Capgemini - World Payments Report, 2023

The intro to Capgemini - World Payments Report, 2023 highlights the current challenges and trends in global commerce. It mentions the impact of factors like inflation, rising interest rates, stock market fluctuations, and geopolitical crises on the global economy. Despite the decline of cash usage, there has been a temporary rebound in cash due to the current volatility. The report predicts a significant growth in non-cash transactions, with a projected volume of nearly 1.3 trillion by 2023, and doubling to 2.3 trillion by 2027. This growth is attributed to the expansion of instant payment infrastructure, the adoption of open banking frameworks, and evolving customer expectations, regulations, and industry initiatives. The report also highlights the challenges faced by banks and payment firms, such as stressed revenue sources and increasing costs related to regulatory compliance and payments modernization. To maximize value, these organizations need to rebalance their focus between retail and commercial payments. Commercial payment instruments are gaining attention, and banks and payment firms need to quickly expand their capabilities in this area. Efficient cash management is a challenge for corporations, with lengthy cash conversion cycles and underwhelming cash management services from banks. Banks and payment firms need to offer efficient, lean, and experiential cash management services to corporate clients to create new revenue streams and cost-saving opportunities. The report emphasizes the importance of strategic partnerships between banks and corporate clients. By simplifying their back stack, performing with platforms, and engaging with corporate clients as strategic partners, banks can reduce the threat of disintermediation by FinTechs and increase cross-selling opportunities. Overall, the report urges banks and payment firms to address the challenges of cash management services delivery to corporates now, to unlock sustainable value and stay competitive in the changing landscape of global commerce.