Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Hyperface and Tutelar tie- up for fraud and risk management services

    May 6, 2024

    PhonePe ties up with Star Health Insurance offers monthly payments plan

    April 17, 2024

    Ramit Goyal appointed as Chief Distribution Officer at Future Generali India Insurance

    April 17, 2024
    Facebook Twitter Instagram
    BFSINXT
    Twitter YouTube LinkedIn
    • Banking
      • SME /Wholesale Banking
      • Retail
      • HR
        • Wholesale
      • Rural & Agri
    • NBFC
      • Customer Experience
      • Retail
      • Digital
    • Insurance
      • Life
      • General
      • InsurTech
    • Fintech
      • Payments
      • Lending
      • Wealth/PF
      • Neo-Banking
    • Policy
      • RBI
      • IRDAI
      • SEBI
      • Government
    • Financial Services
      • Securities
      • AMC
    • About us
      • Editorial Team
      • Our Advisory Panel
      • Get In Touch
    BFSINXT
    Home » Banks need to step up payment services to support SME as backbone of the economy: Capgemini Report
    Banking

    Banks need to step up payment services to support SME as backbone of the economy: Capgemini Report

    According to Capgemini Report, 89% of small and medium businesses (SMBs) are considering switching to challenger banks and alternative PayTech providers.
    October 8, 20222 Mins ReadBy Bfsinxt Desk
    Twitter LinkedIn WhatsApp

    A study by Capgemini Research Institute titled as ‘World Payments Report 22’, finds that new payment methods are expected to increase from around 17 percent of total non-cash transaction in 2021 to around 24 percent by 2026. While B2C payments have flourished, the B2B value chain has too often been neglected.

    It added, “The payments industry has remained resilient through recent unprecedented market volatility, accelerated by the adoption of innovative new digital payment methods for consumers. However, many banks are failing to provide the same support for small to medium businesses.”

    According to the report, despite promising post-pandemic recovery levels, SMBs are continuing to struggle with cash flow issues and conversion cycles, stunting the next phase of growth for many. This has led to rising demands for payment service providers to step up, realign their priorities and assemble the right tools to help SMBs to explore new market opportunities, the report further said.

     “Small and medium businesses are the backbone of global economic growth, contributing to half of global GDP and global employment. And yet, they are some of the most affected by the recent market volatility,” said Jeroen Hölscher, Global Head of the Payments and Cards segment at Capgemini. “Banks and payment service providers must realign their priorities to capture this untapped value through innovative and experiential payment services.”

    While the SMB market segment is now worth upwards of USD850 billion worldwide, cites the report, SMBs are still often overlooked in favor of larger corporate accounts and the bigger retail market by the legacy banking industry.

    To win back SMB loyalty, banks will have to amplify platform value which can only be unlocked through tackling restrictive legacy systems currently stifling growth, it added.

    The report found that more than a quarter of banks struggle with monolithic and inflexible infrastructures, with 75% of the executives prioritizing costs towards keeping current systems running over innovating new value propositions – a clear barrier to needed investments in innovation and flexibility that SMBs crave.

    Instead, payment firms should embrace composability which lets them select and assemble building blocks in various combinations to satisfy customer requirements. In doing so, firms can configure their offerings to best align with SME needs, powered by harmonized data, to deliver a unified value proposition by enabling payment firms to build B2B marketplaces for SMBs, the report said.

    Banking Payments SME
    Previous ArticleU GRO Capital raises impact funds of USD 5 million in partnership with Enabling Qapital
    Next Article ICICI Bank launches ‘Smart Wire’, an online solution for inward remittances
    Bfsinxt Desk

    Related Posts

    Cashfree Payments launches ‘RiskShield’ to combat cyber payment frauds

    April 10, 2024

    Mastercard ties-up with Alipay for cross-border solutions

    April 10, 2024

    Indian banking sector continues to grow with better asset quality, high credit growth: FICCI- IBA Bankers’ Survey

    March 27, 2024

    NPCI International signs MoU with Eurobank to drive inward remittances

    March 21, 2024

    Leave A Reply Cancel Reply

    Recent Posts

    • Hyperface and Tutelar tie- up for fraud and risk management services
    • PhonePe ties up with Star Health Insurance offers monthly payments plan
    • Ramit Goyal appointed as Chief Distribution Officer at Future Generali India Insurance
    • Cashfree Payments launches ‘RiskShield’ to combat cyber payment frauds
    • Mastercard ties-up with Alipay for cross-border solutions

    Recent Comments

    No comments to show.
    Demo
    NBFC's

    Aditya Birla Housing Finance launches ‘ABHFL- Finverse’ for better loan experience

    March 30, 2024

    Shriram Finance raises USD 750mn through Social Bond from International Bond Markets

    January 23, 2024

    Karnataka Bank and Clix Capital enter into a Co-Lending Partnership

    January 17, 2024

    UGRO Capital raises USD 30 Million through NCDs from FMO

    January 2, 2024
    New Policy
    Policy

    Reserve Bank of India opens Sub-office in Itanagar, Arunachal Pradesh

    October 23, 20230By Bfsinxt Desk

    On October 20, 2023, Dr. Michael Debabrata Patra, Deputy Governor, Reserve Bank of India (RBI), inaugurated…

    GSTN gets included as a Financial Information Provider under Account Aggregator Framework

    November 23, 2022

    RBI to run Nation-wide Finanical Services Awareness Programme in November 2022

    November 3, 2022

    RBI to soon operationalise CBDC Wholesale (e₹-W) Pilot

    November 1, 2022
    • Twitter
    • YouTube

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    BFSINXT
    Twitter YouTube LinkedIn
    © 2025 bfsinxt.com.

    Type above and press Enter to search. Press Esc to cancel.