EU Retail and SME Payments: State of the Industry

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
December 6, 2016
Industry Trends
EMEA

Abstract

Oliver Wyman’s first flagship European Retail and SME Payments report covers 28 markets from the United Kingdom and Ireland to Continental Europe and the Nordic and Baltic countries.

The payments market is undergoing unprecedented changes, and our report covers a number of trends and detailed analysis of revenue pools. The report investigates all major payments instruments and types, including cards, account-to- account (A2A), cheques, and cash, both for retail (person-to-person (P2P) and person-to-business (P2B)), and business (business-to-business (B2B) and business-to-person (B2P)). Remittances, wholesale transfers, transfers among banks, and cross-border payments beyond Europe have been excluded. We have categorised the 28 countries covered across Europe into six payments markets, based on the structure and maturity of the payments infrastructure — for example, United Kingdom and Ireland (UK&I), Central Europe, France and Benelux, Southern Europe, the Nordic states, and other European Union (EU) countries.

Oliver Wyman believes the European payments market revenue pools currently amount to approximately €38 billion, covering a total of €190 trillion worth of transactions across a number of payments methods (including cash and fee income across all channels). Overall, we expect the market to continue to grow until 2020 at a year-over-year rate of around 7 percent, driven by the growth in overall payments volumes (across both mature and less mature markets), as well as the growth of new types of payments, such as A2A. Oliver Wyman forecasts very modest reductions in margins on existing payments types, but does expect the substitution of existing revenue streams by new forms of payments, such as the debit equivalent for A2A.

Celent clients can download the report from the link above, and more information about the report is available on the Oliver Wyman website.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

2

Purpose of This Paper

5

Overview of the Retail and SME Payments Market

6

 

Market structure, key players, and
recent trends

7

 

Payments markets and historical
market sizes

18

Disruptive Trends

30

 

Technology

33

 

Regulation

34

 

Supply side

53

 

Demand side

56

 

Market size and revenue pool forecasts

59

Conclusion

63

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