PayTech: US dominates, but climbs Nexi rankings

According to the Mediobanca Research Area, 88% of the PayTech sector’s turnover is owned by 15 companies, all of which belong to the United States – Worldline is growing in Europe, while Nexi ranks fourth – by 2020, boom digital money

The United States has an undisputed and undeniable dominance in the payment industry. The Mediobanca research area certifies its first edition Report by Sulle Paytech The financial statements for the three years 2018-2020 and the first nine months of 2021 exceeded 25 billion PayTechs revenues of one billion euros.

Big Five and World Rankings

Five US companies – America Express, Visa, Paypal, Mastercard and Fiserv – represent 59% of the Paytech sector’s international revenue. Considering the combined revenue of 15 US-based companies, US dominance is expanding to 88% overall. This was followed by European and Brazilian groups with 10% and 2% of world turnover, respectively, reaching $ 140 billion last year.

In the rankings drawn up by the Mediobanca Research Center, the first place was firmly occupied by Visa, with $ 8,900 billion in payments, 3.6 billion in card circulation and 205 billion total transactions. In Europe, MasterCard Europe (4.4 billion) and Visa Europe (3.1 billion) are the major groups by 2020 revenue, but M&A has replaced the cards in the table, with Worldline acquiring Ingenico to become the first in Pro Pharma. Revenue 4.8 billion euros. Macina Levels Nexi moves from eighth to fourth place with sales of 2.9 billion euros, thanks to the acquisition of Nets and Sia. The Italian group is also leading in merchant acquisitions with 11.7% market share.

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“In general, the epidemic has negatively affected the balance sheet of these companies, although they have shown a positive decline, controlling the decline in wholesale turnover (-2% in 2019)”, explains Mediobanca. And now sees banking companies competing with new technology platforms, challenging banks and Pictech.

Boom del Cashless

Related data Non-cash transactions It reached an all-time high of $ 785 billion in 2020 (compared to $ 389 billion in 2014). “However, their growth was + 16.5% in 2018/19 and + 7.8% in 2019/20, which is affected by the effects of the epidemic,” the study underscores. Mediobanca’s estimate for 2021, citing Capgemini World Payments Report 2021, is over 920 billion transactions worldwide: 320 billion of which are related to Asia. From a geographical point of view, Italy ranks 26th in Europe in personal digital payments, but the strong distribution of Bose terminals and the tendency to pay via mobile are the possibilities for us to take advantage of the industry’s best development opportunities in our country. , The report explains.

Positive signals are also coming from’s accounts The first 9 months of 2021, PayTechs’ total revenue was 110.6 billion over the nine months (+ 14.4% in the first nine months of 2020, of which + 14.5% was for the US + 11.6% for European countries) and 17% for European groups (+ 24.1%).

Bodec in Italy

Last year, in Italy, the payments market fell 8.8% to 245.8 billion. Traditional retail trade is down, representing 73% with 180.5 billion, but has recorded an average annual decline of -6.7% since 2018. On the other hand, digital payments have increased, growing at an average rate of + 7.1% in 2018-2020 and reaching a total value of 40 40 billion in 2020, thanks to e-commerce. In total, the balance of electronic money in circulation in Italy at the end of 2020 was 11.4 billion (+ 28.1% in 2019).

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Despite the strong expansion of digital payments, the share of money in transactions in our country is still high (58% in value and 83% in volume in 2019), well above the European average (48% and 73%, respectively). “Despite the false myth that electronic payments are more expensive than cash, Mediobanca explains that it hides hidden costs associated with manufacturing, transportation and management, which is 7.4 billion a year in Italy’s banking (0.45% of GDP) and that this affects the company’s profits and our country’s competitiveness.

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