Banks in Hong Kong, mainland China must buck up or lose US$61 billion in revenue to e-payment providers, Accenture says
- Revenue from e-payments may increase by 69 per cent to US$494 billion by 2025 in mainland China from US$292 billion this year, Accenture said
- Hong Kong’s payments revenue growth is slower by comparison, increasing by 12.6 per cent over the same period to US$10.7 billion by 2025.
Banks in China and Hong Kong could lose as much as US$61 billion in revenue from payments in the next six years as digital wallets and competition from technology companies and other non-banks continues to increase, according to a report by Accenture.
In new data to be released on Monday, Accenture found that 2019 payments revenue is expected to increase by 69 per cent to US$494 billion by 2025 on the mainland, from US$292 billion this year. Hong Kong’s payments revenue growth is slower by comparison, increasing by 12.6 per cent over the same period to US$10.7 billion by 2025.
Accenture, the consulting and professional services firm, said banks will be required to change their business models and focus on providing more value-added services to capture the growth in payments revenue.
“The payments industry has been under a lot of pressure from new competition and margins are likely to get squeezed even further because the world of instant, invisible and free payments is here to stay,” said Albert Chan, Accenture’s financial services practice lead for Greater China.
The report was based in part on the results of an online survey of 240 retail and corporate payments executives at global banks that was conducted in February and in March.
Accenture found that the worldwide payments industry could increase by more than US$2 trillion by 2025, with banks having the opportunity to capture US$500 billion of that growth.