World Report Series 2023

Payments

WHERE IS THE CASH?

ACCELERATE CORPORATE CASH MANAGEMENT
TRANSFORMATION TO BUILD VALUE
2 World Payments Report 2023

CONTENTS

Foreword 3

Executive Roundtable participants 4

Executive summary 5

Innovation, regulation, and profit dynamics

shake payments status quo 6

Enterprise cash management is a challenge to be met 18

Forge strategic corporate relationships underpinned

by efficient cash management 25

In conclusion 35

Methodology 36

Partner with capgemini 37

 World Payments Report 2023 3

FOREWORD
In the recent past, the World Payments Report focused primarily on retail payments. After rebounding
from the pandemic, business-to-consumer payments was the fast-moving sector; however, in addition
to retail payments, we now see a significant opportunity for banks and payment service providers
(PSPs) to support corporate treasuries and commercial enterprises.

Capgemini’s World Payments Report 2023 found that non-cash transactions remained resilient as
consumers and small and large businesses adopted digital payment schemes. Our data suggests that
non-cash transaction volume growth will continue accelerating at a 15% CAGR from 2022 to 2027
due to improving macroeconomics, expanding digital payment infrastructure, and a proliferation of
new payment instruments. As global regulations, initiatives, and innovations surge, new payment
instruments and use cases abound: banks and PSPs are finding it costly to juggle these simultaneous
changes. Banks and payment firms will have to re-balance their focus on retail and commercial
payments to unlock new value.

We talked with corporate treasurers across multiple industries, and more than half told us they
urgently need effective and efficient cash management services (CMS) because of ongoing trade
globalization and supply chain disruptions. Another third said evolving risks (geopolitics and
cybersecurity) make CMS critical, while nearly 30% called out rising inflation as being behind their
growing need for better cash management. And therein lies the opportunity.

One-size-fits-all solutions don’t work for today’s enterprises, and corporate treasurers say they
are dissatisfied with their banks and seek more relevant advice and strategic partnerships. They
want support to mitigate long cash conversion cycles and issues such as poor credit risk assessment,
delayed payment processing, inefficient working capital management, and supplier overpayment.
In short, they want 24/7 visibility into their organization’s cash.

So how can banks and PSPs help ?

Our report outlines strategies for financial firms to optimize their cash management value chain
to offer business and technology advice to enterprise clients. Building a digital foundation is the
first step, with a future focus on leveraging cloud-native platforms. Firms can augment their CMS
productivity and performance through virtual account management for increased efficiency,
rationalized cash management structure, and automated processing.

While we cannot predict how the economic world stage will play out over the next year, we believe
strong relationships with corporate treasuries can be lucrative, win-win alliances.

Anirban Bose
Financial Services Strategic Business Unit CEO
& Group Executive Board Member, Capgemini
 4 World Payments Report 2023

EXECUTIVE ROUNDTABLE
PARTICIPANTS
The Executive Roundtable participants for our World Payments Report 2023
included top leaders and acknowledged payments industry experts from leading
banks. They helped steer our report content through ideation, hypotheses
refinement, and validation of key findings. We are grateful they generously
shared their time, experience, and vision.

Nicolas Cailly Paul Van Sint Fiet

Global Head of Payments & Cash Management Head of Cross-Currency Solutions, APAC
Société Générale Corporate and Investment Banking JPMorgan Chase & Co.

Wim Grosemans Sailesh Panchal

Global Head of Product Management - Director
Payments & Receivables - Cash Management Digital Transformation Advisory
BNP Paribas TSB Bank

Jan Rottiers Rachel Whelan

Head of Liquidity Management Solutions for Corporates Managing Director, APAC Head of Corporate
BNP Paribas Cash Management & Global Head of Payments
& Transactional FX Product Management
Deutsche Bank
 World Payments Report 2023 5

EXECUTIVE SUMMARY
Since 2022, a steep rise in inflation, rising interest and uncertain growth. Yet, inefficient working capital
rates, tumbling stock markets, waning consumer management often traps cash within the enterprise-
confidence, supply chain disruptions, and escalating banking value chain. As businesses struggle to access
geopolitical crises have affected global commerce. a 360-degree view of their cash, 79% of corporate
Current volatility has even driven a temporary rebound treasurers complain about lengthy cash conversion
in cash use, indicating that reliance on paper notes cycles. Despite having multiple banking relationships,
remains despite its general decline. 70% of corporate treasurers say banks’ cash
management services are underwhelming.
INNOVATION, REGULATION, From slow client onboarding and lackluster bank-
to-enterprise connectivity to inaccurate reconciliation
AND PROFIT DYNAMICS SHAKE and cash forecasting, banks face multiple challenges in
PAYMENTS STATUS QUO offering efficient, lean, experiential cash management
Per our estimates, non-cash transaction volume services to corporate clients. Outdated and increasingly
globally will reach almost 1.3 trillion by 2023, a nearly expensive systems and slow or disconnected
16.6% year-over-year growth rate. And by 2027, non- transformation initiatives result in underdeveloped
cash transaction volumes are expected to reach about cash management capabilities for banks and payment
2.3 trillion, doubling since 2022. This exponential firms. Banks are missing a significant opportunity to
growth is driven by the expansion of instant payment create new revenue streams and cost-saving levers.
infrastructure in major markets, ongoing adoption
of open banking frameworks, and more: evolving FORGE STRATEGIC CORPORATE
customer expectations, regulations, and industry RELATIONSHIPS UNDERPINNED BY
initiatives are catalyzing the fast adoption of new
instruments and instant payments.
EFFICIENT CASH MANAGEMENT
Managing the volume, velocity, and variety of End-to-end digital transformation in transaction
these simultaneous changes comes at a cost for banking, including effective cash management services
banks and payments firms – especially when revenue for corporates, requires top-down commitment,
sources are under pressure. Payment executives cohesive planning, and a unified purpose for structural
surveyed in this report indicate that nearly 80% of reforms. Despite the fact that large corporates have
traditional payment revenue sources (fee, fund, and many banking relationships, there is still a sizeable
float income) are stressed. In parallel, costs related opportunity for banks to step up as strategic partners
to regulatory compliance, scheme implementation at the regional or domestic level. We offer banks and
(including ISO20022 and SWIFT gpi), and payments payment firms a three-layered strategy to nurture
modernization leave limited resources to invest in strategic cash management relationships with
innovation. corporate clients:
Banks and payment firms need to rebalance • Simplify the back stack to enable innovation and
their focus between retail and commercial payments agility
to maximize value. Globally, the overall value of • Perform with platforms to boost cash
commercial payment transactions surpasses that of management efficiency
retail payments – 56% versus 44% of total transaction • Engage with corporate clients as strategic
value. Commercial payment instruments such as partners, not service providers.
virtual cards, account-to-account payments, and When successful, sustainable value can be
digital wallets are gaining attention from corporate unlocked. Sixty-seven percent of bank executives
treasurers: very quickly, commercial payments are acknowledged that strategically partnering
catching up with the digitalization trend – prompting with corporate clients reduces the threat of
banks and payment firms to act now and act fast to disintermediation by FinTechs and others; and 57% of
expand commercial payment capabilities. payments executives said strategic banking partners
enjoy increased cross- and up-selling opportunities
ENTERPRISE CASH MANAGEMENT because of these relationships. The time to solve the
IS A CHALLENGE TO BE MET challenges of cash management services delivery to
corporates is now.
Maximizing value from commercial payments
requires banks and payment firms to engage and meet
the changing expectations of enterprise clients. Cash
management is a constant and important challenge
for corporations facing macroeconomic headwinds
 6 World Payments Report 2023

Innovation, regulation, and profit

dynamics shake payments status quo
For banks and payment firms, 2022 was Non-cash transactions
unprecedented. High inflation, waning consumer proved resilient amid global
16.6%
year-over-year
confidence, rising interest rates, recessionary
fears, and tumbling stock markets left a volatile,
uncertain, ambiguous, and complex environment
uncertainties
Non-cash transaction volumes maintained
growth rate in in their wake. Thank s to unprecedented upward momentum as consumers and
global non-cash government stimulus, consumers and businesses businesses adopted digital payment schemes.
transactions, 2023 began the year robustly across most major Our estimates suggest that from 2022 to
estimate markets. But while the jump-start boosted market 2027, non-cash transaction volume growth will
liquidity, global supply chains were stressed by continue accelerating at a 15% CAGR due to
inflationary pressure. expanding digital payments infrastructure and
Indeed, high inflation triggered cost-of-living a proliferation of new payment instruments
crises across the globe. And as seen previously in (Figure1). Let’s take a closer look at trends by
the first year of the pandemic (2020) and during the geographic region.
2007–2008 recession, cash use picked up during an
economic crunch, decelerating the 13-year decline.1 Europe
According to the Nationwide Banking Society (UK), Non-cash volumes compound annual growth of
2022 cash withdrawal volumes increased by 19% 10.7% is expected from 2022 to 2027 thanks to
year over year, indicating at least a short-term expansion of instant payments, open banking
reversal in declining cash use.2 regulatory (PSD3) enhancements, and an EU
Cash remains an important payment instrument Digital Identity Wallet 2023 pilot initiative. While
around the world, alongside digital alternatives. Eurosystem launched the Target Instant Payment
Yet, despite its near-term convenience, global use Settlement System (TIPS) in November 2018, its
of cash continued to dip during 2022.

Figure 1. Expanding digital payments infrastructure fuels non-cash transaction volume growth

Growth CAGR
Volume in billions ’22F–’23F ’22F–’27F
2,296.7
56.9 Global 16.6% 15.0%
189.8
MEA 14.1% 14.1%
298.1

1,538.1 Latin 15.8% 15.7%

38.8 America
1,334.0 482.2
124.1
33.6
1,143.9 106.1 245.8 North 6.2% 6.5%
1,016.3 29.5 America
24.5 91.6 231.6
72.1 218 364.1
548.0 Europe 12.4% 10.7%
204.7 325.6
14.3 1269.6
44.3 289.8
160 258.6
765.3 APAC 23.7% 19.8%
166.6 637.1
456.4 515.1
162.8
2017 2021 2022F 2023F 2024F 2027F
Sources: Capgemini Research Institute for Financial Services Analysis, 2023; ECB Statistical Data Warehouse; BIS Statistics
Explorer; Countries’ central bank annual reports.
Note: Forecasted figures were used when data was unavailable. Figures are forecasted for 2022 and beyond.
 World Payments Report 2023 7

adoption was tepid, with Single Euro Payments development of instant and real-time payment
Area instant credit transfers (SCT Inst) accounting infrastructure across critical jurisdictions
for just 14% of all SEPA credit transfers during the (including India, China, Singapore, Australia, and
first half of 2023. The European Union proposed Thailand) has been driving adoption of digital
amendments to the 2012 SEPA regulation in 2022 payments. As a result, APAC is now on track to
to eliminate adoption barriers and streamline comprise more than 50% of global non-cash
instant payment (IP) system use.3 payment volumes and will likely register an
Moreover, the European Payment Initiative accelerated 19.8% compound annual growth rate
(EPI) is piloting an IP scheme in 2023 after for 2022–2027.
acquiring iDeal, a Dutch payment method that To further improve domestic and cross-
enables consumers to pay online through their border digital payments’ convenience, efficiency,
bank, and Belgium-based Payconiq, a mobile cost, and acceptance, APAC markets are also
payment and processing platform. The EPI building bilateral and multilateral payment
pilot will include digital wallets and an open- infrastructures. For instance, in 2021, Thailand’s
banking instant payment system in Germany PromptPay and Singapore’s PayNow real-time
and France. The European Central Bank (ECB) payment infrastructure were linked.9 In 2021,
backed payment-integration initiative said the Singapore also connected its real-time payment
EPI scheme might eventually have buy now, infrastructure with Malaysia’s DuitNow.10
pay later (BNPL) and digital identity features.4 Singapore and India (UPI) also aim to join real-
In parallel , t he Immediate Cros s - B order time payment infrastructures. Moreover,
Payments (IXB) initiative from EBA Clearing, Singapore, Indonesia, Malaysia, the Philippines,
SWIFT, and The Clearing House in the United and Thailand have all announced plans to
States is aiming to enable instant processing integrate regional QR payment systems.
of USD and EUR currency exchanges in 2023 to
strengthen the US and European digital payment
adoption rate.5

North America
As the region catches up to the instant payment
revolution, non-cash payment volumes are
projected to rise at a 6.5% CAGR (2022–2027).
The US Federal Reserve’s FedNow Service went
live on July 20, 2023. FedNow aims to create a
European-style real-time payments network and
will function in addition to the RTP Network by
The Clearing House, which has been operational
since 2017. Noteworthy is the fact that RTP and
FedNow only supports push payments: this
means payment types like recurring payments,
subscription payments, and P2P payments that
require pull capabilities are not supported by
FedNow.6
The new instant payment service will need
further investments to build new capabilities and
propel the US market to double-digit growth. In
parallel, the US Consumer Financial Protection
Bureau is developing an open banking framework
and rules that it expects to finalize by 2024.7
Canada’s Real-Time Rail is slated to go live in
2023, 8 and Canada has also announced open-
banking launch plans for 2023. The two initiatives
will bolster non-cash volume growth in Canada.

