According to a report by global consulting firm McKinsey & Company, robust growth has once again returned to the global payments industry. The industry had faced significant challenges after the financial crisis of 2009, which led to a slowdown in consumer spending.
McKinsey noted in its report that payments revenue will grow by 8% each year, through 2018. In 2018, annual payments revenue is forecast to reach $2.3 trillion. According to McKinsey, payments revenue will account for 43% of all banking-services revenue in 2018, compared with 34% in 2009.
Growth will be driven mainly by China, according to the consulting firm. The world’s second-largest economy already accounts for the largest share of payments revenue. According to McKinsey, China will account for 40% of the worldwide increase in revenues during the next five years. The consulting firm also expects a rebound in Western Asia and developed Asia, which have struggled in recent years.
This morning, a U.S.-based integrated electronic payment solutions provider confirmed what McKinsey has forecast in its report. Payment Data Systems (OTCQB: PYDS) announced that it processed a record number of transactions during the second quarter of 2015.
The company said that credit card processing volumes in the second quarter of 2015 were the highest in its history for any previous quarter. Credit cards dollars processed during the second quarter of 2015 rose 9% over the same period in 2014. Credit card transactions processed during the quarter were up 6% on a year-over-year basis. This growth is more or less in-line with the forecast given by McKinsey for the global payments industry in its report.
PYDS reported that electronic check transaction volumes in the second quarter were the fourth highest in its history for any previous quarter. Electronic check transaction volumes during the second quarter rose 2% on a year-over-year basis.
Total dollars processed by the company during the second quarter crossed $806,800,000. This is the second highest quarterly figure in the company’s history.
Michael Long, CEO of Payment Data Systems, said that the company is very pleased with its credit card transaction volumes for the quarter and looks forward to a strong closing out of the second half of the year.
Long further said that all other forms of transaction processing remained strong for the first half of 2015 and the company expects this growth should continue for the remainder of 2015 as it brings its planned new products and services to the market.
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