Your Friday fix for global fintech and payments news
From a new instant payment scheme being planned for Brazil, to news that the global mobile wallet market is set to reach a value of $1 trillion this year - this week’s news points towards promising years ahead for mobile payments. Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- Brazil preps instant payment scheme
- Global mobile wallet market value set to reach $1 trillion in 2020
- Klarna UK hits 7 million customers and 1.6 million app downloads
Big news from Brazil this week as the country’s central bank announces its plans for a new instant payment scheme, set to launch in November. The scheme, PIX, will allow Brazilian citizens, companies and government entities to make instant payments year-round via mobile phones, online banking and ATMs. The scheme will work using QR codes, phone numbers, emails and taxpayer identification. Operated and managed by the Banco Central do Brasil, PIX will run in a centralised settlement infrastructure called the Instant Payment System. With calls to provide alternative payment methods and drive digital innovation from within the region, such plans to construct an instant payment initiative mark a momentous move forward in the form of LATAM payment diversification.
The global mobile wallet market is set to hit an estimated value of $1 trillion by the end of 2020. What’s more, alongside the projected total value of the market, the leap in growth over the past few years has been monumental. From an estimated worth of $368 billion in 2017, rising to $745.7 billion in 2019, the growth rate of 36.5% year on year slows no sign of slowing down. Mobile wallets have become increasingly popular in recent years, with popular providers like Apple Pay, Google Wallet, WeChat Pay and Alipay, all commandeering the move towards a more digital payments future.
According to data from Statista, the mobile wallets market is currently dominated by China which is expected to generate close to 80% of global transactions in 2020. The UK was identified as having the third largest mobile wallets industry, with transactions this year set to reach close to $15 billion.
Global leader of ‘buy now, pay later’ payments, Klarna, has announced its latest figures this week, which show sustained growth both in the UK and around the world. Since it first launched in 2005, it boasts over 7 million customers in the UK alone, has doubled its customer base in the past year and more than 1.6 million UK customers have downloaded the app. Klarna’s position as the fintech ‘Unicorn’ over the past few years shows little sign of abating as it reached a value of $5.5 billion in 2019, ranking amongst the world’s top most privately held fintech companies.
Luke Griffiths, General Manager at Klarna UK, commented that: “These landmark numbers are testament to the enduring growth we have achieved, by offering customers newfound financial flexibility, enabling shoppers to get what they love, as well as remaining dedicated to our merchant partners across the country.”
Did you know that we have been part of Klarna’s journey with our TranzAxis platform helping drive it into new markets (including the UK) and keep providing the smoooth experience its loyal customers expect? Read more about our customer journey with Klarna here.