Asia Pacific
The region lacked domestic digital payment
infrastructures and had heterogeneous payment
rails across key markets – unlike in Europe, where
SEPA instilled standardization. But during
the last decade, government-backed (or led)
 8 World Payments Report 2023

Middle East Africa

A growth trajectory similar to that being realized The continent is catching up to its neighbors in
in APAC is unfolding here. The region has terms of non-cash transaction volume. Studies
been heavily cash reliant despite high mobile say 18 African nations are developing domestic
penetration. However, regulatory reforms and instant payment systems. Moreover, three
maturing digital payment infrastructure are development projects aim to build regional
poised to boost non-cash volumes CAGR by 14.1% instant payment platforms.14 Such initiatives will
in 2022–2027. Open banking reforms are already likely boost non-cash payment capacity in the
underway in the region. Bahrain, Saudi Arabia, region.
the UAE, and Jordan are beginning to embrace
open banking frameworks.11 Latin America
In parallel, several Middle East markets are The region has been consistently developing
also launching instant payment schemes: Saudi instant payment infrastructure. Non - cash
Arabia launched SARIE in 2021,12 and the UAE volumes in the region are trending toward
is set to launch its instant payment platform in 15.7% compound annual growth from 2022 to
2023.13 The region is also working to integrate 2027. Ten Latin American countries are pursuing
payment rails through initiatives such as the Arab or launching instant payment schemes led by
Monetary Fund-owned Buna payments platform Pix, created by Banco Central do Brasil (BCB)
and AFAQ, a regional payments system provided in 2020.15 Since its launch, Pix has solidified its
by the Gulf Payments Company in cooperation position as a preferred Brazilian payment option;
with Saudi Central Bank. BCB aims to expand Pix’s reach for instant cross-
border payments among a bloc of countries by
2025.16
Post-Covid, the shift to digital payments has stuck
with consumers. Developing regional digital payment Evolving regulations and industry
infrastructure and regulations will drive the next phase of initiatives are driving payments
movement to a less-cash economy. Cross-border payment competition and innovation
options will develop along leading trade corridors such
The dynamic payments sector has been at
as the Middle East to China, India, and Hong Kong further
the forefront of innovation, with a reputation
boosting non-cash payments in the region.”
for adapting quickly to challenges and changes.
Regulations and industry initiatives have kept
pace with changing times to ensure resilience,
Ali Imran transparency, security, fair competition, and
COO, Commercial Bank of Dubai quick- to - market innovations (Figure2). In
particular, four key industry initiatives and
regulations bear further discussion here.

Nexus Gateway sets sights on cross-border

payment efficiency
A key trend in payments since 2020 has been To overcome such challenges, the Bank for the
the bilateral and multilateral integration International Settlements (BIS) built a network
of real-time and instant payment systems prototype, Nexus Gateway, to standardize the
between different jurisdictions.17 From Asia multilateral linking of IP systems. The pilot
to the Middle East, Africa, and Latin America, was conducted in 2021 to connect the systems
markets are attempting to integrate instant of Europe (TIPS), Malaysia (DuitNow), and
payment infrastructure for greater cross- Singapore (PayNow); in addition, BIS aims to
border payment efficiency, transparency, connect instant payment systems in five Asian
and speed at a lower cost.18 However, cross- markets – Indonesia, Malaysia, Philippines,
linking is complicated because of foreign Singapore, and Thailand – during a 2023
exchange (FX) conversion, compliance checks, testing phase. Scaling the Nexus initiative
heterogeneous messaging, and var ying should help ease cross-border transactions
technical standards. and digitalize remittances flow.19
 World Payments Report 2023 9

Tokenization • Allows businesses to offer card - on - file

Within the risk reduction category, tokenization transactions for seamless subscription billing
is essential as banks and payment firms pursue and recurring payments
ecosystem orchestration so that financial data • Enables one-click checkout for e-commerce
can flow among multiple parties safely, securely, sites
and instantly. Tokenization is gaining traction in • Let s customer s store tokenized c ards
areas where cyber fraud protection is necessary conveniently in Apple Pay and Android Pay
around sensitive data. The most popular is credit wallets.
card tokenization, where an algorithmically
generated token replaces the card’s primary Central bank digital currencies
account number. Tokens can be saved in wallets Another key initiative shaping the future of
or passed through payment rails without risking payments is the development of central bank
data exposure. The process simplifies payment digital currencies (CBDCs). As of June 2023,
card industry security compliance by limiting the 130 countries representing 98% of global GDP
number of systems storing customers’ sensitive were exploring CBDCs, a significant jump from
data. Beyond compliance, tokenization also 2020 when only 35 countries were considering
improves payment processing speed and security a CBDC . 20 Industr y bodies like SWIF T are
as it:

Figure 2. Key Regulatory and Industry Initiatives (KRIIs) are evolving to harmonize the payments landscape

2021 2022 2023 2024-2025 >2026

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MiCA – Markets in Cryptoassets
IXB – Immediate Cross-Border Payments Elapsed time
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FIDA – Financial Data Access

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

Note: Elapsed time is shown only for regulations and initiatives where key implementation dates are defined.
10 World Payments Report 2023

collaborating with regulators and financial As part of our World Payments Report 2023,
services firms to seamlessly integrate CBDC we surveyed payments executives who said they
with existing payment infrastructures. In 2022, use one or a combination of four approaches for
SWIFT and Capgemini demonstrated interlinking ISO20022 migration: outsourcing to an IT vendor,
of disparate CBDCs with traditional payment buying off-the-shelf solutions, building solutions
infrastructure to achieve successful cross- internally, or collaborating with FinTechs.
border transactions. This pilot paves the way for Responses indicated that:
the interlinking of multiple CBDC systems via a • More than half of the surveyed payments
shared platform.21 executives indicated outsourcing as their
prefer red appro ac h, followed by 43%
ISO20022 migration indicating they were buying off-the-shelf
Banks and payment firms are also switching to solutions
a data-rich messaging standard, ISO20022, that • Nearly one in three payment executives said
allows financial firms to pass down more granular they are attempting to build an ISO20022
data; this new standard requires tokenization as solution internally
a security layer. In the World Payments Report • Despite the strong push, only 44% of payment
2022, we analyzed the adoption and benefits executives said they were in the final phase or
of ISO20022 migration: the SWIFT ISO20022 had completed the ISO20022 migration
messaging standards aim to replace legacy • A quarter of payment executives said ISO20022
message type/text (MT) and harmonize the migration is in process, while 27% said they are
payment infrastructure across jurisdictions. yet to start the ISO20022 migration journey.

The European Commission (EC) is setting global

payments trends
The EC is working to orchestrate an efficient • EC adopted the digital finance (DigFin)
and integrated European payments market that package and retail payments strategy
aims for harmonious rules across jurisdictions, a with four main priorities in 2020: remove
common instant payment infrastructure, strong digital fragmentation in the EU single
consumer protection controls, and a wide choice market, facilitate digital innovation,
of payment instruments.22 promote data - driven finance, and
address digital transformation
• As the EU’s executive arm, the EC began challenges. The package further boosted
payments transformation in 2007 with the first the adoption of open finance and the
Payment Services Directive (PSD1) to set region’s platform economy.
common rules in the European Economic Area
(EEA) covering all non-cash payments. PSD1 laid • Also in 2020, 16 major Eurozone banks
the foundation for the single euro payments launched the European Payment s
area (SEPA). Initiative (EPI) to create a unified
p a y m e n t s o l u t i o n f o r Eu r o p e a n
• EC launched SEPA in 2008 and fully implemented consumers and merchants.
it in 2014 to harmonize payment standards across
all member countries and eliminate distinctions • In 2021, the EC initiated instant payments
between domestic and cross-border payments. consultation and amended SEPA to
boost the adoption of instant payments
• PSD2 went into force in 2018 – triggering in the region.
Europe’s open banking revolution and inspiring
several countries worldwide to launch similar • In June 2023, the EC proposed further
application programming interface (API) P SD2 improvement s and s et t he
frameworks. groundwork for PSD3, along with
proposed revisions to EU payment
• The strong customer authentication (SCA) services legislation, and a proposal on an
requirement of PSD2 came into force in 2019 to open finance framework, called FIDA.
make digital payments safer and more secure
for customers.
 World Payments Report 2023 11

SWIFT global payments initiative (instant payments, e-money, digital wallets,

Another critical SWIFT program, gpi (global account-to-account, and QR code payments)
payments initiative), was launched in 2017; SWIFT relative to traditional methods (checks, direct
followed with gpi for corporates (SWIFT G4C) debits, cards, and credit transfers). Per the
two years later. Both initiatives aim to improve World Payments Report, in 2022, conventional
the transparency and traceability of payments payment methods accounted for more than
across the correspondent banking network. Only 83% of overall non-cash transaction volume,
38% of the payment executives we surveyed said while new payment methods comprised nearly
their firm’s adoption of SWIFT gpi was complete. 17%. According to World Payments Report 2023
Nearly 29% said adoption is in process, while research findings, we believe that by 2027 new
almost 24% are yet to begin. Swift’s Shirish payment methods will make up around 28%
Wadivkar (MD and Global Head of Wholesale of total volume, while the share of traditional
Payment s and Trade Strategy) said, “A s a payments will drop to nearly 72% of overall non-
messaging network, SWIFT is agnostic to value cash transaction volumes.
representation. We focus on global interoperable New payment instruments are challenging
value transmission that is safe, secure, and instant long-dominant schemes, especially cards. Despite
across participants. We are enabling banks to their convenience, speed, and security, cards
leverage SWIFT capabilities (data, technology, are expensive. High penetration in developed
and consulting) to deliver advanced solutions in economies left little choice for merchants
payments and cash management.” but to bear the brunt of card providers’ high
intermediary fees. During pandemic lockdowns,
Instant payment methods and cards emerged as a customer-preferred payment
method. However, as transaction value increased,
rails are changing the industry retailers incurred significantly high costs for
Expanding digital payment infrastructure, accepting card payments; for example, UK
regulations, and open banking are swiftly retailers incurred more than GBP 1 billion (USD
changing how customers and businesses pay. 1.3 billion) in fees to accept card payments in
A comparative analysis confirms the growing 2020.23
prominence of new payment instrument s
12 World Payments Report 2023

India’s digital payment revolution driven by

Unified Payment Interface
When the Reser ve Bank of India (RBI) in 2022 as UPI A2A payments became the
established the National Payments Corporation preferred payment instrument for consumers
of India (NPCI) in 2008, it laid the foundation and businesses.28
for the country’s digital payment revolution.24
The launch of digital ID Aadhar followed in UPI supports push and pull payments and
2009, and real-time payments rails, IMPS, in event- based and time - based payment
2010.25 In 2016, NPCI introduced the Unified triggers (for recurring or subscription-based
Payment Interface (UPI), an interoperable outflows). India’s central bank plans a new UPI
payments system that powers direct and instant feature – single block, multiple debits (SBMD)
settlement across multiple bank accounts for – which will enable consumers to block their
C2C and C2B transactions. Finally, in 2021, India account funds and complete payments after
unveiled the account aggregator framework service delivery. The feature will likely boost
for consent-based encrypted data sharing for UPI use for e-commerce and replace cash on
consumers and businesses. Multiple open APIs delivery. It may also help consumers to invest
followed.26 in various securities in the future.

Powered by a real-time network and open RBI’s Vision 2025 document emphasizes UPI
banking, UPI reported exponential growth globalization for efficient and affordable
of 1.9 times in volume and nearly 1.8 times cross-border payments. India is in talks with
in transaction value from 2021 to 2022.27 UPI 30 countries regarding UPI adoption, and
transaction value and volume overtook credit France, the UAE, and Singapore signed a
and debit card totals by a significant margin memorandum of understanding in 2022.

Account-to-account (A2A) payments have a • Only 25% of payment executives selected

competitive edge over cards as they move money cards as their top preference for consumer-to-
between accounts without an intermediary. business payments.
Open banking and expanding real-time payment A2A is gaining traction compared to card
networks turn A2A payments into a formidable payments because of simple and convenient
card rival. A2A leverages traditional payment customer experience. However, cards still have
rails (like ACH or SCT) or instant payment rails room for improvement. Several initiatives such as
(such as RTP and SCT instant) to make exchanges. Apple Pay and Click2Pay are already reinforcing
While A2A payments are popular for consumer- card use for payments. Visa and Mastercard
to-consumer (C2C) transactions, we expect are boosting contactless payments, including
similar traction in consumer-to-business (C2B) transactions made by tapping a contactless
use. A USD 100 purchase on a credit card can card or payment-enabled mobiles and wearable
cost a merchant up to 3% (or three US dollars). devices. Contactless payments are also helping
In contrast, an A2A purchase of the same value card operators, including Discover, Mastercard,
will cost less than 1% (or nearly USD 0.60). At and Visa, develop new mass-market use cases.
scale, retailers and merchants, especially small- One example is leveraging contactless open-
to-mid-size enterprises, can achieve significant loop payments to cover mass-transit fares. The
cost savings. practice allows card operators to digitalize low-
Of World Payments Report 2023 Executive value transactions while encouraging contactless
Survey respondents: payments. Visa enables contactless payments in
• 45% ranked A2A payment s as the most cities worldwide and, by 2022, has supported
preferred C2C payments instrument more than 550 urban mobility initiatives. From
• Digital wallets followed at 30% January to September 2022, Visa’s network
• For consumer-to-business payments, offline processed over one billion contactless payments
and online, nearly 40% ranked A2A payments worldwide for mass-transit fares.29
as their preferred instrument, followed by
digital wallets (at about 35%)
 World Payments Report 2023 13

Innovation and regulatory • Fund income primarily comprises interest

changes are increasing payment income from credit cards and more recently
BNPL products. Rising consumer debt and lack
provider costs of regulatory clarity around BNPL can dent
The payment industry is undergoing a surge fund income growth.
in global regulations, initiatives, and innovations, Consumer credit card debt is increasing due
resulting in new payment instruments and use to high inflation and its impact on the cost of
cases. However, managing the volume, velocity, living. In the United States, consumers’ total
and variety of these simultaneous changes credit card balance was USD 986 billion in Q1
comes at a cost for banks and payments firms – 2023, according to June 2023 consumer debt
and it is significant. data from the Federal Reserve Bank of New York;
The payments executives we surveyed said that total is unchanged from Q4 2022’s record
managing risk, regulator y compliance, and number, leaving the balance the highest it has
scheme compliance (such as SWIFT ISO20022 ever been since the New York Fed began tracking
migration) comprises 36% of total payment in 1999.30
business costs. Maintaining and modernizing Debt balances of this magnitude trigger
legac y s y stems followed at near ly 27% . fear of payment delinquencies, which may also
Payment processing incurred another 17% of impact payment firms’ fund income. For instance,
expenditures, and 9% went into talent-related in 2022, AMEX and Discover reported year-over-
expenses. Payment firms are left with barely 11% year profit declines of 13% and 21%, respectively,
to invest in innovation (Figure 3). as charge-offs and delinquencies increased. 31
At the same time, revenues are under stress. Card operators may also likely earmark funds for
Survey participants said traditional revenue potential 2023 loan losses.
sources for a payment business include 37% fund In contrast, income from value -added
revenues, 13% float income, and 29% fee income, services contributes 21% of total income, which
but these metrics are changing: cannot offset fee and fund revenue losses.
• Instant payments are reducing float-income
and this trend will likely continue
• Fee income that includes interchange fees is
under pressure, too: regulators in the United
States, the UK , and Europe aim to cap
interchange fees to reduce payment costs for
consumers and merchants

