TOP TRENDS IN
PAYMENTS
2022
SLIDESHARE DECK
RESEARCH INSTITUTE
November 2021

Payments Trends 2022 | SlideShare deck | November 2021 2
Company Confidential © Capgemini 2021. All rights reserved |
ASSESS YOUR SCENARIOS!
STRIKE THE BALANCE BETWEEN ADOPTION AND BUSINESS IMPACT!
Top Trends in Payments for 2022 by Capgemini
Source: Capgemini Financial Services Analysis, 2021.
Customer centricity
1 Next-gen payment methods will drive growth in the Payments 4.X era
2 Digital ID infrastructure will be the key as payments become transparent
Go-to-market agility
3 D2C and other novel propositions from non-banks empower SMBs and merchants
4 BigTechs foray into B2B segment through partnerships
Open ecosystem
5 Cost and operational advantages drive banks to embrace open ecosystems
Intelligent process
6 PaaS and data-based API business models help unlock new frontiers
Business resilience
7 Cybersecurity is critical as data becomes nimble in open finance future
8 PayTechs focus on market expansion and M&As to improve profitability
9 Consolidation remains unabated driven by need for economies of scale
10 Growing interest on CBDCs demand future-readiness
Adoption
priority
(2022)
Business impact (2022)
Medium
High
Significant
Medium High Significant
1
5
4
8
9
10
6
7
3
2

Payments Trends 2022 | SlideShare deck | November 2021 3
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TREND 1: NEXT-GEN PAYMENT METHODS WILL DRIVE GROWTH
IN THE PAYMENTS 4.X ERA
The traditional
payments instrument
mix is morphing into a
new payments mix
due to accelerated
customer adoption of
digital payments
The pandemic increased the urgency for banks and payments firms to modernize payment systems,
transform the payments mix and increase affinity to digital payments.
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
Traditional payments mix
Cas
h
Checks Credit
cards
Debit
cards
Credit
transfers
Direct
debits
Traditional payments
Instant payments +
e-money payments
The COVID-19 pandemic
accelerated
customer adoption
of digital payments
Instrument mix is
getting altered
E-commerce
is the mainstream
shopping preference
End-to-end payment
experience is critical
New payments mix

Payments Trends 2022 | SlideShare deck | November 2021 4
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TREND 2: DIGITAL ID INFRASTRUCTURE WILL BE THE KEY AS PAYMENTS BECOME
TRANSPARENT
As consumers and
businesses demand
safeguards from
payment fraud,
digital ID evolves as a
prominent tool for
remote identification
and authentication
Access to a single, unified, more integrated digital ID scheme will streamline the identity process globally,
and enhance consumer experiences in Payments 4.X era.
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
DIGITAL ID
INFRASTRUCTURE
Individual
control over
ID data
Catalyst for
financial
inclusion
Multi-use
cases extend
beyond
payments
Security and
convenience
Frictionless
onboarding
Universal
access and
speed

Payments Trends 2022 | SlideShare deck | November 2021 5
Company Confidential © Capgemini 2021. All rights reserved |
TREND 3: D2C AND OTHER NOVEL PROPOSITIONS FROM NON-BANKS EMPOWER
SMBS AND MERCHANTS
As the gap between lending and payments shrinks, expect to see more innovative offerings
built on data and intelligent analytics to improve CX for SMBs.
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
SMBs have little access to formal
credit owing to roadblocks such as
insufficient credit history, slow loan
approval processes, and inflexible
policies of traditional lenders
Digital channels are providing a
fast, seamless, and convenient way
to serve SMBs
Growing adoption of digital payments
accelerated by the pandemic
Unmet
market needs
Digital
proliferation
Customer
readiness
Enhanced customer experience for
SMB customers being delivered by
new-age players will further increase
the expectations for fast and
seamless services
The lending pie will grow as the
underserved segments get
easy access to credit
Probability of delinquencies and
defaults will reduce with vendor
payments and supply-chain financing
options becoming digital
To fill the gap left
by the traditional
lenders, new age
players are coming
in with tailored,
innovative, and
niche offerings to
address SMBs’
unique needs

Payments Trends 2022 | SlideShare deck | November 2021 6
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TREND 4: BIGTECHS FORAY INTO B2B SEGMENT THROUGH PARTNERSHIPS
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
BigTechs
Core assets
Primary resources which
BigTechs are using to offer
products and services for their
B2B clientele at scale
Business strategy
Strategies deployed to acquire
capabilities and/or infrastructure
to distribute offerings
Primary offerings
Services to enable payments
and transactionall services
Value-added services
B2B marketplaces can be facilitated
through their ecosystems for a
frictionless one-stop shop for businesses
Invoice automation
and disbursements
Deep
pockets
Advanced
technology
resources
Tech giants
leverage
payments as a
steppingstone in
their FinTech
journey to
expand their
customer base
SMB lending is slowly moving to BigTechs, and in 2022, banks will compete with these technology giants
while also collaborating regarding capabilities and reach.

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TREND 5: COST AND OPERATIONAL ADVANTAGES DRIVE BANKS TO EMBRACE
OPEN ECOSYSTEMS
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
OPEN
ECOSYSTEMS
Access to federated
data exchanges
Capabilities for
beyond-banking
and payment services
Resources for fraud prevention
and transaction monitoring
Expedited adherence to
standards and compliance
Shared utilities for operational
and cost efficiencies
Firms are
embracing open
ecosystems to
gain efficiencies
at scale while
reducing costs
through
shared utilities
Open ecosystems make bode well in low-profit environments as they offer FIs a cost-effective way to meet consumer demand
while utilizing digital efficiencies to streamline operations.

