Explosion in digital purchases fires up sleepy payments industry. Consultants at McKinsey forecast global payments revenues will grow from $1.8tn in 2014 to $2.2tn in 2020.
Payments processing has long been considered an unfashionable operation that quietly ticks over in the depths of banks’ back offices. But it is now emerging as a hot sector, as companies rush to take advantage of the huge growth potential stemming from the global shift towards digital and mobile transactions. Vantiv, the largest processor in the US, led the dash to capitalise on the growing trend when it made a firm £9.3bn takeover offer for UK rival Worldpay on Wednesday, fending off competition from JPMorgan Chase in the early stages. The rival approach by the US’s largest Wall Street bank by assets highlights the strategic importance of the payments processing business to incumbents and new entrants, both vying for a dominant share of future revenue.