Figure 3. High costs and stressed revenues leave little room for innovation

Payment
innovation IT
projects maintenance Value-added
11% and services
Talent modernization
9% 21%
27%
Fund
Revenues income
Rise in 37%
Float under
Payment costs income pressure
processing
13%
17%

Risk and
compliance Fee-based
management income
36% 29%

Sources: Capgemini Research Institute for Financial Services Analysis, 2023; World Payments Report 2023 Payment
Executive Survey (N=115).
Question asked to payment executives: What is the current payment revenue structure? What is the payment industry
cost structure?
14 World Payments Report 2023

Changing market dynamics operations in 23 European countries.33 And Fifth

trigger payment business Third Bancorp acquired Big Data Healthcare, a
healthcare payments and remittance FinTech, to
restructuring improve its value chain capabilities in the medical
Banks and payment firms across the globe payments sector. 34 Earnings pressure has also
are examining the implications of ongoing led to acquisitions in payment processing. For
disruptions, cost stress, and evolving revenue example, Canadian investment firm, Brookfield
models; the actual impact on each banking and A sset Management, acquired UA E- based
payment firm depends on its market position payment processor Network International in
and payment value chain capabilities. As a result, 2023. Brookfield also acquired the payment
providers are grappling with strategic decisions, business of First Abu Dhabi Bank PJSC in 2022.35
including whether to: Banks are also forging strategic partnerships
• Own versus outsource a payments network with payment specialists to consolidate payment
• Forge alliances to boost payments volume volumes. For instance, in April 2023, Credit
• Build, buy, or collaborate with third parties to Agricole, a France-based international banking
manage technology infrastructure. group, partnered with payment processing firm
Accordingly, we are witnessing a surge in Worldline to set up a joint venture to provide
strategic restructuring initiatives. Often driven payment services to businesses. 36 Banks and
by margin pressure and rising competition from payment firms collaborate with third parties
FinTechs, some banks and payment firms divest to offer new services or manage technology
their payment function (partially or completely) and payment infrastructure. In Q2 2023,
to payment specialists. In November 2022, Intesa British bank Standard Chartered partnered
Sanpaolo, a leading European banking group, with WorldPay to expand market coverage and
sold its stake in its retail payments partner Nexi.32 launch a new Straight2Bank Pay feature for
However, not all banks and payment firms are digital collections.37 And some banks are building
considering divesting. Some are strengthening internal capabilities and platforms. HSBC rolled
their capabilities or striving to improve market out a banking-as-a-service (BaaS) platform in
share with acquisitions. In late 2022, JPMorgan 2021 to offer enterprise clients embedded
acquired cloud-based FinTech Viva Wallet, with payment services.38
 World Payments Report 2023 15

Rebalance retail and commercial and retail payments account for 54% and 46% of
payment focus to capture
56%
total value, respectively. In Europe, commercial
and retail payments account for 62% and 38%
expanding value pools of the share, respectively. And in the APAC
of total global
The 2023 World Payments Report Executive region, the split between commercial and retail payments value
Survey results indicate that retail payments payments value share is nearly 50% each. is attributable
comprise 59% of total transaction volume while Globally, more than one in two payment to commercial
commercial payments comprise 41%. However, executives agreed that commercial payments payments,
in terms of value, commercial payments make up offer better prof it potent ial t han ret ail outpacing the
nearly 56%, while retail accounts for only 44% of payments. In Europe, this perspective is even retail payments
total payments value (Figure 4). total
more pronounced as nearly 56% of executives
Shares of value and volume change from believe commercial payments have more high-
region to region. In the Americas, commercial profit potential than retail.

Figure 4. Payment executives say commercial payments offer higher profit potential
than retail

Client pyramid Payment volume Payment value

(# of transactions) ($)
Enterprise payments

High margins

High value,
923 Billion* low volume
Corporates
41% 56%

SMBs
Retail payments

Low margins

59% 44%
Retail customers
Low value,
1,329 Billion* high volume
Sources: Capgemini Research Institute for Financial Services Analysis, 2023; World Payments Report 2023 Payment
Executive Survey (N=115); GlobalData Payments Market Analytics 2023.
Question asked to payment executives: How payment share is split between retail and commercial payments in your
region by value and volume?
*The number of transactions include both cash and non-cash transactions for 64 countries for the year 2022.
 16 World Payments Report 2023

Commercial payments are catching such as digital and efficient experiences. More
up quickly with digital payments than 60% of payment executives agreed that
the demand for a better payment experience
trends, so it’s time to act accelerates commercial payment digitalization.
Global non-cash commercial payments will Marc Andrews, Vice President, Financial Services
grow at compound annual growth of nearly and Insurance Industry Market Leader from Pega,
11.3% (2022–2027), primarily driven by Asia said, “Commercial banking has been slower to
Pacific. From a regional perspective, Europe leads implement digital automation and engagement
the non-cash transaction volume share, followed capabilities in general. However, things are
by North America. APAC comes in third in value beginning to change as their clients seek real-
share yet is fast-trending to a 14.6% CAGR during time transparency into payment status and faster
the forecast period (Figure 5). response to requests, especially when there is a
Nearly three-quarters (74%) of surveyed

74%
processing problem or need to make a change,
payments executives ranked the entry and which can significantly impact corporate cash
building scale of new-age players (FinTechs management.”
of payments
and PayTechs) as drivers for growth in non-cash Regarding payment methods, around 60%
executives said
new-age players commercial payments in the forecast period. of the corporate executives we surveyed as
are helping Most new-age players seek to improve their unit part of the World Payments Report 2023 ranked
drive non-cash economics profitably, and commercial payments commercial cards as the leading instrument.
commercial offer a stable source of revenue with a smaller Suppliers become stressed during periods of high
payments volume pool of competitors and long-term engagement inflation if payments are delayed significantly
growth scope. As a result, challengers are launching from the invoice date. High inflation makes
commercial payment products and services to money less worthwhile over time. As a result,
target SMEs, if not large global corporations. traditional payment instruments, such as paper
As one example, the UK’s cloud-native Starling checks, become less effective for all value-
Bank launched a business ecosystem to target chain stakeholders, making commercial cards a
and nurture SME client relationships. preferred choice.
Enter pr is e client s demand ret ail - like
payment s from banks and payment firms,

Figure 5. Global commercial non-cash transactions to set for robust growth

Growth CAGR
Volume in billions 250.3 ’22F–’23F ’22F–’27F
4.5
Global 10.4% 11.3%
36.3

MEA 11.5% 12.5%

179.6
162.1 3.1
70.3
2.8 24.4 Latin 12.5% 13.6%
146.8 America
133.7 2.5 21.6
2.3 19.2
56.2 North
101.4 17.3 7.0% 7.5%
52.5 America
1.5 49.0
12.4 80.9
45.8
37.5 Europe 11.0% 11.7%
57.6
51.6
46.5
42.3
32.3 58.3 APAC 13.75% 14.6%
29.5 33.6 38.3
17.7 26.1

2017 2021 2022F 2023F 2024F 2027F

Source: Capgemini Research Institute for Financial Services Analysis, 2023
Note: Commercial non-cash transactions: Transactions between businesses (not individuals) using a mode of payment
other than cash. Figures are forecast for 2022 and beyond.
 World Payments Report 2023 17

Rising interest and acceptance of commercial said they still use paper checks as a payment
cards are also fueling innovation. Card operators instrument.
seek to deliver integrated value-added services Commercial payments are fast catching
such as highly configurable spend- control up with the overall digital payments trend
features, expense management, reporting, – borrowing innovation from retail to meet
and budgeting tools for efficient and real-time evolving corporate client demands. And a
visibility into enterprise spend. In 2023, AMEX particularly important aspect of commercial
and Microsoft collaborated to build AI-powered payments is cash management services. Cash
intelligent expense management and reporting management revenue for banks suffered during
features for businesses.39 the global pandemic in 2020; however, in 2022,
In addition to cards, nearly 45% of corporate it is now back on a growth trajectory because
executives ranked digital wallets among the of growing corporate deposits and high net
top three preferred payment instruments. interest margins. The accelerating shift away
Another one-third of corporate executives from paper-based processes, rising adoption of
ranked A2A payments as the preferred payment digital transactions, and FinTech collaborations
method. With instant payments and real-time are all contributing to fast evolution within the
payment infrastructure maturing across critical commercial payments segment, offering new
markets, A2A payments and digital wallets are and expanding cash management value pools for
heading toward a watershed moment. However, banks and payment firms. However, maximizing
traditional payment methods are still relevant. value from cash management services require
For example, 57% of corporate executives said banks and payment firms to engage and meet
credit transfers and direct debits on conventional the changing expectations of enterprise clients.
rails (ACH, SC T, etc.) are suitable payment
methods. Moreover, 37% of corporate executives

Tokenization boosts virtual card acceptance for

small-to-mid-size businesses and corporations
Enterprises use tokenized cards to increase trillion by 2026, up from USD 1.9 trillion in
securit y and embed cards directly into 2021 – indicating the strong demand among
digital wallets. In combination with virtual enterprise clients for virtual cards.40 Banks,
cards, tokenization offers enterprises more card operators, payment processing firms,
spending control and security. They can set and new-age players are collaborating to
unique codes in tokenized virtual cards to track offer tokenized virtual card solutions to
spending and improve reconciliations. Control corporates. In 2022, California’s Marqeta, a
parameters can restrict card use via the cloud-based open application programming
date, dollar amount, or supplier credentials. interface platform, integrated with the
Tokenized virtual cards offer seamless Mastercard Track Instant Pay virtual card
integration with corporate enterprise solution to leverage machine learning
resource planning systems to improve (ML) and high straight-through-processing
decision-making and payment tracking. (STP) rates for instant payment of supplier
invoices.41 In another instance, HSBC
T h e w o r ld w i d e v a lu e o f v i r t u a l c a rd partnered with Extend in 2022 to offer virtual
transactions is poised to reach USD 6.8 card capabilities to enterprise clients.42
18 World Payments Report 2023

Enterprise cash management is a

challenge to be met
Enterprise client s and their corporate Cash remains trapped as
treasurers are soldiering through ongoing corporations navigate economic
macroeconomic and geopolitical upheaval. The
odds of recovery in 2023 are uncertain worldwide,
headwinds
according to the US credit rating agency S&P For over a decade, capital has been easy to
Global Ratings. The number of firms operating come by for large enterprises. However, since
at a negative cash flow is on track to rise from March 2022, as central banks began to increase
2021’s 8% to 11–16% by the end of 2023.43 Cash interest rates, the cost of debt reached up to
flow in the United States is not keeping pace with 13%.45 It has also become challenging for large
profit expansion, according to Bloomberg: simply enterprises to re-finance their debts. In parallel,
put, cash inflows matched only 88 cents for every high debts and rising rates are increasing interest
dollar of profits, the largest discrepancy since at expenses, which means less cash for corporates
least 1990.44 to invest in strategic initiatives. As a result,
More than half of corporate treasurers across corporate treasuries must focus on working
multiple industries told us that rising globalization capital management. Freeing up operational cash
of trade and ongoing supply chain disruptions is cheaper than seeking external credit!
drive demand for effective and efficient cash Companies aim to improve collection
management services (CMS). Another third said management to shorten days sales outstanding
evolving risks (geopolitics and cybersecurity) (DSO), which measures the average time it takes
made CMS critical, while nearly 30% called out to collect customer payment. However, a lack
rising inflation for their growing need for better of automation, fragmented payment collection
cash management. Reliable around-the-clock channels, inefficient dunning (communicating
CMS is key for operational efficiency, they added. with customers to ensure accounts receivable
Enterprise clients realize they must elevate their collection), and often missing invoices spark
cash management capabilities to build resilience disorganized collection management.
and navigate volatility.
 World Payments Report 2023 19

On the other hand, corporations cannot pay and order-to-cash cycles. Over 70% of the
extend days payable out st anding, which treasurers we surveyed said they face issues in
measures the average time it takes to pay credit risk assessments, collection processes, and
suppliers. The inventory cost is also affected reconciliation.
because businesses must maintain higher • 73% of treasurers said payments are often
inventory buffers. Put these circumstances stuck and delayed due to false positives and
together and the result is a higher cash conversion manual operations handling

79%
cycle. In 3Q 2022, the cash conversion cycle of • 69% responded that they do not receive
S&P500 companies deteriorated to 61.6 days, up adequate payment options from their banks
from 55.4 days in 2021.46 Not surprisingly, 79% of and payment firms.
of corporate
the corporate treasurers we polled agreed that As a result, the enterprise has to rely on treasurers
poor cash management capabilities contribute to paper checks and traditional non-cash payment agreed poor cash
more lengthy cash conversion cycles (Figure 6). instruments – ACH, SCT, wire transfers, and the management
Delays in the cash conversion cycle also like. More than one in two treasurers complained contributes to
lead to stuck working capital. According to the about missing invoices. lengthy cash
J.P. Morgan Working Capital Index, nearly USD Consider a multinational enterprise with a conversion cycles
523 billion was stuck in the balance sheets of diverse global supplier base and sales offices
S&P 1500 firms in 2021 (compared with USD in worldwide markets. In such an extensive
507 billion in 2020).47 Organizations could have corporate value chain, receiving cash from
used this cash to fund strategic initiatives. Of customers and paying suppliers is demanding
the corporate treasurers we surveyed, 78% and, at times, punishing. Money flowing through
complained about inefficient working capital multiple jurisdictions with heterogeneous
management, and more than 70% said subpar compliance and messaging standards makes
cash management support results in higher cross-border payments prone to failure and
operating costs, delayed cash pooling, and delays. Moreover, incomplete data fields
ultimately high debt levels. covering information like payment purpose,
type, and source can lead to false positives and
Enterprise clients need more compliance issues. These payments must pass
through a network of correspondent banks,
visibility into their cash meaning treasurers cannot trace the money flow
On average, an enterprise has more than 27 and are often unaware of whether a payment is
banking relationships to meet its treasury needs. stuck or settled. Late payments exacerbate the
Despite multiple connections, enterprise clients problem and open corporate treasuries to FX
face payment challenges across procure-to- volatility.

