This jump will come from both increased transaction volume but also a deeper penetration among specific industries and growth in areas such as business-to-business (B2B) payments and the buy now pay later (BNPL) market.
The B2B payments sector is expected to grow threefold by 2026, having lagged the consumer sector, to $2.6 trillion.
Risk to FIs
Financial institutions that move fast can benefit from this changing environment, but conversely, those that do not face risk.
The rise of non-banking platforms and software businesses integrating their own payment systems could detach customers from their banks, leaving them with the low growth, low margin role of a regulated entity.
But all is not lost, says Adam Davis, associate partner in Bain & Company’s FinTech practice.
