McKinsey & Company, a global management consulting firm, found in their 2020 Global Payments Report that for the first time in 11 years global payment revenues would decline, largely due to the global COVID-19 Pandemic.
In their recently released 2021 Global Payments Report, McKinsey & Co. finds that while payments did decline last year. There are indications that payments will begin to rebound in 2021, bringing back revenues into the range of 2019’s highs. They also predict a “return to historical mid-single-digit growth rates, generating 2025 global payments revenue of roughly $2.5 trillion.”
There was a 16% drop in cash payments in 2020, but that is expected to rebound in 2021 as lockdown restrictions ease. The report does, however, suggest that some decline in cash payments may continue to exist.
The report also speaks to the work done by regulators in countries where there have been the highest cash usage reductions toward ensuring continued availability of and easy access to cash so that all citizens have access to a reliable payment system regardless of income status.