Emerging markets drive e-payment
THE PAYMENTS landscape in emerging markets is poised for transformation as growth in electronic payments accelerates due to disruptive market players and alternative business models, according to PwC.
“Over the next decade, we expect to see even faster changes in the payments industry, and emerging markets will be at the forefront of this transformation,” said Vilaiporn Taweelappontong, lead partner for PwC Consulting (Thailand).
The growing economic power of emerging markets – home to 85 per cent of the world’s people – and their potential to leapfrog developments in mature markets will aid the creation of a payments ecosystem.
The key factors shaping this transformation are the impact of technology, shifting customer expectations, changing global demographics, the rise of e-commerce and growing regulatory supervision.
The transformation will also be characterised by convergence across markets focusing on products and solutions, as well as by technology and business operating models linked to payments, which will be global in nature and reach.
PwC’s report looks at the dynamic nature of emerging markets, especially payments, which creates challenges that have never confronted the developed world but open up opportunities for innovation and growth.
Nearly 90 per cent of people under 30, who account for 75 per cent of online transactions, live in emerging markets. This tech-savvy generation has transformed digital solutions from being a convenience to an essential part of how people transact.
Emerging markets are a sweet spot to drive growth in the payments industry due to a large unbanked population and a renewed push to connect people to the financial system.
Two billion adults worldwide are unbanked, and some of the lowest rates of financial penetration are in emerging markets.
