Digital wallets and instant payments have helped to boost revenues for banks and other players in the payments industry. Liquidity revenues for 2022 reached $750 billion globally, senior partner Marie-Claude Nadeau and coauthors note. By region, Asia–Pacific led the way, driven largely by the commercial segment, at 63 percent, compared with 38 percent for consumer revenues. Cross-border transactions could be one of the biggest growth opportunities for the payments industry going forward.
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A square dual-axis area chart with the title “Liquidity revenues in 2022 accounted for $750 billion globally, largely driven by Asia–Pacific.” The chart shows global payments revenues in 2022, by type and location. The y-axis reflects the percentage share of global payments revenues, and the x-axis reflects the value of the same revenues in trillions of dollars. The y-axis is split into 2 main segments: a commercial share (53% of total) and a consumer share (47%). Each of those segments is further broken down as follows: cross-border, account-related activity, domestic transactions, or credit cards. The x-axis is split regionally into 4 areas: Asia–Pacific at $1.0 trillion; North America at $0.6 trillion; Europe, Middle East, and Africa at $0.4 trillion; and Latin America at $0.2 trillion. Across regions, account-related liquidity and domestic transactions tend to occupy the highest share of the commercial segment, whereas, in the consumer segment, several regions are card driven.
Source: McKinsey Global Payments Map.
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To read the report, see “On the cusp of the next payments era: Future opportunities for banks,” September 18, 2023.