The World Payments Report 2010 produced by Cap Gemini, The Royal Bank of Scotland and EFMA (European Financial Management and Marketing Association) explores the global payments market and the key challenges presented by the evolving payments landscape. It draws on 13 executive interviews with 11 major banks (including ABN Amro, BNP Paribas, Citi), and 2 clearing houses to balance global. regional and local points of view. This year’s report covers the following countries: Australia, Austria, Belgium, Brazil, Canada, China, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, Poland, Portugal, Russia, Saudi Arabia, Singapore, Slovenia, South Africa, South Korea, Spain, Sweden, Turkey, the Ukraine, the U.K. and the U.S.

Now in its sixth year, , the report describes how banks will need to consider their options carefully for optimising their payments businesses, as the transformation of the payments value chain is accelerating. It then focuses on how banks will need to employ an intense parallel strategy, comprising revenue-focussed and cost-focussed initiatives, leverage sourcing strategies and consider mechanisms such as Payments Hubs to make these parallel strategies feasible and allow banks to achieve more with less.

The report is divided into 3 main sections

1. World Non-Cash Payments Markets and Trends
2. Payments-Related Regulatory Update
3. The Transformation of the Payments Value Chain Is Accelerating

It has a case study on Paypal. PayPal has established itself as a global payments processor, facilitating €51.3 billion in total payments volume (TPV) in 2009 and making it the world’s largest online Payments Service Provider (PSP). In 2009, PayPal accounted for almost 6% of all global online payment transactions (and 7.5% of online payments in the U.S.), capturing a significant share of revenues that could have gone to the banking industry. Along with its international expansion, the proportion of revenues derived solely from eBay has declined as a percentage of total revenues—to 42% at the end of 2009. In 2009, PayPal revenues were around €1.89 billion, nearly one-third of which was derived from U.S. sellers and nearly 40% from cross-border transactions.

Key findings

• Global payment volumes  continued to grow, despite the financial crisis.
• Globally, use of non-cash payment instruments continued to grow and  cards remain the preferred non-cash payment instrument (accounting for  more than 40% in most markets  and 58 % globally). Rate of growth was faster in developing economies.
• Alternative payment service providers (PSPs) have made significant strides in m-payments and e-payments, even though they still account for a small percentage of total worldwide transaction volumes.
• Cash-in-circulation in the Eurozone maintained a steady growth of about 11% per year since 2002, representing a significant cost for global economies
• Several developments have taken place in last year towards SEPA and PSD in Europe
• Regulatory pressures continue to affect the payments industry worldwide
• New technology and competition are making the payments universe more complex and expansive and, together with the effects of the economic crisis, new regulatory initiatives are acting as catalysts to the further evolution of the industry

You can download the report from

• Cap Gemini site (requires login)
• RBS Sibos website (pdf)
• EFMA (Only members can download. Requires login)

The report presentation and roadshows will be held at the following locations on the dates

• Vienna, Thursday 4 November
• Stockholm, Monday 15 November
• London, Wednesday 17 November
• Frankfurt, Monday 22 November
• Utrecht, Wednesday 1 December
• Brussels, Thursday 2 December