Figure 6. Enterprises with ineffective cash management services are vulnerable to

business upsets

79% 78% 78% 76%

72%

53%

Lengthy cash Inefficient High Delayed cash High level Cash

conversion working capital operating sweeping and of debts forecasting
cycles management costs pooling inaccuracies
Sources: Capgemini Research Institute for Financial Services Analysis, 2023; World Payments Report 2023 Corporate
Executive Survey (N=355).
Question asked to corporate treasury executives: What business impact does your firm face because of poor cash
and liquidity management?
20 World Payments Report 2023

Consider the impact when millions of dollars en When exploring advanced capabilities,
route from Asia to Europe become stuck for a week nearly 70% of payment executives said they
– and FX rates change during that time: the company run multiple pilots to build and roll out their
risks losing value on the generated invoice. For a customized API library. About one in two
treasurer, poor payment capabilities translate into said their firm is piloting various artificial
a lack of cash visibility and forecasting inaccuracies. intelligence (AI) and automation-powered
In our survey of corporate treasurers, 62% did use cases around cash management services.
not find cash management services offered to H owever, w it h p o or dat a c ap abil it ie s
them by banking partners satisfactory. So, where and delayed cloud migration, high AI and
are banks and payments firms lagging? automation efficacy is often out of reach,
making firm - wide scalabilit y of AI and
A fragmented digital landscape automation use cases a concern. The Global
Head of Institutional Payments at AWS,
hinders effective cash management Nilesh Dusane, added, “Financial institutions
delivery to corporates store large volumes of data but need a lot of
Existing legacy systems remain as financial resources to derive insights from the data.
institutions’ biggest barrier to offering superior Cloud-based data lakes and technology
cash management services. infrastructure allow financial institutions to
• 64% of payment executives said a lack of data avoid spending on inefficient AI/ML projects
management and processing capabilities, and instead leverage costs-effective cloud AI/
incompatible and non-interoperable systems, ML services to more easily get the most value
and heterogenous messaging standards across from their data.”
entities create a digital disconnect Outdated systems and slow/disconnected
• 55% complained that their IT systems could not transformation initiatives result in
scale, which meant slow transformation of underdeveloped cash management capabilities,
existing processes. hurting banks’ market competency. Many
We asked payment executives about the improvements in the cash management
progress of their digital initiatives to transform capabilities of banks and other large payments
cash management ser vices. Not surprisingly, providers are needed to meet the needs and
respondents rated cloud migration as an ongoing expectations of corporate clients. Pain points
initiative. across the cash management value chain have
• 45% of payment executives said they had resulted in many challenges for providers to
completed 30–50% of the migration, while 44% address (Figure 7).
indicated less than 30% progress
• Progress was comparable on building internal
APIs to eliminate functional silos – with 50% of
payment executives rating progress as medium Many banks still use 10-year-
to high and nearly a third indicating less than 40% old technology, and upgrade
progress
only when absolutely essential.
• On average, more t han 4 0% of payment
They don’t see the necessity for
executives said their firm was far from completing
a complete IT estate overhaul.
half of these initiatives.
Cloud-native applications are key to accelerating
However, a shift to cloud is
the digital transformation journey. Yet, more than a inevitable, especially with AI
third of organizations said they had made less than technology gaining attention and
30% progress in building cloud-native applications. adoption. Banks that lag in cloud
Almost one in two payment executives said their firm’s transformation will find it difficult to
progress in rationalizing its IT footprint was less than compete.”
30%. Only one in three payment executives rated IT
footprint rationalization at 30–50%. Many banks and
payment firms still follow the lift-and-shift model for
cloud migration relying on redundant integration Sailesh Panchal
interfaces. This stop-gap remedy slows legacy Director, Digital Transformation Advisory Ltd.,
system decoupling or decommissioning. Siloed TSB Bank
digital transformation and a fragmented approach
result in banks and payment firms failing to achieve
cloud advantages (costs, agility, and scalability) and
struggling to embrace advanced technologies like
AI and intelligent automation.
 World Payments Report 2023 21

Figure 7. Disjointed digital transformation leads to cash management challenges

Product Channel
5
Clearing & Servicing &
Management Onboarding & Origination Product Processing
Settlement Reporting
Billing

2 4 8
Market Payment Messaging Format Interbank Billing &
coverage Connectivity Authentication processing Enquiries
conversion settlement invoicing
1 3

Correspondent KYC checks Sanctions Physical Tax Regulatory

Omni-channel Netting
set-up handling pooling management reporting
6 7
Entity Dynamic Notional Interest Cash Cash
Validation
management pricing pooling calculation reconciliation forecasting
Virtual
FX Fraud account
solutions management management

Sources: Capgemini Research Institute for Financial Services Analysis, 2023; World Payments Report 2023 Payment
Executive Survey.

1. Shrinking payments coverage connectivity to overcome manual tasks. However,

For transaction bank s, global reach is
critical for building and sustaining enterprise
H2H requires banks and payment firms to build a
customized connection interface. A corporation
working with 27 banks may end up building and
70%
of corporate
relationships. Large transaction bank s
and payment f irms rely on a net work of managing 27 H2H customized connections – a treasurers
reported current
correspondent banks to facilitate cross-border strain on already stressed IT resources. Banks and
bank cash
payment s. However, high operational and payment firms struggle to embrace and shift to management
compliance costs and declining profits have multi-bank connectivity channels (like SWIFT and services are
forced many banks to close or let go of their EBICS) or API-based connectivity. underwhelming
correspondent relationships. Instead, it makes
strategic sense for banks and payment firms 3. Slow enterprise client onboarding
to connect with domestic payment schemes Bank and payment firms, on average, can
across multiple jurisdictions. Additionally, they take more than three months to onboard an
can join or participate in industry initiatives enterprise client. Onboarding is consumed by
such as Swift’s IXB (cross-border) pilot based on inefficient, redundant, manual KYC processes
existing real-time payment systems and Project followed by account opening. Banks and payment
m- Bridge, a blockchain-based multi- CBDC firms often manually feed client data through
platform to interconnect various central bank disconnected internal systems, duplicating
digital currencies across multiple jurisdictions efforts and creating inefficiencies that result in
(China, Thailand, and the UAE). delays. Surveyed payment executives (51%) said
However, interoperable payment schemes onboarding and KYC are mostly manual, paper-
and participation in industry initiatives require based, and inefficient.
banks to boost API and digital maturity – a difficult
task. Payment executives (72%) said they struggle
with cross-border capabilities and delivering CMS
beyond their regional (or local) jurisdiction.
Bank-to-corporate connectivity is a key challenge.
2. Lackluster bank-to-enterprise digital Legacy and complex systems impede the delivery and
connectivity analysis of information between banks and enterprises, and
A full 70% of payment executives said the use of custom-built and disparate file formats mean
poorly digitalized bank-to-corporate enterprise treasurers need to spend more time and effort managing
resource planning (ERP)/treasury management the flow of data rather than using the data to generate
systems (TMS) connectivity makes CMS delivery insights and drive business growth.”
challenging. Banks and payment firms still use
banking portals to manually download/upload to
and from corporate ERP/TMS. Issues are significant
Paul Van Sint Fiet
for multinational enterprises working with
Head of Cross-currency solutions APAC, JPMorgan Chase & Co
scores of banks across geographies. Over time,
banks have also embraced H2H (host-to-host)
22 World Payments Report 2023

4. Delayed payment authentication

More than half (65%) of payment executives
told us it takes undue authentication time
Businesses can streamline B2B
because their firm lacks structured processes and
operations by seamlessly integrating
has poor inter-functional data sharing.
workflows and value chains combined
5. Underdeveloped integration
with a real-time payment solution. Real-
capabilities
time payments provide businesses with
a range of advantages like improved
Almost 67% said they still don’t deliver instant
cash flow management and faster
payment capabilities, multi-banking integrations,
payment cycles that can positively impact
and connectivity. And they struggle to provide
value-added services such as virtual account
their financial performance, customer
management (VAM).
satisfaction, operational efficiency, and
Intuitively, banks and payment firms must market competitiveness"
shift from current batch processing cycles to
year-round, always-on, continuous transaction
processing. In parallel, the goal should be to Rachel Whelan
manage reconciliations and handle exceptions MD, APAC Head of Corporate Cash Management
inst ant ly w h en t h ey ar is e. T h e H ea d o f & Global Head of Payments &
Transaction Banking at Nordea, Kirsi Wiitala, TFX Product Management, Deutsche Bank
agreed, saying, “Corporate customers want
transaction environments that are both real-
time and secure. As we approach high-interest Reconciliation also negatively affects the
rates and diverse geopolitical scenarios, real- cash-netting process. Missing invoices and
time payments become increasingly critical for mismatched transaction details deter banks and
corporates to manage cash flow.” payment firms from implementing cash netting.
However, such a future state requires The ISO20022 messaging standard can enable
overhauling and realigning existing systems. Some richer, end-to-end, structured, and meaningful
banks and payment firms may attempt to graft real- data, allowing for improved automation and
time payment engines on top of their existing batch- high reconciliation rates. However, poor bank-
processing system. But integration complexities to-corporate connectivity results in banks often
may impede sustaining improvements over a long being unable to pass down the advantages of
period, making it difficult to handle rising volumes. ISO20022 to corporates. Nearly 70% of corporate
On multi-banking integration, each bank has treasurers surveyed said they experienced very
created a unique set of APIs using their proprietary little to modest improvements due to SWIFT
authentication standards and custom messaging initiatives (ISO20022 and gpi).
formats for their enterprise clients. However, the
lack of corporate API standardization may hinder
multi-bank integrations.
Similarly, integration and incorporation
with a bank’s current operating model remain
challenging for value-added services such as
virtual account management that interact with
multiple bank areas and functions and require
several touchpoints (integrations) across the
legacy systems. VAM success depends on the bank
and payment firm’s cash management capabilities.
Hence, at times, it simply becomes a reporting and
reconciliation tool.

6. Manual cash reconciliation

Half of the payment executives we polled
s aid reconciliat ion remains manual . T he
volume of data analyzed through spreadsheets
takes significant time and effort and is error-
prone. Missing data fields, delayed payment
communication, and regulatory compliance
during reconciliation yield low match rates (high
mismatches).
 World Payments Report 2023 23

7. Inaccurate cash forecasting

More than 60% of payment executives said

60%
offering clients cash forecasting and a single view
of their cash daily and around the clock remains
challenging. Issues for banks and payment firms of payment
include fragmented and inconsistent data, delays executives said
in consolidating information, and diminishing providing clients a
relevance of historical data in predicting daily 24/7 view of
future cash flow. Historical data is becoming their cash remains
inconsequential with the growing number of challenging
black swan events (such as the pandemic, ongoing
geopolitical crises, and natural catastrophes).

The emergence of e-invoicing is

an important opportunity to streamline
payments and collections – and the
entire financial sector has a key role to relationships. Such partnerships cannot end
play. without business implications. However, poor
cash management services and related issues
left unaddressed can lead to “silent attrition.”
Wim Grosemans Over time, corporations forced to endure
Global Head of Product Management, weak cash management capabilities begin to
Payments & Receivables - Cash Management, defect by narrowing their scope of services,
BNP Paribas transferring a share of accounts to a competitor
bank, cutting transaction volumes, and reducing
business volume: the result is revenue leakage
8. Heterogeneous invoicing standards and business loss. During market uncertainties,
Without a defined standard, e-invoicing silent attrition gains momentum as enterprises
processes are fragmented and transferred over cautiously consolidate their relationships with
email with PDF attachments, retrieved from banks that can provide efficient and effective
supplier portals, or exchanged through electronic cash management services. Banking firms often
data interchange. This lack of uniformity and miss the signals as discontented clients shift to
standardization fosters integration complexity competitors.
and low interoperability between systems. Not One-size-fits-all offerings are a primary
surprisingly, 63% of payments executives rely reason firms lose ground in transaction banking
on paper-based and manual invoicing processes. relationships. Each corporation has unique
needs depending on its industry, geography, end
users, and suppliers. But even recognizing and
Cash management challenges
understanding these large differences between
adversely impact corporate bank clients, banks and payment firms struggle to
relationships customize because of the inherent complexity
Basic cash management services are a source of their own operating and IT models.
for deposits and routine activities such as wire National Australia Bank’s Shane Conway,
transfers, cross-border payments, collections Senior Executive, Transaction Banking, Enterprise
and payables, and check processing for banks and Payments and Asset Servicing, Corporate &
payment firms. However, it also opens doors to Institutional Banking, said, “Demand for solutions
various offerings – from loans and FX services to that help businesses efficiently optimize their
sophisticated merger and acquisition support, working capital is growing. Real-time cash visibility,
investment banking, liquidity management, automated banking processes, AI engines, and
and other customized bank services. Therefore, seamless API-first connection with banks enables
although obstacles exist, cash management can corporates to run scenario analysis quickly and
be at the heart of banker and enterprise client intelligently, based on economic conditions,
relationships: it can be an engine to drive broader disruptions, and client segment activity, to
banking growth. improve cash forecasting, risk management, and
Complex processes and needs, and deep strategy development.” Leading banks will invest
interdependencies, bind corporate and bank in building these capabilities.
 24 World Payments Report 2023

