Global Payments Growth Slows as Valuations Fall Below Historical Averages
According to Boston Consulting Group's latest Global Payments Report, the global payments industry is expected to grow at an annual rate of 5% through 2030, down from a previous average of 7%. The sector will reach $2.6 trillion in revenue by that year but faces slowing growth and regional divergence, with faster expansion occurring in Latin America (7%), the Middle East and Africa (8%) compared to North America and Europe (5%). Payments companies are trading below historical valuation levels, creating a gap of approximately $500 billion in market capitalization. Rising costs related to wages, cloud spending, and fragmented technology stacks have outpaced revenue growth over the past three years. The report highlights how AI is strengthening leading payments firms by reducing costs and improving customer relationships, while merchants are increasingly evaluating their acquirers for readiness in agentic commerce—where AI agents manage purchases on behalf of consumers. Nearly 73% of large merchants surveyed said they would switch providers to better prepare for this shift. BCG also notes that AI is accelerating automation in transaction banking by improving document processing accuracy, which could help banks streamline trade finance operations.
Topics: global growth payments industry regulatory changes valuation trends