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The share of digital payment transactions to total monthly retail payments in the Philippines grew from 42.1% in 2022 to 52.8% in 2023, according to the Bangko Sentral ng Pilipinas (BSP). This indicates that the central bank has surpassed its target of digitalizing 50% of digital payments volume in the country under its Digital Payments Transformation Roadmap 2018-2023. In terms of value, the latest e-payments measurement also showed that the share of monthly digital payments to total transactions increased to 55.3% in 2023 from 40.1% in 2022. The main contributors to the rise in e-payments were merchant payments which accounted for 64.9% of monthly digital payments volume, person-to-person transfers at 19.3%, and business-to-business supplier payments at 6.1%.

According to McKinsey, digital payment transactions grew rapidly in emerging markets during the past two years, as the pandemic accelerated shifts to contactless payments and e-commerce. E-wallets proliferated, real-time account-to-account transfers took off, and industry players formed new partnerships to access capabilities and broaden their customer base. Some of the fastest growth occurred in Africa and Southeast Asia, where low banking penetration gives payments providers opportunities to capture untapped potential and reach underserved populations... Margins for digital payments providers are already wafer thin and are likely to be eroded further by competitive intensity and declining fees. In many cases, payments are more a means to cross-sell other products than a profit center in their own right. Some services, such as peer-to-peer (P2P) payments, are usually offered to users for free in most markets. In Brazil, for instance, Pix is pushing margins down by offering P2P payments for free and person-to-merchant (P2M) payments at low cost.

The Riksbank considers it necessary to increase the possibility of making payments even in the event of major disruptions in data communication. Therefore, card payments should be possible even without functioning data communication, i.e. offline. Hence, the Riksbank will collaborate with the private and public actors concerned, including card network providers, card acquirers and retailers, to achieve a common view and identify measures. The Riksbank considers the technical conditions for offline payments already favorable, but issues to be resolved around administrative processes, how abuse of offline payments can be curbed and who should bear the liquidity and credit risk arising from an offline payment. The Riksbank's objective is that, by July 1, 2026, it shall be possible to make card payments offline for the purchase of essential goods in the event of disruptions lasting up to 7 days. The possibility shall apply to all those over the age of 18 who have a card with one of the banks covered by the Riksbank's regulations.

FIS published its 2023 Global Payments Report that examines how consumers pay today both in-store and online across 40 global markets. In 2022, there were almost 70 real-time payment (RTP) schemes providing high-speed payment rails that helped drive account-to-account (A2A) payments to account for $525 billion in global e-commerce transaction value, versus $463 billion in 2021. A2A payments flow directly - and often instantly - from a consumer's bank account to a merchant's account, helping to drive down the cost of acceptance for merchants. The growth of A2A in the U.S. mirrors the global trend, with A2A accounting for 9% of e-commerce transaction value in 2022. This is projected to keep growing, fueled in part by consumer use cases arising from the 2023 launch of the Federal Reserve's FedNow payments network, and the existing RTP from The Clearing House and Zelle real-time payment networks

The authors of a recent IMF working paper, based on a study of the declining use of cash for payments relative to payment cards and e-money in 24 of 25 countries studied, concluded that the main impact of the introduction of a retail central bank digital currency (CBDC) will be on the usage of cash substitutes. They assume that central banks will likely design their CBDCs to largely match user and merchant benefits associated cards use in terms of convenience, speed of payment, fraud control, and other desirable payment attributes, and then run through the additional incentives that may be required for their adoption and use. These might include zero fees to both users and merchants, and making payments immediately final and available in receivers' bank deposit accounts. However, card schemes may fight back by reducing interchange fees and providing merchants immediate access to card sale revenues and make up the revenue loss elsewhere. Also, card firms that own and supply fast payment services may choose to rely on these newer payment services going forward, providing zero-cost person-to-person mobile payments, as well as person-to-business point of sale transactions and business-to-business invoice payments, with fees paid for by the receiver.

The Eurosystem has a mandate to promote the smooth functioning of the payment system from a holistic perspective. From the perspective of retail payments, the smooth functioning of the payment system means ensuring that, in their tangible interaction with the euro, people and businesses are able to make safe and efficient payments and thus their trust in the currency is maintained. To this end, the Eurosystem is responsible for issuing public money, currently in the form of cash, which may possibly be complemented by a digital version, i.e. a digital euro. In addition, the Eurosystem can act: (i) as a catalyst for change, promoting efficiency in the field of retail payments; (ii) as overseer, setting retail payment standards and rules and ensuring compliance; and (iii) as an operator, having the possibility to set up public infrastructures. The trends at work in the retail payments landscape have the potential to bring benefits to consumers and businesses alike. However, they also carry risk and will require the Eurosystem to take action in its different capacities. This article looks at the changing retail payments ecosystem, before turning to the Eurosystem's multi-faceted policy response and providing perspectives on the way ahead.