FinTechs are up and coming as cash management

competitors – and partners
The competitive landscape is changing, annually by optimizing the invoice regulator y guidance and advice
with new entrants in the corporate cycle and providing a 360-degree where banks step up as the trusted
cash management arena. Indeed, 44% view of supplier relationships.49 partner. Finally, for many corporates,
of the corporate treasurers surveyed • Another FinTech, TransferMate, is cash management services are a
for this report told us that they are helping corporates to streamline gateway to access more sophisticated
exploring collaboration opportunities accounts receivable with automated financial products, including factoring
with new-age players to access better collection and processing. and refinancing, M&As, and investment
cash management capabilities. More • New-age players like Stripe are also advisory services.
than one in two corporate treasurers offering broader cash management
said FinTechs offer ease of integration services by leveraging banking as a For bank-corporate relationships,
and use of payment solutions. FinTechs service. Stripe launched Stripe FinTechs pose less of a challenge as
offering solutions like instant payments, Tre a s u r y i n 2020 t o e n a b le competitors and can be an enabler –
reconciliation, account payable/ corporates to embed financial as collaboration partners. From the
receivable automation, digital invoicing, services in their businesses. The US, Stripe’s Revenue and Finance
and cash forecasting are aiming to FinTech is also expanding its banking Automation Marketing Lead Katie
address key cash management pain network to include Goldman Sachs Ochieano said, “FinTechs such as
points for corporates. Bank USA, Evolve Bank & Trust (US), Stripe complement banks when it
• For example, a global consumer Citibank, and Barclays to enable comes to cash management. Banks
goods company collaborated with standardized access of financial have extensive experience in asset
FinTech Treasur y Intelligence products using its APIs.50 and liability management, and in
Solutions (TIS) to improve cash managing relationships with clients
forec ast ing c ap abilit ies . T I S While FinTechs do offer digital-first as well as with regulators. They
helped the corporate to improve and seamless cash management provide corporations with hedging,
forecasting accuracy from 50% to capabilities, they are bound by FX, risk management, capital, and
80% wit h var iance for some limited geographical reach and lack extended liquidit y lines. Stripe
categories below 10%.48 ability to orchestrate wider bank enables banks to deliver efficient
• Similarly, Coupa (a FinTech with partner networks that some large cash management to enterprises
spend management specialization) bank s already have. Moreover, with services including payments,
helped a leading telecom player to cash management services across invoicing, money movement, and
manage USD 5 billion of spend jurisdictions also require significant fraud detection.”
 World Payments Report 2023 25

Forge strategic corporate relationships

underpinned by efficient cash management
Existing legacy systems and their inherent commitment, cohesive planning, and a unified
complexities obstruct banks and payment firms purpose for structural reforms.
from unlocking sustainable value. IT research firm To overcome legacy obstacles, banks must
IDC predicts the cost of running and maintaining pursue an end-to-end digital transformation
legacy payment systems will climb from USD journey: a three-layered approach to simplify,
36.7 billion in 2022 to more than USD 57 billion perform, and engage (Figure 8).
in 2028 – a 7.8% annual growth rate. IDC also says
banks and payment firms operating within legacy
constraints may be unable to compete for new
payments-related income and risk missing 42% As a broader bank strategy, HSBC has invested in
in incremental revenue while losing up to 21%
Global Payments Solutions to elevate transaction banking
annually in cost savings if they do not migrate to
capabilities to address the needs of corporate clients today
future-ready platforms.51
In cash management, several departments
and tomorrow with a five-year committed investment plan.
own different parts of the value chain. For We focus not only on payment transactions but the entire
instance, Know Your Customer (K YC) and corporate payment journey to provide digital-first, and
onboarding may be part of shared services, efficient experience. With a strong and modular digital
account opening in banking, or payment s foundation and innovative platform capabilities, HSBC is at
processing within payments BU. Distributed the heart of transaction banking relationships for corporates
ownership can lead to a fragmented digital of all sizes.”
environment, as each business unit may have
a transformation plan, budget, and timelines.
Hence, end-to - end digital transformation Stewart Halliday
in transaction banking requires top - down Global CIO, Global Payments Solutions, HSBC

Figure 8. A layered approach to nurturing strategic relationship with corporate clients

Enterprise clients

Payment Corporate Single-view

Robo-treasury
factory/IHBs marketplace CMS portal Engage
as strategic
partners
Web portal Mobile Host-to-host SWIFT GPI/G4C API

Banking-as-a-service platform
Perform
Enterprise liquidity management with
platforms
Virtual account management
Core cash management capabilities
Commercial Instant Demand
ACH/SEPA payments Wallets
cards deposits
Payments
Simplify
Cash and liquidity

hub
Reconciliation
Orchestration
Omni-channel

Trade finance

back stack
management
Clearing and
Onboarding

Assessment

Pricing & FX

settlement

Reporting
Analytics

to enable
Lending

Billing

innovation

Data
warehouse
FRONT OFFICE MID OFFICE BACK OFFICE

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

26 World Payments Report 2023

SIMPLIFY the back stack to technology and data stack as the SaaS service
enable innovation and agility provider delivers system upgrades over the cloud.
At First Abu Dhabi Bank, Gautam Dutta, MD
For the past few years, banks and payment and Head of Global Cash Product Management &
firms have expanded operations, acquired new Innovation, said, “Embedding cloud-based as-a-
firms and capabilities, and built new systems. service pre-packaged functionalities into the bank’s
This growth has led to multiple localized back-end architecture helps to reduce strain on
product portfolios, applications, and databases. resources, drives cost efficiency, boosts deployment
However, it prevents banks and payment firms speed, enriches capabilities and features, improves
from leveraging a unified view of the cash personalization, and enables standardization of
management value chain. Managing the full processes like onboarding and KYC.”
spectrum of products and offerings becomes Industry cloud marketplaces are further
challenging, and the result is often inefficient accelerating the digital transformation journey
pricing strategies and risk management, as well of banks and payment firms with the ease of
as strained relationships with corporate clients. deployment of SaaS-based solutions. A cloud
Mick Fennell , Busines s L ine Director, marketplace act s as an online storefront
Payments at Temenos, agrees when he says, hosted by cloud service providers like AWS,
“Transaction banks have built layers of multiple Google, and Microsoft offering third-party
systems, resulting in large legacy footprints, software, applications, data and ser vices.
high operational cost s, and slow time to Banks and payment firms can re-design their
market. Simplifying this requires a flexible, API- digital landscape by leveraging the cloud
first platform that supports the composable marketplace and reduce time-to -value for
banking approach to plug-and-play various digital transformation initiatives, streamline IT
cash management capabilities in the cloud. procurement and decision-making processes,
Banks must leverage an open and secure cloud- and automate deployment of solutions.
native platform for composing, extending, and Leveraging cloud-native solutions to simplify
deploying capabilities at scale.” the IT landscape allows banks and payment firms
Banks and payment firms must orchestrate to reduce operational costs and overheads,
implementation of cloud-based point solutions enhance efficiency, and improve regulatory
for efficiency and agility. Fast-paced disruption controls and security. Nigel Dobson, Banking
has forced banks to prepare for multiple future Services Lead at ANZ, said, “Based on risk and
outcomes. As a result, a composable digital stack cost considerations, banks often undervalue
that is “build-to-evolve” enables banks to embrace the benefits of decommissioning legacy systems.
change on the go. Composability allows banks and However, banks must prioritize and gradually
payment firms to select and assemble capabilities move to cloud. ANZ has already migrated 40%
to satisfy business requirements. Banks and of its target applications to cloud and we’re in
payment firms can integrate SaaS-based turnkey the process of migrating our domestic real-time
solutions into their existing systems quickly and payments infrastructure to cloud.”
economically. This also helps to future-proof the
 World Payments Report 2023 27

PERFORM with platforms added, “BaaS and API-first banking will emerge
to boost cash management as universal channels similar to online and mobile
channels. Hence, banks must build and maintain
efficiency BaaS capabilities now.”
A robust, capital- light (low upfront Goldman Sachs’ BaaS platform, TxB, made its
i nve s t m en t ), a g i le, a n d s c a l a b le d i g i t a l debut in 2020, offering embedded transaction
foundation allows banks and payment firms to banking ser vices to enterprise clients. 52 In
build specialized solutions and platforms. With 2021, Deutsche Bank launched its In-House
regard to cash management, three solutions Banking- as- a-Service (IHBaaS) platform for
create market differentiation. mid-size and large enterprise clients. 53 Along
similar lines, HSBC developed its BaaS platform
Banking-as-a-service (BaaS) capabilities in partnership with Oracle. The bank has
unlock new revenue streams embedded international payments and expense
In its simplest form, the BaaS platform management functionalities in Oracle NetSuite’s
allows firms to expose their cash management banking platform to enable enterprise clients to
functionalities using APIs and embed them into automate accounts payable, receivables, and
corporate business environments. BaaS enables reconciliation processes.54
firms to collaborate and partner with enterprise An explosion of business banking APIs also
clients and FinTechs to co-create customized encourages embedded cash management
cash-management solutions. services. Big and small banks now have API
First Abu Dhabi Bank’s Anand Sampath, MD catalogs (or libraries) that allow enterprise
and Head of Global Payments, Collections, and clients to directly integrate cash management
Client Implementation, said, “We have started functionalities into their enterprise resource
offering Transaction-Banking-as-a-Service to planning (ERP)/treasury management systems
monetize its regulated infrastructure. The bank (TMS).
provides white label transaction banking services
and treasury advisory to enterprise clients.” He

Treasury-as-a-service solution mitigates

merger and acquisition obstacles
Business challenge to four months, including certified resources
Corporate clients often face challenges and a control framework. The complete
when creating new legal entities or spinning packaged solution allows treasurers of
off a part of their business. The process new entities to manage cash flows and pay
can be painful for treasuries with limited employees' salaries and suppliers’ invoices, as
resources and little time to set up a new- well as execute all basic treasury operations
business treasury unit. When detached or (spot, forward, term deposits, money market
acquired, an entity does not necessarily have funds, etc.). It covers all elements of a new
all required functions – particularly treasury. treasury organization, from technology to
Corporations can replicate the parent people, from onboarding/offboarding to
company treasury structure or install a new connectivity and integration.
platform and recruit new treasury expertise
Business results
in the market. However, both options are
costly and consume time and energy, which BNP Paribas report s that EasyTreasur y
can delay closing the deal. has been well-received since its June 2023
launch. And although envisioned initially to
Business solution ease the life of large corporations on the
BNP Paribas partnered with its strategic selling side (mother companies), it has also
global corporate clients, from pharma to large progressively been perceived as a buy-side
industrial groups, to co-create and develop match, with industrial buyers and private
an all-in-one solution called EasyTreasury, a equit y companies valuing it for newly
plug-and-play treasury-as-a-service solution acquired companies, given the aggressive
that helps new legal entities set up and time to market and pricing structure.
operationalize a treasury unit within three
 28 World Payments Report 2023

At Singaporean multinational bank DBS , • Aggregating bank balance and transaction

RAPID (real-time APIs by DBS) leverages nearly data from multiple banks
180 business banking APIs to embed cash • Payment initiation through multiple payment
management services directly in enterprise rails.
clients’ business flow.55 Similar to DBS, several While some bank s offer APIs that can be
other banks like Bank of America, Citibank, JP directly used by corporate treasurers, we are
Morgan Chase, Nordea, Standard Chartered, witnessing third-party API solution vendors
and Wells Fargo offer corporate and commercial helping corporates and banks reduce IT costs,
APIs. Annelinda Koldewe, Global Head of time, and effort in setting up API connectivity.
Payments Wholesale banking at ING, told us, “As For instance, Deutsche Bank, which already had
business models evolve, corporates seek flexible several corporate APIs, partnered with FinTech
financial services embedded within customer FinLync to leverage pre-built API integrations for
journeys via seamless API-based solutions. For improved bank-to-corporate connectivity.56

70%
instance, Amazon has embedded ING’s lending Nearly 70% of the corporate treasurers
proposition. Other retailers consume ING’s sur veyed for the World Payment s Report
payment request APIs. Embedded finance is 2023 said open banking capabilities around FX
of corporate
treasurers said bringing new payment offerings to corporate solutions, request to pay, accounts payable/
open banking clients wanting to embed banking expertise receivable automation, data analytics, cash
capabilities are within their customer experiences. We now see forecasting, and digital billing/invoicing are
important big potential for embedded transaction banking important to them. Leveraging APIs to aggregate
services with treasurers becoming aware of the data and integrate with TMS/ERP systems helps
possibility to digitalize interactions along their banks to offer these open banking capabilities
corporate supply chain.” to corporate treasurers seamlessly. Anith
These APIs also form the connectivity layer Daniel, Group Head of Transaction Banking
to improve the flow of information between Services at Emirates NBD Bank, said, “APIs have
banks and corporates. APIs allow for multi-bank improved reconciliation by simplifying instant
connectivity, data aggregation, and integration information flow between banks and corporates.
of bank back-office with corporate ERP/TMS. Today APIs are helping in FX services, account
APIs also improve SWIFT connectivity for banks validation, connecting to SWIFT gpi, and building
as well as corporates. Two primary use cases of subscription service."
API connectivity include:

BaaS sparks bank/FinTech teamwork to enhance

cash management value
According to the World Payments Report complement each other’s transaction
2023 Payment Executive Survey, 71% of banking offerings. For instance, businesses
respondents said they prioritize collaboration using the Stripe Treasury banking-as-a-
with FinTechs to create and offer innovative service API can now open TxB-powered
cash management services. More than 70% wallets without directly interacting with the
said FinTech partnerships provide access to TxB platform.57
new technology, improve speed to market, and
optimize IT expenses. Nearly one in two payment • Goldman Sachs also partnered with San
executives also said cooperation helps expand Francisco-based FinTech Modern Treasury to
client reach and new service development. expedite client onboarding time.58

