For the very first time China has overtaken the UK when it comes to digital payment transaction volumes, according to new figures released by BNP Paribas and consultancy firm Capgemini.

The World Payments Report 2016 also showed that globally, digital payment transactions are projected to reach 10 per cent growth for the first time (426.3 billion transactions) in 2015. This is up from the previous record-setting 8.9 per cent growth seen in 2014.

China has surpassed both the UK and South Korea in digital transaction volumes, taking fourth position among the top ten markets globally, behind the US, the eurozone and Brazil.

The report stated that the growth in digital payment transactions is largely being driven by strong economic growth in key developing countries, improved security measures such as EMV and biometrics, and government initiatives designed to encourage electronic payments in developing markets, as the cost of cash continues to rise.

As a result, banks are attempting to accelerate their investment and collaboration with FinTech firms in order to improve their digital payment transaction systems.

Other figures highlighted in the report found that digital payments in developing markets experienced the highest rates of growth (16.7 per cent), while mature markets grew six per cent in the same period. Despite this, mature markets still account for the vast majority of total global volumes (70.9 per cent).

Anirban Bose, head of banking and capital markets at Capgemini, said: “FinTechs as well as the creation of Innovation Labs in banking are establishing new precedents for developing superior customer journeys.

“The key now is in the mix of the partnerships and collaboration that can be done to drive out the most innovative digital services possible at the right ‘moments of truth’ along the customer journey.”

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