LONDON (Reuters) – 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.
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% of their global payments revenues, Accenture estimates.
Banks face rising competition from tech start-ups like Silicon Valley payment providers Stripe and Square, as well as technology platform PayPal, and the likes of London-based TransferWise that offer foreign exchange payments to retail and small business customers with lower fees.
More payments are becoming…
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