1.2 Money in our era
Since money is in a rapid transformation process, we are in a period where everything that money comes into contact with has to be modernized. We are in an important transition period when classical shopping methods are left behind, and people can shop within their comfort zone and even when they feel most comfortable. When we look at the focal point of this process, we see that the right solutions together with fast technologies are the most effective instruments. Every solution that is brought together with technology is formed by the change and transformation of the old solutions in the past that follow it. For this reason, although today's solutions are progressing with some important deadlocks, what about tomorrow?
In just a few years, major advances in technology, massive shifts in consumer buying behavior, changes in government policies and regulations, sharp ecommerce growth, and the global proliferation of connected devices have driven significant changes in digital payments.
The total global transaction value for the digital payments market was $5.44 trillion in 2020. Driven by the ongoing wave of innovation and rising customer demand, that number is projected to more than double to $11.29 trillion by 2026.
As the payment market grows, increased competition is eroding margins for traditional providers. And new digital services created by innovative new market entrants are creating a new service paradigm that traditional providers are increasingly forced to keep pace with.
This new wave of innovation and competition is challenging traditional payment providers to undertake value-driven digital transformation — evolving their offerings to create new value for customers, partners, and themselves in innovative and engaging ways.
The good news is that some of the most globally prominent traditional payment providers have already made big leaps to get ahead of these shifts. Both Visa and Mastercard have recently made huge investments in data aggregation and insights, to help them deepen their services, create value in new ways, and plot a clear path forward in today’s shifting payments landscape.
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