APAC leads globally in terms of cashless transactions – Survey

Evolving risks like geopolitics and cybersecurity are a call for better cash management services.

Asia Pacific’s (APAC) digital payments are expected to have an annual growth rate of 19.8% by 2027, the highest in the world.

The Capgemini Research Institute's 2023 World Payments Report also predicts that global non-cash transaction volumes will reach 1.3 trillion by 2023. 

APAC followed by 10.7% in Europe and 6.5% in North America.

As consumers and businesses increasingly adopt digital payment methods, this growth is expected to accelerate to 2.3 trillion by 2027, with an annual growth rate of 15%. 

The expansion of digital payment infrastructure, regulatory changes, and the rise of open banking are transforming how customers and businesses make payments for goods and services. 

By 2027, new payment methods such as instant payments, e-money, digital wallets, account-to-account transfers, and QR code payments are expected to make up around 30% of total transaction volume, while traditional non-cash payments like checks, direct debits, cards, and credit transfers will comprise approximately 70% of overall non-cash transactions.

The report also highlights that corporate treasurers are dissatisfied with current cash management services (CMS). Over half of corporate treasurers surveyed believe that the increasing globalisation of trade and ongoing supply chain disruptions have heightened the demand for effective CMS. 

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A third cited evolving risks like geopolitics and cybersecurity as reasons for the critical importance of CMS, while nearly 30% mentioned rising inflation as a factor driving the need for better cash management.

Despite having an average of more than 27 banking relationships to meet treasury needs, corporate executives expressed dissatisfaction with current CMS offerings. 

Issues include dispute negligence, poor credit risk assessment, and delayed or duplicate payment processing. Legacy infrastructure is cited as the biggest hindrance to providing efficient CMS.

The report involved insights from the Global Large Businesses Survey 2023 and the Global Banking and Payments Executive Surveys and Interviews 2023, with participants from 17 markets. 

The surveys questioned senior executives in corporate treasury departments of large corporates and interviewed executives from leading banks, financial service organizations, payment service providers, industry associations, and central banks across the Americas, Europe, and Asia-Pacific & Middle East.