How the Rise of Paytech is Reshaping the Payments Landscape (EY)

Summary

• The payments industry is undergoing radical transformation, with global payments representing a market size of around US$240 tn.p.4
• There are over 2,400 PayTechs globally, which are valued at over US$2.17tn as of June 2022.p.4
• The global real-time payments market size is valued at US$17 bn and is projected to reach US$193 bn by 2030 at a CAGR of 34.9%.p.11
• Embedded finance is expected to reach US$7 tn in value globally by 2030, with embedded payments representing approximately US$4.5 tn.p.24

Key insights

1. PayTechs account for over 25% of all FinTechs globally.p.4
2. Cumulative open banking payments in the UK exceeded 26.6 million in 2021, representing a year-over-year increase of more than 500%.p.9
3. Over six million regular users in the UK use open banking, comprising 5 million consumers and 1 million small businesses.p.9
4. A total of 56 real-time payments schemes were live globally in 2022.p.11
5. Wise processes an average of over £8 bn in cross-border transactions every month for more than 13 million users.p.18
6. Mobile commerce transactions reached 52% of all e-commerce spend in 2021, with mobile wallets holding a 49% share of global e-commerce payments.p.22
7. Digital wallet spending is forecasted to exceed US$10 tn by 2025, with China and India representing 69% of those transactions.p.22
8. Consumer spending over connected car e-commerce platforms is projected to reach US$265 billion by 2023.p.28
9. According to a BIS survey, 86% of central banks globally are actively researching CBDCs, 60% are experimenting with the technology, and 14% are deploying pilots.p.32