While fintechs and other nonbank payments providers continue to carve out more market share for themselves, banks could face losing up to $88 billion in payments revenue to them. That’s the assessment from Accenture, the consulting firm that on Wednesday released its latest report, “5 Big Bets in Retail Payments in North America.”
Of that $88 billion, $82 billion is attributable to U.S. banks and $6 billion to Canadian institutions.
Payments revenue among U.S. and Canadian banks is slowing. According to Accenture, retail-payments revenue will likely grow at a compound annual rate of 4% over the next six years, going from $322 billion in 2019 to $405 billion in 2025. To ensure getting a share of that growth, banks and other payment-industry incumbents need to shift strategies, Accenture says.