This is the 3rd post for providing some infos about crypto based fintechs. Click on my name to read to read other posts.
Payments sector is really huge market and great potential for crypto fintech startups. Non-cash transactions include remittance is significant.
1- Key Points
Global non-cash transactions volume grow %9 to %10 every year. Expected to be 2.4 trillion USD in 2020.
Accelerated in Emerging Asia ( %25.2 ) and CEMEA ( %17.1 )
Mature area markets growth rate is around %4 to %7
Global e-wallet transactions volume was in 42 billion USD in 2016
Top20 Big Techs such as Amazon, E-bay, Alibaba, Google, Apple, etc get %71 of entire e-wallet transactions in 2016.
There is no " one-fits-all " strategy to enter or grow in the e-payments. Needs tailor-made solutions on targeted customers habits, on weak points in country profiles of payments, on culture-effected digital adoption differencies.
Cards and fiat based e-wallets are still dominant in the market but crypto-based ones increased at helluva rate. In BNP Paribas research, crypto based payments & remittance transactions will have %11 market penetration in 2025. Sub-saharan Africa, South East Asia and mid-south America will get lion's share on it.
2 - Key Regulations and Indusry Initiatives ( KRII )
Regulatory sandboxes and initiatives by industry will have major impact in sector between 2019 to 2021. Take a look at below infographic. Also expected some steps from FATF & FinCen.
here is also another chart for in different point of view.
3- Weak Points in Crypto based / DLT payments & remittance. (CapGemini research 2018 )
Lack of interoperability of standarts : %85
Lack of vision due the key positions occupied by IT : %83
Lack of clarity in regulations : %83
Scalability : %77
Security : %66