Credit value growing faster than debit

Credit card payment value increasing at a faster rate than debit suggests that consumers are adopting multiple financial cards. More targeted and effective loyalty and reward programmes are increasing the number of credit cards consumers carry.

Mobile payments are nearly universal

Mobile payment value continues to surge, as more digital payment platforms become available to consumers. Additionally, the platforms’ simplicity and convenience continues to increase, making transactions seamless both in-store and remotely. This has also increased the need for financial institutions to offer a wider range of products through mobile devices.

Fintech increasing the value of digital transactions

Fintech has added additional layers to a transaction to increase access, security, convenience and reward programmes. The remaining millions of unbanked and financially underserved consumers, as well as rising fraud levels, ensure continued fintech integration into payments and lending.

B2B payments are the next paper payment opportunity

Commercial paper payments is the largest opportunity for payment players looking to convert to card or electronic alternatives. Card issuers are increasingly targeting SMEs with tailored rewards and loyalty programmes to accelerate the shift.