Start-ups to Grab Banks' $280-b Payments Revenues by 2025

Swipe no more Payments are becoming instant – removing the need for credit cards that earn banks revenue – and they will be made directly to the end merchant using new technology

Banks are set to miss out on as much as $280 billion in revenue from their payments operations by 2025, as new start-ups muscle in and more of the business of sending money to individuals and companies becomes instant and free, according to a new report.

Dominated by banks

The global payments business, which covers anything from card payments to wiring money overseas, is dominated by banks and this year was worth around $1.5 trillion, professional services firm Accenture said in a report published on Monday.

That is expected to grow to $2 trillion globally by 2025, but banks are likely to lose out on $280 billion, or 15 per cent of their global payments revenues, Accenture estimates.