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Digital payments to hit record US$4.7 trillion in 2020

Digital payments to hit record US$4.7 trillion in 2020

Digital payments have had a huge impact on the global payments industry traditionally dominated by cash, credit cards, debit cards, and prepaid cards. The surge of smart devices and a growing eCommerce market has led to the rapid adoption of digital payments, in both developed and emerging countries.

According to data gathered by LearnBonds.com, the worldwide digital payments market will jump to a record US$4.7 trillion transaction value this year, with a 15.3% year-over-year growth rate. This rising trend is set to continue in the following years, with the entire market reaching US$6.7 trillion by 2023.

China is the Leading Digital Payments Market Globally

The global digital payments market is growing at an average annual rate of almost 14% from 2017 to 2023, revealed the Statista Survey on fintech industry. Digital commerce represents the most significant segment of the market, forecast to generate up to 67% of the transactions in the next three years.

However, mobile point of sale payments are set to see the most significant rise in the future, jumping from US$745bn transaction value in 2019 to US$2.1 trillion by 2023. The average transaction value per user in this segment will also increase from just over US$791 in 2020 to $1,289 in 2023.

By geography, China is set to stay the most prominent digital payments market in the world, with 49% of the global market share by 2023. Just two decades ago, China was primarily a cash economy. However, e-commerce giant Alibaba and gaming group Tencent have exploited the country’s widespread smartphone ownership and helped drive a massive shift among Chinese consumers towards digital payments. Today, Chinese companies receive digital payments and use them as an entry point to offer consumers a range of both offline and online products and services.

The Statista report shows that together, China and the US will account for nearly 70% of the global digital payment’s transaction value by 2023. Although PayPal, Venmo and Square dominate the US alternative payments market, technology giants like Google, Apple, and Facebook, as well as large banks such as JP Morgan, Chase, and Wells Fargo, are also pushing into this market. The goal of this massive shift is to increase the speed of money transfers for consumers, reduce transaction costs, and weave payment services into social networks.

Far behind the two leading countries, the UK ranked as the third biggest digital payments market in the world, with US$176 billion transaction value in 2020. Japan and Germany follow with US$173.1 billion and US$127.4 billion, respectively. Statistics indicate that the rank of the leading regions will remain the same over the next three years.

The Booming of P2P Mobile Payments

The global peer-to-peer digital payments market is also booming, with consumers sending billions of dollars through digital apps. The Statista figures confirm the US has the biggest peer-to-peer payments market globally, with Venmo, Zelle and Square as dominant players.

The US peer-to-peer payments industry is competitive, with both financial institutions and fintech start-ups offering innovative services and creating sophisticated networks that provide real-time payments. The statistics indicate that the unified market will grow at a compound annual growth rate of over 20% and reach a Us$381 billion value by 2022.

As one of the liveliest markets for fintech firms globally, the UK is also currently witnessing a rise of peer-to-peer-related growth. The entire UK’s peer-to-peer payments industry is forecast to jump to US$70 billion by 2022, with a compound annual growth rate of 23%.

However, the Indian market is the fastest growing one globally, spiking with an average annual growth rate of over 72% from US$10.5 billion in 2017 to US$159.2 billion in 2022. Radical government efforts, especially the demonetization efforts of November 2016 and the launch of government-owned instant real-time payment system Unified Payments Interface (UPI) in the same year, are the biggest drivers of this incredible growth. The UPI transactions already hit more than half the value of card transactions in the country. Read the full story here: https://learnbonds.com/news/digital-payments-to-hit-record-4.7trn-in-2020/


 

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.