Payment in RMB.pdfVIP

? 2011 Wells Fargo Bank, N.A. All right reserved. 1 The zen of yuan and yen: Asian payments enter the mainstream Nick Orchard Global Product Management Global Payments Conference ? 2011 Wells Fargo Bank, N.A. All right reserved. 2 Asia statistics and trends ? 2011 Wells Fargo Bank, N.A. All right reserved. 3 Asia trade flows Asia will become the global trade hub by 2020, accounting for ~60% of global trade volumes US$ BN 2008 ? 2020 (CAGR) North America South and Central America Europe Africa Asia 3,702 ? 10,763 (9%) 4,479 ? 7,171 (4%) 1378 ? 2,475 (5%) 998 ? 2.247 (7%) 134 ? 448 (11%) 864 ?1,306 (4%) 204 ? 1,159 (16%) 184 ? 608 (11%) Source: Global Insight, Oliver Wyman analysis 137 ? 1,574 (23%) 616 ? 829 (3%) ? 2011 Wells Fargo Bank, N.A. All right reserved. 4 Asia payment trends Number of Worldwide Non-Cash Transactions by Region (Billions), 2001 vs. 2008 CAGR (?01-‘08) (?07-‘08) 8% 9% 16% 16% 18% 14% 24% 16% 26% 28% 16% 12% 6% 6% 5% 4% 2001 2008 Global Developing Economies Mature Economies N o n -C a s h T ra n s a c ti o n s ( B il li o n s ) Note: ―CEMEA‖ (Central Europe, Middle East and Africa) does not include Russia; ―mature Asia-Pacific‖ includes Japan, Australia, South Korea and Singapore; ―Latin America‖ does not include Brazil Source: ECB DWH—2008 figures, released Nov. 2009; Bank for International Settlements, Red Book, 2008 figures, released March 2010; Capgemini analysis, 2010 ? 2011 Wells Fargo Bank, N.A. All right reserved. 5 Internationalization of RMB ? Drive strategic growth of role as dominant trade economy ? Provide measured liberalization to maintain stability ? Introduce trade settlement zones of gradually increasing scope ? Trade flows to/from China – 2000 = $474 million – 2010 = $3 billion ? 2011 Wells Fargo Bank, N.A. All right reserved. 6 Asia payment trends ? Efficiencies of developed Asian payment systems ? Rapid adoption of electronic payment systems in developing Asian countries ? Differences of in-cou