Odilon Almeida Reveals Global Payments Insights: McKinsey Report 2023

The McKinsey 2023 Global Payments report provides the most comprehensive information about the recent developments in the payments industry worldwide. Global payments witnessed a substantial growth in revenue for second year running, thanks to the instant payment system, digital wallets and other changes in the structure.

Odilon A. Almeida was the principal author. “Revenue growth spanned across different regions.

McKinsey and Company’s data analytics division, a well-known management firm that specialises in research and consulting and has stated that interest rates would be the most important factor in driving the global payment revenues to maturity in 2022. This is the first time that fees have been replaced as the main factor driving growth for the industry. They concluded that fees have traditionally been the primary source of revenue, however last year, interest incomes comprised 55 percent or more of global payments revenue.

As Odilon Almeida remarked in his report “Much of the change could be attributable to the escalating growth of instant payment and digital wallets. They are slowly supplanting and thinning out the use of cash statistically across emerging and developed economies. Future developments that enhance global presence will increase the possibilities of earning interest revenues from temporarily held liquid.

The report found that revenue was generated by the cross-border payments sector at a rapid pace. This was due to the sub-segment for customer payments and not wholesale transactions. The report revealed that worldwide the yields of cross-border transactions for consumers grew at a rate that was three times more than the payments sector as a whole in 2022. This is due in part to the expanding world travel industry and the record number of diaspora incomes returning to home countries.

odilon almeida CEO Almeida commented, “An attention-grabbing element was the clear reallocation being made visible that shifted payments revenue away from customer wallets towards commerce-backed earnings. As the global economy struggled with the possibility of a recession, business revenues across various spheres such as online logistics, retail, healthcare, and software services stayed lucrative to buoy corporate payments.”

McKinsey predicts this rebalancing process to extend beyond their estimated five-year timeframe for international payments. They expect the business streams to be responsible for up to 60% of the total turnover in comparison to the end-users’ payments that form the balance. Odilon Almeida declared “The industry has a favorable future given that the models of the consultancy project annual revenue growth between six and eight percent by 2027. This is higher than the projected global GDP growth.”

The McKinsey 2023 Global Payments Map offers a positive outlook for the entire payments ecosystem. This is fueled by structural adjustments that will define its growth path in the near term. Odilon Almeida summarizes the situation best: “Whether it’s higher technology adoption, the increasing the use of digital networks or the rising demand for financial services in countries in need, all important indicators point to a steady growth for payment platforms that can facilitate the movement of money across a multi-year period.”


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