The Bank for International Settlements (BIS) proposed a formally defined model to represent three key functions of payment system architectures: issuance/withdrawal, holding and transfer of funds in a standardized manner. The model defines payment diagrams, using a precisely defined syntax. The paper illustrates the application of these diagrams for domestic and cross-border account transfers, as well as cash, card, e-money and stablecoin payments. However, the payment diagrams can be used for any type of funds and can be applied across different payment system architectures. It also demonstrates how the diagrams correspond to the balance sheet approach commonly used in economics, and that it offers added value by providing an end-to-end visualization of every stage of the payment journey. The model provides a tool for central banks, regulators and the payment industry to better understand and compare existing and new payment system architectures.

The People's Bank of China (PBOC) has added a new function to its e-CNY payment app so that select Android-based mobile phones can be still be used to make tap-to-pay payments without internet connection or power. Users need to activate the function in the e-yuan app, and can choose how many times it can be used and how much can be paid after their phone shuts down. A verification code needs to be entered on the device if a payment exceeds the code-free quota, and payment will continue only if it passes the system check. Users also can set payment limits in their phone settings. In addition, if users have lost their mobile phones they can log in to the e-yuan app on another mobile phone to suspend the payment-without-power function.

The Bank for International Settlements (BIS) Committee on Payment and Market Infrastructures (CPMI) published a brief that highlights key retail payment trends based on 2023 data collected from member jurisdictions. It demonstrates that the use, or volume, of cashless payment methods continued to grow in 2023 and that consumers increasingly choose to pay digitally for small value transactions. Although broad based, the growth in cashless payments was especially strong in emerging market and developing economies (EMDEs), driven by a sharp increase in the use of credit transfers (mostly fast payments) and e-money. It also finds that the uptake of fast payments is generally higher in jurisdictions with lower levels of cash in circulation and wider use of payment cards, especially for small payments. However, the demand for cash withdrawals generally remained stable compared with previous years.

The Capgemini Research Institute published its 2023 World Payments Report. reveals non-cash transaction volumes will reach 1.3 trillion by 2023 globally. As consumers and businesses adopt new digital payment schemes, the report suggests this growth will accelerate to 2.3 trillion by 2027 growing at a rate of 15% annually. At a regional level, digital payments will grow by 19.8% across the Asia Pacific, 10.7% in Europe, and 6.5% in North America by 2027. According to the report, by 2027, new payment methods (instant payments, e-money, digital wallets, account-to-account, and QR code payments) will make up approximately 30% of total volume, with traditional non-cash payments (checks, direct debits, cards, and credit transfers) dropping to around 70% of overall non-cash transaction volumes.

Giesecke+Devrient (G+D) has unveiled its Filia Unplugged offline payment solution that can be integrated into existing digital payment platforms, including tokenized deposit systems, instant payment systems, or mobile money services. It enables use cases such as peer-to-peer payments (P2P) or payment-to-business (P2B) payments. The solution stores monetary tokens on a hardware wallet (e.g. the SIM card of a smartphone) and requires only two wallets to operate, which can then be used without an online connection, for example via near field communication (NFC).

Sveriges Riksbank published the fourth and final report on its e-krona proof-of-concept (PoC) work ( the report calls it a "technical pilot" but a "pilot" involves real users transferring real central bank digital currency (CBDC) in limited ways). The solution reserves e-krona for offline use in a "shadow" wallet in the online system. The payment instrument in the form of a payment card records the shadow wallet's balance and subsequent offline transactions. The actual e-kronas issued by the Riksbank never leave the online system and only change hands when the payment instruments are synchronized. The report concludes that offline payments are viable, but "a secure and functional offline solution requires a lot of development work on technology, regulations and processes".

