Worldline - 2020 Universal Registration Document

THE PAYMENT INDUSTRY Key market trends and drivers of change

New entrants: New “Fintechs”, mobile operators and ● GAFAs (Google, Apple, Facebook, Amazon etc.) or BATX (Baidu, Alibaba, Tencent and Xiaomi) are now part of the payment ecosystem and threaten to displace the incumbents. As a consequence, non-cash payment transactions have grown significantly in recent years. Covid-19 has accelerated the adoption of electronic payment means instead of traditional cash payments. However, due to

the shutdown of certain sectors, such as travel and entertainment, the payment volumes related to these sectors has been severely impacted. Previous forecasts on global non-cash volume growth have then been revisited and there will still be uncertainty until the pandemic situation stabilizes. Indeed, the 2020 World Payments Report has revised its previous projections downwards from 16.4% global non-cash transaction growth 2019-2023 to 11.5%.

NUMBER OF WORLDWIDE NON-CASH TRANSACTIONS (IN BILLIONS) , BY REGION, 2019-2023 (SOURCE: 2020 WORLD PAYMENT REPORT, CAPGEMINI)

B

1,093

66 29

946

63 25

839

198

766

59 22

708

196

56 19

53 17

192

308

185

273

179

247

229

216

493

391

319

278

244

2019* Non-cash transactions (billions) 2020F

2021F

2022F

2023F

CAGR (2019-23F)

Growth (2019-20F)

11.6%

13.7%

Middle East and Africa

5.6%

6.0%

Latin America

3.0%

2.5%

North America

6.2%

9.3%

Europe

13.9%

19.3%

Asia-Pacific Global

11.5% 8.1%

Note: *Non-cash transactions data for 2019 is sourced the from countries’ central banks. In case of data unavailability, forecasted figures are used.

Source: Capgemini Financial Services Analysis, 2020; ECB Statistical Data Warehouse, 2018 figures released November 2019; BIS Statistics Explorer, 2018 figures released December 2019; countries’ central bank annual reports, 2019.

Universal Registration Document 2020

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