When asked to name essential collaboration • Similarly, DBS collaborated with Singapore
areas, two in three payment executives listed FinTech Finlync to improve API integration
open banking services such as request-to-pay with enterprise clients.59
and multi-account aggregation along with
other cash management services, including • FinTechs, including HighRaidus, TIS (Treasury
automated reconciliations, digital invoicing, Intelligence S olutions), K r yiba, and
cash forecasting, and AP/AR automation. TransferMate, are collaborating with banks
including Citibank, J.P. Morgan, Barclays, and
• Goldman Sachs shared its TxB platform with Société Générale to fuel cash management
Irish/American FinTech Stripe to combine and capabilities.
 World Payments Report 2023 29

Virtual account management (VAM)

offers smarter, leaner, and more efficient
cash management
VAM is not new as banks have offered it for
nearly 20 years. Fundamentally, virtual accounts
organize and report data in a real, physical bank
account. However, the inherent flexibility of
defining virtual account hierarchies that reflect
various business operations can help banks
support multiple liquidity and cash management
propositions from a single VAM platform.
Of the corporate treasurers surveyed in
the World Payments Report 2023, 63% ranked
automated reconciliation and reporting as the
top benefit from VAM platforms, followed by
improved tracking and transaction management
(53%), simplified cash management structure (47%),
and lower banking fees and rationalized banking
relations (46%).
Yet, despite several VAM benefits, platform
installation is a challenge for enterprises.
• 60% of corporate treasurers said they struggle to
optimize virtual account structure to meet
organizational requirements,
• 58% noted issues in managing tax implications,
• 50% said understanding and navigating VAM
regulations across multiple jurisdictions is
challenging, and
• Nearly one-third cited difficulty with integrating For example, in 2018, Citibank launched an
a VAM platform with their ERP/TMS system. in-house proprietary VAM platform across 16
However, VAM platforms have evolved to Western European markets and 37 currencies.60
solve technical and operational challenges. By 2022, the bank expanded the offering
Next-generation VAM platforms are a virtual to US corporate clients and 41 currencies.
overlay implemented on top of a bank’s core Citibank plans to expand its offering to Asia
platform with minimal impact to the existing and Canada. Citibank’s VAM platform can
infrastructure. API architecture ensures a streamline the documentation process and
seamless interface and integration with reduce IT requirements for enterprise clients,
corporate ERP/TMS systems, with self-service significantly simplifying the account opening
capabilities and extended account hierarchies process. Citibank can now open accounts and
(the ability to open unlimited accounts). make them transactional within 24 hours.
Moreover, next-generation VAM platforms Previously it could take months! With multiple
leverage emerging instant payment rail s payment methods, VAM helps the bank provide
and open banking to offer real-time liquidity instant payment capabilities for domestic and
management ser vices. VAM platforms are cross-border transactions. Corporate clients
no longer limited to account rationalization leveraging Citibank’s VAM platform can access
and reporting purposes. Now they enable instant cash management capabilities like real-
sophisticated cash - management ser vices time cash concentration, account segregation,
such as managing multi- currency liquidity, automated account receivables/payables, and
intercompany funding, interest, and margins, as instant reconciliations. In 2022, Citibank reported
well as centralizing and automating “on-behalf- an 82% increase in virtual account balance
of” structures. growth thanks to 33% VAM platform adoption.61
 30 World Payments Report 2023

Blockchain and tokenization initiatives can boost the cash

management value chain

Virtual accounts can be grafted on conditional fund transfers and intra- cash forecasting capability. Treasury
top of blockchains (or permissioned day lending decisions – and interest- systems can use smart contracts and
DLT networks) to enable value and payment disbursement. Automation programmable deposit tokens to
information transfer. This capability significantly reduces human capture data from invoices, payment
can also help to overcome the intervention and the scope of manual transactions, bank accounts, and
complexities of integrating blockchain errors, resulting in highly efficient inventories. As a result, employees
in an enterprise client environment. liquidity management. are free from numerous manual
data-entry tasks, and the enterprise
Commercial banks are working on Gautam Dutta, MD and Head of
eliminates data loss, duplication, and
deposit tokens (equivalent to existing Global Cash Product Management
manipulation. In parallel, blockchain
deposits held by banks) to support & Innovation at First Abu Dhabi Bank
can ensure that data recorded in
a variety of use cases, including (FAB) said, “We believe that the co-
ledgers is authentic, immutable, and
domestic and cross-border payments, existence of fiat and tokenized systems
traceable. Moreover, automation
trading/settlement, and cash collateral will raise the level of interoperability
enables corporate treasuries to
provision. How does it work? Consider a among stakeholders, and this will
establish a consistent, reliable single
scenario in which Company A has bank be key to driving customer value.
source of truth for all data across
deposits. The bank can tokenize these At FAB, we are currently evaluating
different systems, stakeholders, and
deposits and store them in Company A’s tokenization through deposit tokens
subsidiaries.
virtual wallet or account. Transactions and soon we will explore tokenized
occur on a private blockchain network asset s and central bank digital J.P. Morgan’s blockchain unit, Onyx, is
across the virtual account hierarchy. currency (CBDC) to determine how piloting various use cases deploying
This enterprise setup can simplify programmability can be built in for cash blockchain and deposit tokens,
cash sweeping and pooling exercises management use cases such as trigger- including creating customizable virtual
by eliminating intermediaries and based funding, defunding, interest account structures, multi-currency
automating reconciliations. Company A payouts, etc. Looking ahead, our notional pools, programmable money,
can also use deposit tokens in its wallet initiative(s) can be extended for pilot and cross-currency liquidity. In March
to pay Company B by transferring them participation in single/shared ledgers 2023, the Swiss Bankers Association
over the blockchain network. The before we look at universal or unified (SBA) released a whitepaper exploring
banks of companies A and B can settle ledgers to create building blocks for deposit tokens as an alternative to
on a separate interbank network. new clearing and settlement systems.” private stablecoins.62 Similarly, DZ
Bank in Germany partnered with four
Moreover, the programmable nature In addition, underlying blockchain
corporate clients to issue deposit
of deposit tokens opens doors to technology can bolster data collection
tokens directly into a private blockchain
novel use cases leveraging smart and validation processes, giving
network.63
contracts to trigger payments or corporate treasurers more precise
 World Payments Report 2023 31

An enterprise liquidity management

(ELM) platform facilitates diagnostic
decision-support intelligence Liquidity management offers a single view and
An ELM enables actionability and operational control over cash positioning. It requires harmonization
interconnectivity between internal and external across multiple TMS and ERP systems across the enterprise
systems. Transaction banking API catalogs and – a challenging proposition. Thanks to APIs, banks can
VAM platforms with intercompany tracking seamlessly integrate multiple systems and eliminate silos
capabilit y laid the foundation for an ELM to help treasurers improve liquidity management.”
platform. ELM platforms bring together siloed
resources and functionalities and offer corporate
treasurers complete visibility on ownership of
Jan Rottiers
cash, working capital management, payment
Head of Liquidity Management Solutions for Corporates, BNP Paribas
security, and liquidity risks (Figure 9). ELM is
gaining traction as complexities in managing
enterprise liquidity rise and the corporate
treasurer role expands. Corporations expect ENGAGE with corporate clients
strategic liquidity management advice from as strategic partners, not service
treasurers. Sometimes, ELM platforms are
compared with TMS; however, we consider TMS
providers
as a subset of the broader ELM platform. Co r p o r a t e t rea s u r y t ea m s a re o f t en
The operations layer of the ELM platform groups understaffed, and disruptions such as COVID-19,
application modules to run treasury (including TMS), high inflation, supply chain disruptions, and
payments, risk management, and working capital geopolitical crises significantly strain resources
optimization. Next, the API-rich connectivity layer and efficiency. Considering the evolving role of
helps unify data from multiple ERPs and standalone corporate treasurers, as true strategic partners,
systems within the enterprise setup and externally banks must offer transformational support.
(suppliers, customers, banks, etc.). Finally, the There are three key areas where banks can lead
execution layer leverages artificial intelligence, change and add value for corporate clients.
machine learning, and data visualization to analyze
data collected from disparate systems and support
decision-making.64

Figure 9. An ELM platform converts operational data into actionable insights for quick
decision making

PROCURE-TO-PAY ORDER-TO-CASH
INSTANT PAYMENTS Netting INSTANT PAYMENTS

Risk
Automated management Customer
E-contract Credit
invoice data
management scoring
matching Cash forecasting analytics

Supplier Centralized
Bulk Rebates & Digital Dispute
Reporting data treasury
payments (In-house bank) discounts invoicing management
analytics

Suppliers Working capital

Payment efficiency Payment
compliance Reporting
approvals collection
check
Inter-company
swapping

Virtual account
AUTOMATED ACCOUNTS PAYABLE management AUTOMATED ACCOUNTS RECEIVABLE

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

 32 World Payments Report 2023

Robo-treasury In-house banks and payment factories

53%
of corporate
In today’s volatile environment, corporate
treasurers require on - demand, always- on
treasury support. Corporate treasurers need as
In-house banks and payment/collection
factories are on corporate treasurers’ radars. Of
those surveyed for the World Payments Report
treasurers much time as possible for strategic initiatives 2023, 53% said they are exploring options to
are exploring instead of spending effort on repetitive and low- centralize treasury operations at the regional
centralizing value-adding tasks. Therefore, intelligent robotic level. And one in three corporate treasurers said
treasury process automation (iRPA) can be critical. For their firm had begun its centralization journey.
management at
corporate treasurers, automation is important Demand for high efficiency and transparency in
the regional level
in payment execution and monitoring as well as managing cash and liquidity has made in-house
accounting. RPA eliminates tedious and manual banks (IHBs) top of mind for corporate treasurers.
daily processes, enabling corporate treasurers
to spend more time on value-added tasks. Banks
that embrace iRPA in payment areas can deliver
quantifiable value.

Leading corporates aim to centralize treasury operations to leverage

real-time payments and a full suite of API connectivity to enable 24/7, 360-degree
visibility of their cash. Banks and payments firms are instrumental and play a
major role in enabling corporate treasurers' transformation journey.”

Nicolas Cailly,
MD, Global Head of Payments & Cash Management, Société Générale CIB

Bank boosts high-traffic payments efficiency

with automation
Business challenge operations personnel for more rapid review
A global bank was experiencing difficulties and automate processing to reduce the
managing various t ypes of payment level of manual work and review required,
exceptions, typically requiring significant sometimes even resolving issues without
manual processes and multiple human any human intervention. The bank has even
touches to resolve. The bank’s operations incorporated AI to gradually learn from
team working on these exceptions had grown common issues and increase the level of
to 1,000 people as their payment volumes straight-through processing (STP) over time.
grew and they struggled to meet their service
Business results
level agreements (SLAs).
The bank can now automatically resolve
Business solution about 80% of exceptions with no human
The bank leveraged US-based Pega’s low intervention, and the average number of
code platform for AI-powered decisioning human touches per exception was reduced
and workflow automation to manage all by 70%, leading to a 29% improvement in
of their commercial payment exceptions. same-day resolution. In addition, while the
Real-time, bi-directional integration with number of payments processed have doubled
SWIFT and other systems automates the over the past several years, along with the
capture and interpretation of information to number of exceptions, the bank is now able
determine the exception reason. Intelligent to resolve these exceptions with only 300
automation with advanced business rules operations people…an effective reduction
are then used to route cases to appropriate of 85% in the number of people required.
 World Payments Report 2023 33

What do in-house banks include? • 67% of payment s executives said firms

• Payment factory to control outgoing payments, strategically partnering with corporate clients
manage POBO (pay - on - behalf- of ), and face a reduced threat of disintermediation
automate reconciliation from new-age players (FinTechs) and industry
• Collection factory to automate and manage peers
account receivables, COBO (collecting-on- • 65% of executives said strategic banking
behalf-of ), reconciliation, and accounting partners could embed multiple value-added
processes ser vices within their corporate client s’
• Intelligent netting for inter-company payments business flow and can expect higher margins
and settlements
from deep engagement
• Intercompany financing for seamless loan
• 57% of payment executives said strategic
disbur sement and automated interest
banking partners could increase cross- and up-
calculations
• International risk management with FX and selling opportunities with their corporate
internal interest rate hedging clients because of their relationships.
• Liquidit y management with automated
postings and centralized trading
Banks and payment firms with a robust digital
foundation and platform capabilities are integral
to corporate treasurers setting up an in-house
bank. Next-generation VAM and enterprise
liquidity management platforms are essential
to building in-house banks and accelerating
benefits for corporate treasurers.
Corporate or B2B marketplaces
Finally, several large corporations and B2B
firms are orchestrating marketplaces and
ecosystems. As more sales shift to e-commerce
channels, they become a point of convergence
for data and payment volume. Large transaction
banks seek a central role in helping corporations
manage these emerging B2B marketplaces.
Trans a ct ion b ank s w it h a st rong digit al
foundation can work more closely with enterprise
clients to set up corporate marketplace portals
or support their payment ecosystems.