The Committee on Payments and Market Infrastructures (CPMI) published a brief that highlights key payment trends as observed in the 2022 Red Book statistics (available at the BIS Data Portal). These statistics were collected in the second half of 2023 from CPMI member jurisdictions. The use of digital payment methods continues to increase, particularly for small amounts. In tandem, cash withdrawals and the number of small-denomination banknotes in circulation have declined. Fast payments reached new heights and are a prominent driver of the digitalisation of countries' payment ecosystems. Even so, consumers continue to use cash to pay at home and abroad: both cross-border card and e-money payments and cross-border cash withdrawals increased sharply in 2022. (Data portal: https://data.bis.org/topics?topicFilter=CPMI)

The Official Monetary and Financial Institutions Forum (OMFIF) Digital Monetary Institute (DMI) published its annual Future of Payments report, based on a survey of 34 central banks, 13 from advanced and 21 from emerging market economies. It found that platforms based on multi-currency central bank digital currencies (CBDCs) are emerging as alternatives to existing cross-border payments systems, with Project mBridge being the most advanced, although liquidity issues and governance concerns still pose limitations for widespread adoption. CBDC interoperability will be a key consideration for global payments going forward, with a hub-and-spoke model being favored by survey respondents. Standardization (e.g., migrating to ISO 20022 standards) is helping to reduce the costs and frictions in cross-border payments, but implementation is patchy. However, instant payments systems are rapidly growing in importance, with 47% of survey respondents selecting it as the most promising avenue for improving cross-border payments.

Blockchain for Europe published a roadmap for the future of payments in a Distributed Ledger Technology (DLT) oriented European economy. The paper provides an analytical framework dividing the digital payments value chain into three pillars: the contract execution system, the digital payment infrastructure, and the monetary unit. Based on this framework, the authors compare technology platforms, public and private sector payment solutions, including a bridge solution, e-money tokens, and central bank digital currency (CBDC) including "synthetic" CBDC. It concludes that the optimal payment solution for Europe would be a DLT-based euro CBDC but it is unlikely that it will be implemented in the short term, and unclear if it will address all the challenges and needs of the European economy and its consumers.

The European Central Bank (ECB) has approved a new oversight framework for electronic payments following a public consultation. The Eurosystem will use the new payment instruments, schemes and arrangements (PISA) framework to oversee companies enabling or supporting the use of payment cards, credit transfers, direct debits, e-money transfers and digital payment tokens, including electronic wallets. It will also cover crypto-asset-related services, such as the acceptance of crypto-assets by merchants within a card payment scheme and the option to send, receive or pay with crypto-assets via an electronic wallet.

Sveriges Riksbank responded to the Parliamentary Payment Inquiry report that was published in March 2023. It agreed with the report's conclusion that too many people lack access to both digital and cash payments and that the state needs to take further measures to make digital systems more accessible, less vulnerable and more reliable. Legislation on cash needs to be tightened up so that retailers are obliged to accept cash as payment for essential goods, with exceptions, such as for smaller businesses. Also, banks should offer payment accounts with limited functionality. However, the Riksbank considers that the Inquiry has not gone far enough in its proposals for a future state role in the payment system and that, for example, legislative work on a possible e-krona should begin immediately. And although the Riksbank agrees with the Inquiry's proposals on state guarantees for offline card payments, regulatory push and technical standards are also required.

The Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBOC) are expanding the scope of the e-CNY pilot in Hong Kong to facilitate the set up and the use of e-CNY wallets by Hong Kong residents, as well as the top-up of e-CNY wallets through the Faster Payment System (FPS). This marks the world's first linkage of a faster payment system with a central bank digital currency (CBDC) system. Users can now set up e-CNY personal wallets in Hong Kong, which requires only their Hong Kong mobile phone numbers. The e-CNY wallets can then be used for cross-boundary payments to merchants, but not person-to-person (P2P) transfers.

The Monetary Authority of Singapore opened up direct access to the banking system's retail payments infrastructure to eligible non-bank financial institutions (NFIs) from February 2021. NFIs that are licenced as major payment institutions under the Payment Services Act will be allowed to connect directly to Fast and Secure Transfers (FAST) and PayNow. This will enable users of NFI e-wallets to make real-time funds transfers between bank accounts and e-wallets as well as across different e-wallets. Currently, most e-wallets require the use of debit or credit cards to top-up funds, and funds transfers between e-wallets are not possible.

Nepal's central bank has given approval to Nepal Clearing House to operate the national payment switch. The payment gateway will integrate multiple banks, digital payment vendors into one system enabling them to transfer funds. In the first phase, all non-card transactions that are done through mobile banking, e-banking, e-wallet or QR code will be routed through the switch. In the third phase, all domestic electronic transactions will be routed through the switch.