Juniper Research: Consumer A2A Payments - 186 Billion Transactions Globally by 2029

September 09, 2024 at 02:00 AM EDT

A new study from Juniper Research, the foremost experts in fintech & payment markets, has found the volume of global transactions via A2A (Account-to-Account) payments will rise from 60 billion in 2024 to 186 billion by 2029; an increase of 209%.

A2A payments (bank-to-bank transfers that do not require intermediaries) have gained global traction in recent years, as instant payment methods have become commonplace. A2A has gained an advantage over other payment methods, with instant settlements and cheaper transaction fees than cards increasing its desirability to merchants.

An extract of Global A2A Payments Market: 2024-2029, is now available as a free download.

Open Banking Innovation Driving A2A Progress

The report found Open Banking developments have enabled the proliferation of A2A solutions. Notably, Variable Recurring Payments (VRPs), an A2A-specific solution where customers connect authorised payment providers to their bank account, facilitate agreed recurring payments on the customer’s behalf, within set limits. Consequently, businesses have grown interested in VRPs due to their increased flexibility and transparency compared to direct debit.

Research author Matthew Purnell remarked: “VRPs provide a service not easily replicable beyond A2A, boosting A2A’s potential. Vendors must capitalise on this opportunity and offer merchants A2A-specific solutions that enhance consumer payment experiences like VRPs, improving satisfaction and rewarding repeated payments.”

Instant Payments Promoting A2A in Card-dominated Markets

The research found instant payment roll-outs are creating A2A-based opportunities, even in card-dominated markets like the US. For instance, FedNow, the US’s newest payment rail launched in 2023, has an average transaction fee of 4 cents; making this solution advantageous when compared to cards, with an average fee of 3.5% per transaction. Therefore, as adoption and use cases develop, cost-efficient A2A payments are likely to disrupt the card-dominated US market.

About the Research

The new market research suite offers the most comprehensive assessment of the A2A market to date; providing analysis and forecasts of over 22,000 datapoints across 60 countries over five years. It includes a ‘Competitor Leaderboard’ and examination of current and future market opportunities.

View the A2A Payments market research: https://www.juniperresearch.com/research/fintech-payments/emerging-payments/a2a-payments-research-report/

Download the free sample: https://www.juniperresearch.com/resources/whitepapers/whitepapershow-open-banking-is-driving-a2a-payments/

Juniper Research has, for two decades, provided market intelligence and advisory services to the global financial sector, retained by many of the world’s leading banks, intermediaries, and providers.