Account-to-account payments and instant payments will spark a new wave of innovation Page 1

• Only 5% of banks are ready to lead the direct payments acceleration
• Instant payments via account-to-account (A2A) could impact card transaction growth by 15-25%

Paris, September 10, 2024 – The Capgemini Research Institute Global Payments Report 2025published today, reveals an industry that will be reinvented with account-to-account and instant payments. Now celebrating its 20^and In its anniversary edition, the report predicts that instant payments will account for 22% of all non-cash transaction volumes globally by 2028.

Since the inaugural World Payments Report in 2004, the payments industry has undergone a dramatic transformation over the past two decades. Digital technologies such as wallets, peer-to-peer (P2P) payments and contactless payments have become increasingly prevalent. Regulation has also played a crucial role in driving innovation and ensuring consumer protection. As a result, the payments ecosystem is now more connected, harmonised, efficient and secure than ever before.

Non-cash transactions on the rise; APAC leads adoption
The volume of non-cash transactions increased to 1.411 billion in 2023 and is on track to reach 1.650 billion in 2024. As customers today prefer a smooth payment experience, this trend is expected to continue as the number of non-cash transactions is expected to reach 2.838 billion in 2028.

Today, Asia Pacific (APAC) is one of the fastest growing regions for cashless transactions, with a 20% year-on-year increase by 2024 compared to Europe (16%) and North America (6%). Globally, most industry executives (77%) identify e-commerce growth as the critical driver accelerating the shift to cashless transactions.

A2A payments are a challenge for traditional card schemes
Account-to-Account (A2A) instant payment solutions offer a faster and more cost-effective way to pay, bypassing expensive card networks. According to the report, their growing popularity threatens to challenge the dominance of traditional debit cards, with estimates suggesting they could offset 15-25% of future card transaction volume growth. Given that interchange fees and interest charges are a key source of profit, financial institutions may see this as a significant risk with the potential to cost industry incumbents billions in lost revenue.