In June 2023, Standard Chartered launched

B2B marketplace support for corporate clients.
The bank is piloting B2B marketplace projects in
multiple regions spanning various industries like
travel, contract manufacturing, and commercial
vehicles.65 Similarly, Société Générale partnered
with FinTech Lemonway to offer payment
services for large European corporates entering
the B2B marketplace arena.66

Step-up with clients to build long-term

sustainable value
Large, diversified corporations with
multinational presence work with several
banks. Therefore, for one bank to emerge as a
global strategic partner is challenging because
of regulatory and geographical barriers.
However, there is a sizeable opportunity for
banks to step up as strategic partners at the
domestic or regional level. We asked banks and
payments executives how their firms could
benefit through corporate client partnerships.
 34 World Payments Report 2023

Strategic partner banks are well-positioned to help drive

green treasury initiatives

Green and sustainable cash • Banks are introducing green deposit There are multiple ESG standards in
management is a top agenda item accounts. Deutsche Bank launched the market, and they vary regionally;
for corporate treasurers who have short-term green deposit accounts a large global enterprise may report
prioritized environmental, social, for corporate clients in 2021. 67 ESG data from several geographies
and corporate governance (ESG) Similarly, in 2022, Citibank launched under different criteria. Most banks
strategies; these executives are keen to new deposit solutions to help clients link sustainable loans to a client’s
integrate ESG metrics across their cash invest excess cash in sustainable complet ion of E S G goal s , and
management processes. Included in the time deposit s or sustainable disparities in ESG data reporting make
World Payments Report 2023 corporate minimum maturity time deposits it challenging for banks to assess ESG
survey results: based on the bank’s sustainability status accurately. The result is poor
framework.68 More recently, in compliance. What’s more, 54% of
• 45% of treasurers said they want to
Februar y 2023, Japan’s MUFG payment executives said they do not
assess their suppliers’ ESG scores
launched Green Deposits, allowing get high-quality ESG data, and 51% said
• 50% said they are willing to offer
corporations to invest excess cash in their firm lacks an ESG framework.
better credit terms to suppliers with
an interest-bearing product that
high ESG scores Despite several green cash management
funds green projects.69
• Nearly one in three corporate products, supply is limited: a few leading
treasurers also evaluated the ESG • In addition to deposits, some transaction banks are at the forefront of
metrics of investment opportunities transaction banks offer factoring sustainable cash management services.
their banks presented. (collateralizing account receivables Other banks are hamstrung by data
to raise immediate cash). For limitations: indeed, 64% of payment
Transaction banks are key to driving
instance, in 2022, Société Générale executives said they lack the necessary
sust ainable c ash management
embedded ESG considerations in its standardized ESG data. For banks and
initiatives. Most corporations turn to
factoring strategy for SMEs and mid- payment firms aiming to launch ESG-
their strategic banking partners for
sized businesses in France.70 linked cash management products,
advice and tools to implement green
capturing, analyzing, and interpreting
cash management processes. 67%
• Additionally, sustainability-linked high-quality and harmonized ESG data
of payment executives said they are
loans (SLLs) help enterprises to is imperative. Banks and payment firms
either providing or planning to provide
green their cash. According to a need ESG data hubs to capture granular
advisory and education to corporate
Bloomberg report, the market for data across multiple parameters from
clients on green cash management
ESG debt could reach USD 15 trillion transaction data, invoices, investments,
practices. Regarding green cash
by 2025. BNP Paribas is a leading SLL and other sources.
management products, options are
orchestrator.71
proliferating:
 World Payments Report 2023 35

IN CONCLUSION
Reenergizing and expanding relationships
between banks/payment firms and enterprise clients
will be no small feat. Today’s economic uncertainty
has upended numerous global corporate operations,
leading treasurers and other executives to seek
active engagement with financial services partners
– including business advice and technology-driven
efficiency solutions. Yet, enterprise clients say their
incumbent financial service providers’ support is
often underwhelming. Commercial payments are
fast catching up with the digitalization trend, offering
new value pools for banks to tap into. So, banks must
establish strategic partnerships and client trust to
leverage the trend. This will require banks to:

Maneuver through the dynamic payments landscape

and align priorities with key industry initiatives,
compliance schemes, and regulations to retain
competitive positioning in the market. Banks and
payment firms must balance their focus between
retail and commercial payments to explore and
capture expanding value pools.

Transform cash management ser vices with

a digital foundation and intelligent platform
capabilities. The Simplif y, Perform, Engage
model outlined in this report offers guidance
into enabling innovation, streamlining core
capabilities, and engaging with clients in new ways.

Break the mold and forge strategic relationships

with corporate clients to drive deeper engagement.
Banks and payment firms that behave solely as service
providers sell themselves short. Those that overcome
legacy obstacles to become valued strategic partners
will achieve sustainable value in the years ahead.
 36 World Payments Report 2023

Methodology
Scope and research sources
payments, distributed ledger technology, and
The World Payments Report 2023 draws on
more. Participants were also asked about the
insights from two primary sources – the Global
current challenges they face in cash management
Large Businesses Survey 2023 and the Global
and their expectations from partner banks on
Banking and Payments Executive Surveys and
value-added services in cash management.
Interviews 2023. These primary research sources
The survey respondents represented key
cover insights from 17 markets: Australia,
industries: Retail/e-commerce, life sciences
Brazil, Canada, China, France, Germany, Hong
(including pharma and medical device OEMs),
Kong, India, Italy, the Kingdom of Saudi Arabia,
quick ser vice restaurant s, manufacturing
the Netherlands, Singapore, Spain, Sweden,
(including automotive), and energy & utilities.
Switzerland, the UAE, the UK, and the US.

2023 Global Large Business 2022 Global Banking and

Survey Payment Executives Survey and
Interviews
The survey questioned 355 senior executives
of corporate treasury departments of large The report includes insights from focused
cor porates on factor s dr iving payment s interviews and surveys of over 130 senior executives
disruption, expectations from banks, satisfaction of leading banks, financial service organizations,
levels, factors driving relationships with their payment service providers, industry associations,
banks, non-banking services currently used, and central banks representing all three regions: the
emerging payment services such as real-time Americas, Europe, and Asia-Pacific & Middle East.

Corporate survey Key markets for surveys Executive surveys

+350 +115

CFO Payment leaders of

Head corporate
treasurers leading banks,
Norway
payment firms
Germany
Sweden
Switzerland
Netherlands
Belgium
Canada UK

France

Key Industry targets

US
Spain

Executive interviews
China
Italy

Retail/e-commerce 105
Hong Kong
Vietnam
(incl. consumer products) Saudi Arabia; Thailand Banks/payment firms and
India
UAE

Life sciences/Pharma/ Brazil

Singapore
corporate clients,
90
Medical devices OEMs* Australia including heads of:
Quick service Commercial payments,
60 Transaction banking,
Restaurant (QSR)
Cash Management
Manufacturing
(Auto, air plane makers)
60 Corporate treasurers
Americas Europe APAC & MEA
Energy & Utilities 40
120 35 120 45 115 35
Note: *OEM – Original equipment manufacturer
 World Payments Report 2023 37

Partner with Capgemini

The time to transform your business is now

Connected Payments • Manage APIs by leveraging prebuilt APIs for open banking
(AISP, PISP, PIISP), API lifecycle management, API monitoring,
Our integrated Connected Payments offering helps banks
API traffic management, and API analytics
take a transformational view of their payments’ capabilities. We
• Be compliant by keeping customer data secure and protecting
offer a path to payments leadership through implementing the
banks from legal and liability issues
efficiencies and flexibility necessary to thrive in the new ultra-
• Accelerate time to market through a modern, scalable, and
competitive landscape.
resilient API platform
Let us help you modernize payments technology to optimize
• Tap into future innovation by engaging with a diverse
data analysis and streamline related business operations.
ecosystem of partners
Addressing the end-to-end application landscape of a
• Experiment before launch by providing an API sandbox.
typical payments estate can maximize results as you reinvest and
refocus on value-added services. We work with you to create a
plan that provides benefits along the transformational journey ISO20022
while tailoring the roadmap within your specific contexts and The payments world is moving to the ISO 20022 standard
needs. Solution components include: based on its proven ability to improve operational efficiency,
• Co-creation of current state assessment and roadmap harmonize data, automate reconciliation, enable robust risk
development and compliance controls, and develop value-added services.
• Deployment of a range of transformational levers such as ISO 20022 transformation affects both business and IT layers.
ecosystem integration, data and analytics implementation, Adopting the standard will impact the entire payments
cloud adoption, platform replacement, bespoke builds, test landscape, from channels and integration layers to payments
and migration factories, and business operations engines. Incumbent firms should avoid remaining in the
• Continuously track and report top- and bottom-line value tactical phase for too long. Adoption in its entirety will involve
• Connected Payments helps financial institutions achieve a complete change of data models and relevant downstream
benefits including (but not limited to) technology future- systems to build compatibility. Capgemini, with its rich
proofing, additional value-added services, and lower experience in handling ISO 20022 transformation journeys,
optimization and productivity improvement costs. follows a 360-degree approach that includes:
• Business, technology, and client impact analysis
Open Banking Platform • Roadmap development, including overall migration, program
scope, and business case.
The Open X framework unlocks a world of new business
models for financial services firms via effective collaboration
with an extensive ecosystem of businesses (from FS to non- Cash Management
FS firms) enabled by open and evolutive platforms. It allows We help organizations with their end-to-end Cash
partners to exchange revenue-generating services by accessing Management transformation, from strategy definition to
each other’s data, unique knowledge, existing customer base, solution implementation.
and specific distribution channels. We have developed a payment orchestration cloud platform
The API economy can become a competitive advantage that enables banks to improve their transaction banking
for financial institutions, allowing them to provide customers proposition, decomplexifying banking relationships, unlocking
with compelling experiences, relying on transaction-based the full potential of real-time cross-border money movement
business models through third-party solutions rather than via and real-time cash forecasting for their corporate clients.
substantial – and usually lengthy – in-house investment. Open It enables corporate treasurers, large retailers, and insurers
API strategies are transforming once tightly closed banking to have a simplified and seamless integration between their
systems into openly connected institutions that empower ERP / Treasury / Payments Factory and their banking partners.
firms to offer capabilities beyond banking by leveraging FinTech Our solution is cloud and ISO20022 native and leverages
partner solutions. microservices-, API- and data-driven architecture. This makes
Capgemini can help banks balance offering traditional the platform highly robust, secured, performant, resilient,
banking products through existing channels and going scalable, and cost-efficient. It is also highly composable and
completely digital. Our assessment frameworks and API- provides a strong degree of personalization.
based value creation models provide an end-to-end solution We have strategic partnerships and pre-vetted integration
that combines all the necessary elements to leverage an open with most of the leading cash & liquidity management, virtual
ecosystem through standardized APIs. The Capgemini API- accounts, and foreign exchange vendors in the market. This
based value creation models help financial institutions: enables a transaction banking business line to focus on their
• Unlock new revenue streams by identifying and prioritizing proposition go-to-market, greatly reduce their time-to-market,
the correct API monetization opportunities and generate quick wins.
38 World Payments Report 2023

Ask the experts

Nilesh Vaidya Jeroen Hölscher

Global Head of Banking and Capital Markets Global Head of Cards and Payments Practice

nilesh.vaidya@capgemini.com jeroen.holscher@capgemini.com

Nilesh has been with Capgemini for 20+ Jeroen is an expert in transformation
years and is an expert in managing digital programs in the cards and payments domain.
journeys for clients in the areas of core He has been with Capgemini for 24 years
banking transformation, payments, and wealth and helps clients to improve their payment
management. He works with clients to help products and their underlying technology.
them launch new banking products and their
underlying technology.

Christophe Vergne Venugopal PSV

Cards & Payments SME (Europe) Cards & Payments SME (APAC)

christophe.vergne@capgemini.com venugopal.psv@capgemini.com
Christophe played a critical role in building Venu leads advisory and client solutions in
Capgemini’s global payments transformation Payments, Cards, and Transaction Banking. He
capability. He has co-authored the World has more than 23 years of hands-on banking
Payments Report for the past decade. and banking IT advisory experience.
 World Payments Report 2023 39

Stanislas de Roys de Ledignan Dr. Stefan Huch

Managing Director of Global Financial Services & Global Head of Payments, Capgemini Invent
Sponsor for Asia Pacific
stefan.huch@capgemini.com
stanislas.deroys@capgemini.com Stefan is a global acting integrator within
Stanislas leads Capgemini Invent activities with Capgemini focusing on E-payment, card
banks and insurers across the globe, and support business, and E-commerce in the field of
industry leaders on topics such as innovation business transformation. He specializes in
strategy and business transformation. He top-line growth and payment implementation
has over 25 years of experience working with programs across all industries.
Financial Services lead players in Asia, North
America and Europe to support the industry to
stay ahead of the game.

