capgemini report abt hidden payment growth-2016

1. Hidden Payments Volume Growth Will
Further Accelerate
 Payments processed through the non-bank systems, without the banking system’s
involvement.
 Due to lack of regulations, they are not obliged to report transactions.
 As a result these transactions go unreported & difficult to estimate hidden payment
volume.
$ 24.5-40.9 bn
Hidden Payments Estimated
Volume,2014
Trend 06

2. Trend Overview
Digital Wallets (non banks)
 With increasing popularity of mobile payments, digital wallets are likely to
become more widely used and their market share grow accordingly.
 Provide a flexible, hassle free and convenient way to transfer money.
 Ex. AliPay, PayPal
Virtual Currencies
 Digital currencies which were introduced in the market in 2008 & operate
independent of any bank or country.
 1138 cryptocoins with a market capital of US$5.79bn, but the focus is on bitcoin as it
represents 93% of the market capital.
 VC comprise a very small percentage of total payment transactions. But they have
got media attention and are likely to grow as more merchants and retailer accepts
like Dell and Expedia
 Litecoin, Zcoin

3. Closed loop cards and mobile apps
 Closed loop cards are gift card that a consumer can only use to make purchases
from a single company.
 Ex Reliance fresh card, Private label cards etc.
 Mobile apps such McDonald’s, CCD and Starbucks app.
 Transaction volume are estimated to be in range of 15.1 billion to 22.6 billion in
2014.
Mobile Money (non banks)
 Mobile devices have just made payments through mobile much easier and safer
without access to banking facilities.
 M-Pesa was launched in Kenya in 2007. No of active user of m-pesa was 13.9
million at march 31st ,2015

4. Implications
 These trends are increasing significant in future.
 Better fulfils requirement than traditional payment method.
 Concern- Data privacy and information security.
 Challenges- Fighting money laundering and tax evasion.