Capgemini found that increasing cross-border payment needs, higher transaction fees, and lack of standardization in global payments are prompting the move toward crypto.
Capgemini has published its World Payments Report 2021, a research study that finds a gap between consumer expectations and executives’ priorities in the space.
As use of alternative payments is skyrocketing, banks must urgently embrace the next generation of payments to stay in the race, the consulting company stated.
The report found that nearly 45% of consumers frequently use mobile wallets to make payments (>20 transactions a year) up from 23% in the 2020 poll.
Furthering this trend, global B2B non-cash transactions will increase to reach nearly 200 billion transactions by 2025, from 121.5 billion in 2020.
Capgemini took note of the alternative payment methods and their adoption rates in the next year or two, signaling a spectacular change in the space in such short period.
The percentage of consumers using Buy Now Pay Later (BNPL) services is about 20%, but the figure is likely to rise to 60% in the next 1-2 years as they see it as a cheaper alternative to credit cards.
Invisible and biometric payments both account for less than 10% but the figure is likely to move closer to the 50% mark.
The most interesting finding in the Capgemini report is that cryptocurrency payments, which adoption rate is in the single digits, are expected to grow to more than 45% in the next year or two.
This means that nearly half of consumers of payments services will be using cryptocurrencies in the very near future.
Capgemini found that increasing cross-border payment needs, higher transaction fees, and lack of standardization in global payments are prompting the move toward crypto.
While many blockchain firms and foundations are competing in the cross-border payment territory, Ripple Labs has been able to stand out from the crowd early on by partnering with banking giants and making its XRP-powered solutions go live across the globe, successfully.
The Capgemini report’s findings on crypto adoption, if proven true, could help Ripple further its goal of establishing XRP as a leading payments protocol worldwide.
As part of its move to drive interoperability with global payment networks, Ripple has become the first blockchain-focused payments company to join the ISO 20022 standardization committee.
This was in 2020, but Swift and the European Central Bank decided to shift the ISO 20022 migration date for cross-border payments from November 2021 to the end of 2022.
Days ago, however, the U.S. Federal Reserve has declared that Fed banks are going to implement the ISO 20022 system for Fedwire Funds Service (FFS). So, Ripple was locked and loaded two years in advance.