Elias Ghanem Chirag Thakral

Global Head of Capgemini Research Institute for Deputy Head of Capgemini Research
Financial Services Institute for Financial Services

elias.ghanem@capgemini.com chirag.thakral@capgemini.com
Elias is responsible for Capgemini’s global Chirag leads the Banking and Capital Markets
portfolio of financial services thought leadership. portfolio of financial services thought
He has more than 20 years of experience in FS, leadership. He has over 15 years of experience
focusing on effective collaboration between as a strategy and thought leadership
banks and the start-up ecosystem. professional with in-depth FS expertise with a
focus on banking and FinTechs.
 40 World Payments Report 2023

Key contacts

Global Germany Nordics (Finland, Norway,

Nilesh Vaidya Andreas Fredrich Sweden)
nilesh.vaidya@capgemini.com andreas.fredrich@capgemini.com
Abhishek Mohan
Jeroen Hölscher Stefan Huch abhishek.a.mohan@capgemini.com
jeroen.holscher@capgemini.com stefan.huch@capgemini.com
Thierry Morin (Norway)
thierry.morin@capgemini.com

India Johan Bergstrom (Finland/Sweden)

Asia (China, Hong Kong, johan.bergstrom@capgemini.com
Singapore) Rajesh Hegde
rajesh.a.hegde@capgemini.com
Sriram Kannan
sriram.kannan@capgemini.com Kamal Mishra Spain
kamal.mishra@capgemini.com
Guillaume Rico Mª Carmen Castellvi
guillaume.x.rico@capgemini.com Sriram Thiagarajan carmen.castellvi@capgemini.com
sriram.thiagarajan@capgemini.com
Enrique Cepeda Lázaro
Ravinder Wadhwa enrique.cepeda-lazaro@capgemini.com
Australia and New Zealand ravinder-anand.wadhwa@capgemini.com

Vasant Gore
vasant.gore@capgemini.com
Italy The United Kingdom and
Susan Beeston Ireland
susan.beeston@capgemini.com Francesco Fantazzini
francesco.fantazzini@capgemini.com Michel Vaja
Saugata Ghosh michel.vaja@capgemini.com
saugata.ghosh@capgemini.com Lorenzo Busca
lorenzo.busca@capgemini.com Stephen Dury
stephen.dury@capgemini.com

Belgium Japan
North America
Robert Van Der Eijk Makiko Takahashi
robert.van.der.eijk@capgemini.com makiko.takahashi@capgemini.com Ravi Vikram
ravi.vikram@capgemini.com
Youssef Sakkali
youssef.sakkali@capgemini.com Mischa Koedderitzsch
mischa.koedderitzsch@capgemini.com
Middle East
Patrick Bucquet
PSV Venugopal
France venugopal.psv@capgemini.com
patrick.bucquet@capgemini.com

Christophe Vergne Vincent Sahagian

christophe.vergne@capgemini.com vincent.sahagian@capgemini.com
Yann Leclerc
yann.leclerc@capgemini.com

Jean-Charles Croiger
jean-charles.croiger@capgemini.com

Sébastien Salvi
sebastien.salvi@capgemini.com
 World Payments Report 2023 41

Acknowledgments
We would like to extend a special thanks to Elias Ghanem, Chirag Thakral, and Vivek
all the banks, FinTech firms, technology service Singh for their overall leadership for this year’s
providers, and individuals who participated in our report. Vaibhav Pandey, Bipin Jose, Raghava
executive interviews and surveys. Bethanabhatla, Donald Francis, Prateek Samtani,
Sravanthi Bijinemalla, and Yasmine Bennani for in-
Firms depth market analysis, research, compilation, and
drafting of the findings. Tamara Berry for editorial
F S F i r m s : A B N A M RO, A NZ, B ank of contributions and content leadership. Dinesh
Ireland, BBVA, BDO, BNP Paribas, BNP Paribas Dhandapani Dhesigan for graphical interpretation
Fortis, Commercial Bank of Dubai, Credit and design.
Mutuel Arkea, Deutsche Bank, DZ Bank AG, Capgemini’s Global Payments network for
Emirates NBD Bank, Eika, First Abu Dhabi providing insights, industry expertise, and overall
Bank, HM Revenue and Customs UK, HSBC, guidance: Alan Gregory, Andreas Fredrich, Anuj
ING Bank, JPMorgan Chase & Co, Landesbank Agarwal, Ashiq Nagda, Christophe Vergne,
Baden-Württemberg, Länsförsäkringar Bank, Enrique Cepeda, Ernst Kokke, Gerold Tjon Sack
National Australia Bank, Nationwide, NatWest, Kie, Guillaume Rico, Jeroen Hölscher, Joost van
Nordea, PagoNxt , Rabobank, S ant ander, Putten, Karishma Panda, Klas Rutberg, Li Cheng,
Security Bank Corporation, Société Générale Marco de Jong, Maria Äng, Marwan Farah, Michel
CIB, Standard Chartered Bank, Swedbank, Vaja, PSV Venugopal, Rajesh Hegde, Richard
SWIFT S.R.L, TSB Bank, UniCredit Bank AG van den Engel, Sriram Kannan, Stefan Huch, and
FinTech firms: Stripe, TransferMate Global Thierry Morin.
Payments, CorticAI, Thunes, Upflow, Yondr Laura Breslaw, Marion Lecorbeiller, David
Corporates: Delaware, Bel Group, Netcetera Merrill, Meghala Nair, Swathi Raghavarapu,
SAS, SimplyTreasury Fahd Pasha, Jyoti Goyal, Anthony Tourville, Vamsi
Technology firms: Amazon Web Services, Pega, Krishna Garre, Brent Mauch, Pranoti Kulkarni, and
Temenos Martine Maître for overall marketing leadership;
Survey partners: INJ Partners and the Creative Services team for graphic
production: Balaswamy Lingeshwar, Pravin
Teams and individuals Kimbahune, and Sushmitha Kunaparaju.
Capgemini Sponsor ship Committee:
Christophe Vergne, Gaurav Sophat, Gopalakrishnan
GK, Jeroen Holscher, Nilesh Vaidya, Philippe
Durante, Sankar Krishnan, Senol Mehmet, Sreepad
Kamath, Stefan Huch, Venugopal PSV.

Lead Analysts

Vivek Kumar Singh Vaibhav Pandey

Program manager for BCM thought leadership Project manager for BCM thought leadership
with 12 years of experience in research, with 8+ years of experience in cross-sector
consulting and business strategy. research and consulting.
42 World Payments Report 2023

About us

Capgemini is a global leader in partnering with companies to transform and manage their
business by harnessing the power of technology. The Group is guided everyday by its purpose
of unleashing human energy through technology for an inclusive and sustainable future. It is a
responsible and diverse organization of over 360,000 team members in more than 50 countries.
With its strong 55-year heritage and deep industry expertise, Capgemini is trusted by its clients
to address the entire breadth of their business needs, from strategy and design to operations,
fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software,
digital engineering and platforms. The Group reported in 2022 global revenues of €22 billion.

Get The Future You Want | www.capgemini.com

Financial Services World Report Series

The Capgemini Research Institute for Financial Services is an in-house think tank focused on
digital innovation and technology issues impacting global banks, wealth management firms, and
insurers. The institute annually publishes its signature Financial Services World Reports, which
draw upon primary research voice-of-the-customer surveys, CXO interviews, and partnerships
with technology companies and academia. These data-driven perspectives explore how financial
institutions can meet emerging business challenges with transformative thinking enabled by
technology and data. Independent analysts named the World Retail Banking Report 2021, published
by the institute, as one of the year’s top 10 publications among consultancy and technology firms.

To find out more or to subscribe to receive reports as they launch, visit www.capgemini.com/worldreports.

Disclaimer

The information contained herein is general in nature and is not intended and should not be construed as
professional advice or opinion provided to the user. Capgemini assumes no liability for errors or omissions, or use
of this material. This document is provided for informational purposes only; it is meant solely to provide helpful
information to the user. This document does not purport to be a complete statement of the approach or steps
necessary to address or solve any particular matter or to accomplish any particular business goal. The user also is
cautioned that this material may not be applicable to, or suitable for, the user’s specific circumstances or needs
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was originally written in English. Translation to languages other than English is provided as a convenience to our
users. Capgemini disclaims any responsibility for translation inaccuracies. The information provided herein is on
an as-is basis. Capgemini disclaims any and all representations and warranties of any kind.
 World Payments Report 2023 43

Endnotes
1 BIS, “Digital payments make gains, but cash remains;” January 31, 2023.
2 Nationwide Building Society, “Note to self: Cash usage rises for first time in 13-years amid cost-of-living crisis;” January 11, 2023.
3 European Commission, “Payments: Commission proposes to accelerate the rollout of instant payments in euro;” October 26, 2022.
4 Insider Intelligence, “The European Payments Initiative’s scaled-back pilot could boost instant payments;” April 26, 2023.
5 Payments Journal, “IXB Nearing Full Commercial Launch;” October 10, 2022.
6 Atlantic Council, “Can FedNow bring the US closer to real-time payments?;” May 19, 2023.
7 Finextra, “Money20/20 US: CFPB to finalise US open banking rule by 2024;” October 25, 2022.
8 FinTech Futures, “Payments Canada further delays launch of real-time payment system;” June 15, 2023.
9 Monetary Authority of Singapore, “Singapore and Thailand Launch World's First Linkage of Real-time Payment Systems;” April 29, 2021
10 Bangkok Post, “PromptPay now linked to DuitNow;” June 19, 2021.
11 SALTEDGE, “Doors wide open for Open Banking in the Middle East;” March 20, 2023.
12 Electronic Payments International, “Saudi Payments unveils instant payment system in tie-up with IBM, Mastercard;” April 22, 2021.
13 Open Banking Expo, “UAE’s central bank to issue CBDC and launch instant payments platform;” February 14, 2023.
14 AfricaNenda SIIPS Report; October 25, 2022.
15 Iupana, “These are the Latin America’s instant payment systems;” February 13, 2023.
16 Bexs, “Nexus, international Pix and cross-border ecommerce in 2023;” April 4, 2023.
17 BIS, “Enabling instant cross-border payments;” March 2023.
18 Central Banking Institute, “BIS to trial Asian instant payments link;” March 24, 2023.
19 Ibid.
20 Atlantic Council, “Central Bank Digital Currency Tracker;” Accessed on July 22, 2023.
21 SWIFT, “CBDCs interoperability: 5 key takeaways from our ground-breaking experiments;” November 24, 2022
22 European Commission Payment Services, Accessed July 2023.
23 BRC, “CARDS NOW ACCOUNT FOR MORE THAN FOUR IN EVERY FIVE POUNDS SPENT;” September 21, 2021.
24 The Economic Times, “After UPI, now credit cards overtake debit card transactions;” June 13, 2023.
25 Inc42, “Record-Breaking Numbers of UPI In 2022 Hint At India’s Maturing Digital Payments Ecosystem;” January 6, 2023.
26 Indiatimes, “From Nepal To UAE-List Of Countries That Have Been Adopting India's UPI For Payments;” November 23, 2022.
27 Inc.42, “Record-Breaking Numbers of UPI In 2022 Hint At India’s Maturing Digital Payments Ecosystem;” January 6, 2021.
28 Business Standard, “Credit card linkage to UPI: Uncertainty over pricing leaves players in dark;” June 11, 2022.
29 Visa, “Ten months, one billion tap-to-pay transactions on public transit;” September 21, 2022.
30 Lending Tree, “How much credit card debt do Americans have?” June 21, 2023.
31 Payments Dive, “Profits slip for Amex, Discover;” April 21, 2023.
32 Reuters, “Intesa sells 584 mln euro Nexi stake at 11% discount;” November 15, 2022.
33 Reuters, “JP Morgan signs deal for stake in fintech Viva Wallet for over $800 million;” December 18, 2022.
34 PYMNTS, “Fifth Third Increases Healthcare Focus With Big Data Purchase;” March 8, 2023.
35 Bloomberg, “Brookfield to Buy Network International for £2.2 Billion;” June 9, 2023.
36 Reuters, “Credit Agricole and Worldline plan French payments business;” April 19, 2023.
37 Standard Chartered, “Standard Chartered partners Worldpay from FIS to accelerate global expansion of Straight2Bank Pay;” May 16, 2023.
38 PYMNTS, “HSBC Will Roll Out BaaS Platform;” October 19, 2021.
39 Skift, “American Express Taps Microsoft AI for New Expenses Tool;” February 9, 2023.
40 PYMNTS, “HSBC Teams With Extend to Offer Virtual Cards;” December 14, 2022.
41 Yahoo Finance, “Marqeta Announces Integration with Mastercard Track Instant Pay Virtual Card Solution;” December 7, 2022.
42 PYMNTS, “HSBC Teams With Extend to Offer Virtual Cards;” December 14, 2022.
43 The Jakarta Post, “Companies with negative cash flow could double in 2023: S&P report;” December 12, 2022.
44 Bloomberg, “Corporate America’s Earnings Quality Is the Worst in Three Decades;” March 1, 2023.
45 CNBC, “Corporate bankruptcies and defaults are surging – here’s why;” June 24, 2023.
46 The Wall Street Journal, “Rising Rates Boost Companies’ Focus on Working Capital Management;” November 3, 2022.
47 JP Morgan, “Working Capital Index Report 2022;” July 2022.
48 TIS, “Cash forecasting and working capital made easy;” January 11, 2023.
49 Coupa, “Telenor leverages Coupa to effectively manage $5 billion in spend;” Accessed on July 12, 2023.
50 Stripe, “Stripe launches Stripe Treasury in major expansion of financial services offering for platform partners;” December 3, 2020.
51 The Paypers, “Global banks to spend USD 57 bln on legacy payments technology in 2028;” June 15, 2023.
52 Goldman Sachs, “How We Built our Digital Transaction Bank—in 2 Years;” Accessed July 14, 2023.
53 Flow, “Doing more with less;” April 26, 2021.
54 FinTech Futures, “HSBC launches new BaaS offering with NetSuite;” October 21, 2021.
55 DBS RAPID, “Highly customisable business banking API solutions;” Accessed July 14, 2023.
56 Finextra, “Deutsche Bank and FinLync enable real-time treasury for corporates;” May 20, 2022.
57 Goldman Sachs, “The embedded finance journey: Innovation that differentiates the customer experience;” Accessed July 15, 2023.
58 FinTech Futures, “Goldman Sachs and Modern Treasury partner for embedded payments initiative;” September 16, 2022.
59 The Asset, “DBS teams up with FinLync on automated treasury functions;” September 21, 2022.
60 Business Wire, “Citi Launches Citi® Virtual Accounts;” September 25, 2018.
61 Citi, “Citi’s Institutional Virtual Accounts Usage Increases Significantly with Global Clients;” November 10, 2022.
62 Swiss Bankers Association, “The Deposit Token;” March 14, 2023.
63 Ledger Insights, “How banks are eyeing deposit tokens for B2B payments;” April 6, 2023.
64 Kyriba, “Enterprise Liquidity Management;” November 2021.
65 The Banker, “Standard Chartered launches B2B marketplace for SMEs;” June 30, 2023.
66 FinTech Futures, “Societe Generale taps Lemonway for B2B marketplace payment services;” April 11, 2023.
67 Deutsche Bank, “Deutsche Bank launches green deposits for its corporate clients;” March 31, 2021.
68 Citi, “Citi Launches New Deposit Solutions to Support Clients' Sustainability Agenda;” May 25, 2022.
69 WSJ, “New Green Deposit Programs Let Companies Bank on ESG;” July 17, 2023.
70 ESG Today, “Societe Generale Rolls Out Sustainable Receivables Financing Solution to SMEs;” November 29, 2022.
71 Bloomberg, “'Sleeping' ESG Loans Are a Worrying Trend, BNP Says;” August 25, 2022.
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