The World Payments Report 2017, produced by global IT consultancy Capgemini and BNP Paribas, the banking group, also estimates that volumes generated by emerging economies will grow by 19.6% – or three times the rate of mature economies.
And the trend is particularly noticeable in emerging Asia – which includes China, Hong Kong and India – where the volume of digital payments is expected to grow 30.9% over the next three years.
The forecasts build on solid data covering global non-cash transaction volumes between 2014 and 2015, which are reported to have grown 11.2% to reach $433.1bn, the highest rate of growth in a decade.
Again, developing markets drove much of the increase, registering 21.6% growth over the period compared with 6.8% growth in mature markets.
However, as a recent Paypal survey of seven Asian markets confirmed, Capgemini and BNP Paribas found that cash remains king in much of the world, especially when it comes to low-value transactions.
Cash remains common in B2B transactions, particularly in emerging markets, but even in markets where cash usage for B2B transactions remain low, such as North America, wire and credit transfers are the most popular processes.
And while consumers appear to be quickly embracing digital payments, there is slower adoption when it comes to corporate transactions, PYMNTS.com reported.
“Although the rate of adoption is good, corporates are not leveraging all the benefits of the digital transformation to provide new propositions to their clients, to help them move away from checks and increase overall efficiency in reconciliation,” the report noted.
However, the latest World Payments Report also forecast that mobility, connected homes, entertainment and media will boost non-case transactions in the future, as will other channels, such as contactless, wearables and augmented reality.
Sourced from Capgemini, BNP Paribas, PYMNTS.com; additional content by WARC staff