Nearly 90% of people under 30 years reside in emerging markets and the same demographic also accounts disproportionately for online transactions.
Majority of the two billion unbanked population resides in emerging markets
89% of payment executives in emerging markets believe that products and business models need to change to meet future customer expectations.
A new breed of mobile and FinTech innovators are disrupting the payments market with innovative customer centric business models.
The payments landscape in emerging markets is expected to transform on the backbone of accelerating growth in electronic payments given the advent of new and disruptive market players and alternative business models.
The growth of economic power within the emerging markets and their potential to leapfrog developments in mature markets will aid the creation of a state-of-the-art payments ecosystem, which will set the pace for markets worldwide.
The key factors shaping this transformation will be the impact of technology, shifting customer expectations, changing global demographics, the rise of e-commerce, and the growing regulatory supervision. The transformation will also be characterised by convergence across markets focusing on products and solutions and by technology and business/ operating models linked to payments, which will be global in nature and reach.
PwC’s report ‘Emerging Markets – Driving the Payments Transformation’ looks at the dynamic nature of emerging markets, especially payments, which creates challenges that have never confronted the developed world, but also opens up opportunities for innovation and growth.
Ranesh Hariparsad, a Partner in PwC’s Financial Services Division, says: “The dynamic and evolving nature of emerging markets opens up a multitude of opportunities for innovation and growth. Payments is just one area where this dynamism is already well-established.
“South Africa’s vast payments ecosystem has increasingly been growing and innovating at a world leading pace, while at the same time providing easier access payment solutions to poor and remote communities. South Africa has seen great success in various forms of payment solutions. There is also a huge market for remittance platforms in the country.”
Hariparsad comments further: “Over the next decade we are likely to see even faster changes in the payments landscape, building on the accelerating growth in electronic payments and the advent of new and disruptive market players. In addition, cutting edge technology will reshape the next generation payment systems, with both FinTech and established players driving innovation.”