Global Payments Report, Oct 2024

The Global Payments Report for October 2024 predicts that revenue growth in the global payments industry will halve by 2028, with the Compound Annual Growth Rate (CAGR) dropping from 9% to 5%. Despite this, transaction-related revenues will continue to grow, particularly in Latin America, the Middle East, and Africa. Profitability is becoming increasingly important as investors in the industry shift towards a value-focused approach, with buybacks and dividends driving a significant portion of Total Shareholder Return (TSR) growth. Banks are losing ground to fintech companies in the payments space, requiring them to pivot their strategies to remain competitive. Instant payments systems are becoming more prevalent, necessitating organizations to adapt their operating models for deeper engagement. Tech modernization is essential for profitability, with a modular, scalable, cloud-ready architecture being crucial for improved unit economics. Early adopters of artificial intelligence (AI) technology are seeing improved performance and reduced costs. The development and adoption of digital currencies are on the rise, with central banks and regulators working on improving infrastructure and regulation to unlock their innovation potential. A renewed focus on risk and compliance is necessary to ensure sustained profitability in the industry.