McKinsey – Global Payments Report, 2023

The introduction to McKinsey's Global Payments Report highlights the ongoing changes in the payments industry and the opportunities for growth and margin improvement across different regions and products. It emphasizes that the industry has experienced structural changes, particularly in instant payments and digital wallets. The report presents key findings from McKinsey's Global Payments Map, which covers more than 25 payment products in 47 countries, accounting for 90% of global GDP. Some of the notable findings include double-digit global payment revenue growth for the second consecutive year and India's entry into the top five countries for payments revenues, driven by cash displacement. One significant development is the increased contribution of interest-based revenue to overall revenue growth, accounting for nearly half of the growth for the first time in several years. Additionally, the report highlights the decline in cash usage globally by almost four percentage points in 2022. It also mentions that electronic transactions have been growing at a significantly higher rate than overall payments revenue over the past five years. The authors of the report provide a historical perspective, discussing the progress the payments industry has made and how it has gone through three distinct eras. They suggest that the industry could be on the cusp of a fourth era, referred to as "decoupling," which presents various opportunities for banks and other payments players. Overall, the report showcases the resilience of global payment revenues, surpassing regional challenges and growing at a rate higher than the long-term trend. In 2022, payments revenues reached an all-time high of over $2.2 trillion, demonstrating the industry's strength and providing insights into its future direction.