INDUSTRY OVERVIEW The Global Payments industry is changing at a fast pace with financial technology innovation, shifts in consumer expectation, and new regulation all contributing to its evolution. The industry revenue continues to grow at a significant pace and expected to cross US$ 2 trillion in 2019. However, there is a discernible pressure in per transaction revenue as new and innovative business models pose competitive threats to the incumbents.

While “the global number of digital transactions has grown from 326 billion in 2012 to 504 billion in 2017,” legacy payment processing platforms struggle to address the complexity of a Digital first strategy. Fintech firms and alternate payment service providers are carving out niche target market with their customer-centric business model.

Fintech and Bank collaboration enables APIs and open banking initiatives, delivering finally an unified mobile payments experience for the consumer.  Blockgration’s primary business market benefits from these digital headwinds and other favorable macrotrends:

Growing Internet usage and Smartphone Penetration

Rapid expansion of access to internet and the growing market penetration of smartphones are contributing to significant growth in mobile shopping and payments - adoption of e-commerce and m- commerce.

Consumers Affinity for Rewards

Consumers demand more rewards and are willing to switch payment service providers to get it. Payment players are leveraging technology for innovative rewards, delivered seamlessly in real time.

Collaboration Powers the Network Effect

Collaboration between banks and fintech firms are becoming industry norm for payment innovation that scales. Collaborative partnership within ecosystems are allowing firms to multiply capabilities and reach without huge capital investment.

Wallet as a Service-Increased Outsourcing by Banks

For many banks, Mobile Wallet development, deployment and ongoing operation has come to be regarded as a “non-core” activity and outsourcing is seen by bank management as a way to increase their focus on their core business. This trend of “Wallet as a Service” has been gathering momentum in 2018.

Blockchain Payment Network

Success of Blockchain Payment Technology firms such as Ripple & Stellar validates the potential of regulatory approved Blockchain Payment Network.

Overall, Zoompass’ business operations benefits from these macroeconomic and socioeconomic trends. Zoompass’ long-term structural competitiveness is based on customized value-added solutions for three global payment market segments:

Sources: World Bank, IBM, Ripple, Stellar Network