According to a new report from Accenture, banks could “lose out on $89 billion revenue in the next three years.” This is if they fail to adopt the newest payment innovations.
The report details the findings of more than 16,000 consumers in 13 countries. This includes Asia, Latin America, Europe, and North America. Although cash is still king in most countries, there are other methods that are gaining popularity. More than half (56%) of consumers said they use digital wallets. And 10% of respondents said they use account-to-account (A2A) payment apps.
Biometric payments are another area of interest among many consumers. With 42% expecting that biometrics will become more common by 2025. What’s more, 9% of respondents said that they would be willing to use biometrics as their primary method of in-person payment by 2025.
If banks fail to embrace these next generations of payments, the report compiled a breakdown of what they stand to lose by region. In North America, $34 billion of payment revenue would be at risk. This is followed by $25 billion in Latin America, and more than $24 billion in Asia-Pacific.
By and large, consumers are shifting the way they make their payments, and they are looking to innovative solution providers to address their most pressing needs. Traditional payment providers would be best advised to implement strategies to offer their customers more choices in payment as well as enhance their current payment experience offering.
We have written on how consumers’ penchant for new technologies have been met by new fintech players here.