THE 2020 PAYMENTS ECOSYSTEM: The trends driving growth and shaping the future of the payments processing industry explained


Payments Industry Ecosystem 2020: Market Trends Overview – Business InsiderBusiness Insider logoClose iconMenu iconSearch iconAccount iconAccount iconBusiness Insider logoAccount iconAccount iconAccount iconBusinessLifeNewsSearch iconInsider logoClose iconAccount iconBusinessLifeNewsAllWorld globeFacebook IconTwitter iconLinkedIn iconYouTube iconInstagram iconBusiness Insider logoClose iconChevron iconChevron iconFacebook IconEmail iconLink iconTwitter iconLinkedIn iconFliboard iconMore iconClose iconLoadingChevron icon

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2019-12-17T20:27:00Z

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Business Insider Intelligence

The Payment Processing Industry Overview

The power dynamics in the payments industry are changing as businesses and consumers shift dollars from cash and checks to digital payment methods. Cards dominate the in-store retail channel, but mobile wallets like Apple Pay are seeing a rapid uptick in usage.

At the same time, e-commerce will chip away at brick-and-mortar retail as smartphones attract a rising share of digital shopping. Digital peer-to-peer (P2P) apps are supplanting cash in the day-to-day lives of users across generations as they become more appealing and useful than ever.

And change is trickling down into bigger industries long-dominated by cash and check, like remittances and business-to-business payments.

In response, providers are scrambling for market share. Skyrocketing consolidation that creates mega-giants is forcing providers to diversify in search of new volume.

Future of Payments

New entrants, especially from big tech, are threatening the leads of giants. And as payments become increasingly effortless, new types of fraud are threatening data security and privacy.

While demand for richer payments offerings is creating opportunities across the space, it’s also leaving the industry in search of ways to adapt to change that is putting trillions in volume and billions in revenue up for grabs.

The Payments Industry Explained

In this report, Business Insider Intelligence examines the payments ecosystem today, its growth drivers, and where the industry is headed. It begins by tracing the path of an in-store card payment from processing to settlement across the key stakeholders. That process is central to understanding payments, and has changed slowly in the face of disruption.

The report also forecasts growth and defines drivers for key digital payment types through 2024. Finally, it highlights three trends that are changing payments, looking at how disparate factors, such as new market entrants and surging fraud, are sparking change across the ecosystem.

The companies mentioned in this report are: ACI Worldwide, Adyen, Amazon, American Express, Apple, Bank of America, Braintree, Bento for Business, Capital One, Citi, Diebold Nixdorf, Discover, Earthport, Elavon, EVO, Facebook, First Data, Fiserv, FIS, Global Payments, Goldman Sachs, Google, Green Dot, Honda, Ingenico, Intuit, JPMorgan Chase, Kabbage, Macy’s, Mastercard, MICROS, MoneyGram, NatWest, NICE, NCR, Oracle, Paymentus, PayPal, Rambus, Remitly, Ria, Samsung, SiriusXM, SF Systems, Square, Stripe, Synchrony Financial, The Clearing House, Target, Tipalti, Toast, Transfast, TSYS, Venmo, Verifone, Vocalink, Visa, Walmart, Wells Fargo, WePay, Western Union, Xoom, Zelle

Payment Industry Trends

Here are some of the key takeaways from this report:

  • In-store payment methods are still on the rise in the US, comprising 89% of retail volume this year. Credit and debit cards continue to lead the segment, as cash and check usage slowly ticks downward. But surging contactless penetration is set to bring mobile in-store payments to prominence for the first time in the years ahead.
  • Surging e-commerce will eat away at in-store payments’ share of overall retail. PCs will continue to lead the way, but smartphones will inch closer to being the top channel for purchasing, in turn driving growth. At the same time, new payment tools, like voice assistants, wearables, and even cars will begin to give consumers even easier ways to pay.
  • The digitization of payments isn’t just contained to retail, though, with mobile P2P payments, digital remittances, and digital business payments continuing to blossom as change spreads through the ecosystem.

In full, the report:

  • Traces the path of an in-store card payment from processing to settlement across key stakeholders.
  • Discusses emerging alternatives to card payments.
  • Examines the shifting role of key categories of providers as the ecosystem digitizes and matures.
  • Forecasts growth in key categories, including in-store payments, e-commerce, mobile P2P payments, remittances, and B2B payments.
  • Identifies three trends set to shape payments in 2020 and evaluates what changes the ecosystem is set to undergo.

Interested in getting the full report? Here’s how to get access:

  1. Business Insider Intelligence analyzes the payments and commerce industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. >> Check if your company has BII Enterprise membership access to the full report
  2. Sign up for the Payments & Commerce Briefing, Business Insider Intelligence’s expert email newsletter keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >> Get Started
  3. Purchase & download the full report from our research store. >> Purchase & Download Now

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