Payments Trends 2022 | SlideShare deck | November 2021 8
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TREND 6: PAAS AND DATA-BASED API BUSINESS MODELS HELP UNLOCK NEW FRONTIERS
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
To generate new
revenue streams
from financial and
non-financial
partnerships, banks
and payments firms
need to build a
strategy for
leveraging APIs and
open banking
Banks must build foundations that deliver flexibility and agility to offer customer-centric solutions,
and in line with that, incumbents will craft API strategies in 2022 and beyond.
Infrastructure
(inward looking/back-end)
 Native embedding of
on-demand infrastructure
requirements for real-time
payments processing,
messaging, smart routing,
cross-border payments e.g.,
SWIFT, Finix, Volante-Ripple
 Dominated by e-commerce
players e.g., Shopify,
Amazon, Tencent
 Good at marketplace
economy and generate
network effects
Distribution
(customer-facing)
Connection
(FinTech/third-party facing)
 Compliance-as-a-Service,
consent management,
federated digital ID
 E.g., Plaid, Qover, Intuit,
Quickbooks
Collaboration
in Payments 4.X

Payments Trends 2022 | SlideShare deck | November 2021 9
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TREND 7: CYBERSECURITY IS CRITICAL AS DATA BECOMES NIMBLE IN OPEN FINANCE FUTURE
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
As more and more
consumers
embraced new
payments methods
in the wake of the
pandemic,
cybersecurity
became even more
important
In 2022, expect firms to implement a combination of digital identity, automation, and analytics
to derive insights that reduce cyber risks and offer value-added customer services.
Artificial
intelligence, machine
learning
Data analytics
Regulations on
cybersecurity-digital ID
Cyber-risk
mitigation solutions
implemented by
FIs and regulators
Factors driving
the importance of
cybersecurity in
payments space
Growth in non-cash
transactions volume
Increase in ecommerce
payments
Accelerated innovation in
payment methods
Rising cyber threat
Rising cyber threat
Cloud technology

Payments Trends 2022 | SlideShare deck | November 2021 10
Company Confidential © Capgemini 2021. All rights reserved |
TREND 8: PAYTECHS FOCUS ON MARKET EXPANSION AND M&AS TO IMPROVE PROFITABILITY
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
In 2022 and the years ahead, the payments industry will shift from
payments as a product to becoming an enabling function for customer reach and CX.
Inception
(0–5 years)
Proliferation
(5–7 years)
Diversification
Primary
offering
Scale-up offering
(within FS)
Scale-up offering
(beyond FS)
Boosting
revenues and
profits
Creating a
digital
ecosystem
Expanding
to new
geographies
Set their sights on bigger
ambitions by diversifying their
offerings to achieve business
resilience
Riding on success of
non-card products and
services
Digital payments as an entry
point for FinTechs to set foot in
financial services
Strategic
ambitions
Data-driven hyper-scalers move on from payments and set
their sights on diversifying offerings, building ecosystems,
and achieving profitability and business resilience

Payments Trends 2022 | SlideShare deck | November 2021 11
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TREND 9: CONSOLIDATION REMAINS UNABATED DRIVEN BY NEED FOR
ECONOMIES OF SCALE
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
As consolidation continues, payments firms might bulk up to offer a one-stop shop for end-to-end services
and provide a wide variety of value propositions.
Payments firms
realize the need for
consolidation to
increase their scale
of operations,
expand their
portfolio, and
extend their
geographical
reach.
Urgency to scale up operations,
expand portfolio, and geographical
reach to remain resilient and
sustainable in payments industry
Potential cost savings by
establishing synergy
with leading technology
players or large FIs
Accelerated growth in
payments innovation and
unprecedented customer need
for personalized experiences
Call for modernizing of the
incumbents inflexible, expensive,
and outdated legacy core systems
Need to mitigate
competition and increase
market share in payments
landscape
Consolidation
drivers

Payments Trends 2022 | SlideShare deck | November 2021 12
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TREND 10: GROWING INTEREST ON CBDCS DEMAND FUTURE-READINESS
Source: Capgemini Financial Services Analysis, 2021.
Customer
centricity
Go-to-market
agility
Open
ecosystem
Intelligent
process
Business
resilience
As consolidation continues, payments firms might bulk up to offer a one-stop shop for end-to-end services
and provide a wide variety of value propositions.
Realizing the importance of developing digital fiat
currency, as many as 86% of the world’s central banks
are exploring digital currency in various use cases
High cross-border transaction cost
CBDC will help curb the higher cross border
transaction cost incurred in legacy settlement
process due to presence of intermediaries
Thread of illicit transactions
CBDCs will help eliminate the unlawful
activities and terror financing that shot
up significantly through cryptocurrencies
Widespread acceptance of cryptocurrency
Payments firms and banks are including
cryptocurrency as an additional payment
method in their portfolio
Increase in cryptocurrency transaction volume
Nearly 32% increase in cryptocurrency transaction
volume, per Coinbase’s Q2 2021 report and over
45% of our WPR 21 surveyed consumers willing to
use cryptocurrency payments in next 1–2 years
CBDC
drivers
Cryptocurrency pressures monetary policy
To fend off the potential monetary policy
pressure from cryptocurrencies, central banks
are actively working towards CBDCs

This presentation contains information that may be privileged or confidential and
is the property of the Capgemini Group.
Copyright © 2021 Capgemini. All rights reserved.
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