A2A Payments Poised to Reshape Global Landscape

The rapid adoption of Account-to-Account (A2A) instant payments, will soon drive the global payments industry into a major transformation.

This is according to the Capgemini Research Institute’s World Payments Report 2025, released on Wednesday, September 11, 2024. 

The report, celebrating its 20th anniversary edition, forecasts that instant payments will account for 22% of all non-cash transaction volumes globally by 2028.

The payments industry has undergone a significant evolution since the inaugural report in 2004. Digital technologies, including wallets, peer-to-peer (P2P) payments, and contactless payments, have become increasingly widespread, while new regulations have fostered innovation and enhanced consumer protection. As a result, the payments ecosystem is now more interconnected, streamlined, efficient, and secure than ever before.

Non-cash transaction volumes reached 1.411 bn in 2023 and are projected to reach 1.650 bn in 2024. This trend, driven by consumer preference for frictionless payment experiences, is expected to continue, with non-cash transactions forecast to reach 2.838 bn by 2028.

Asia-Pacific (APAC) stands out as one of the fastest-growing regions for non-cash transactions, experiencing a 20% year-on-year (YoY) increase in 2024, compared to Europe (16%) and North America (6%). Globally, most industry executives (77%) attribute the shift to non-cash transactions to e-commerce growth.

A2A instant payment solutions offer a faster and more cost-effective way to pay, circumventing expensive card networks. The report suggests that the rise in popularity of A2A payments poses a significant threat to the dominance of traditional payment cards, with estimates suggesting they could offset 15-25% of future card transaction volume growth. This could result in billions of dollars in lost revenue for financial institutions, that rely heavily on interchange fees and interest charges.

The European Payments Initiative’s Wero wallet is expected to accelerate the adoption of A2A payments, with a predicted 37% reduction in card transactions across Europe by 2027.

“The continued surge in non-cash transactions marks a pivotal moment for banks and payment service providers,” said Jeroen Hölscher, Global Head of Payment Services at Capgemini.

“The data clearly indicates an inevitable shift toward a future of instant and open payments.” 

Hölscher added,“The success of Pix in Brazil and UPI in India demonstrates that private-public sector collaboration is essential. While some financial institutions may choose to upgrade their existing payment hub or leverage shared bank infrastructure, the reality is that consumers demand instantaneity, and corporates are willing to pay a premium for innovative solutions that address real business challenges. The time to act is now.”

Hossam Seifeldin, CEO of Capgemini Egypt, highlighted Egypt’s progress toward a cashless and instant payment future.

“Egypt recorded 39 million transactions in 2023, a promising start,” Seifeldin said.

“While Egyptian financial institutions face similar challenges to their global counterparts, the Central Bank of Egypt’s Instant Payment Network demonstrates a strong commitment to overcoming these obstacles. With continued growth and consumer interest, Egypt is poised to foster financial innovation and accessibility for its population.”