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September 28, 2020

Instant payments to reach $18trl by 2025, as Europe leads innovation

By Mohamed Dabo

A new study from Juniper Research has found that the value of instant payments—where transactions are completed within ten seconds—will reach $18trl in 2025, up from $3trl in 2020; a growth of over 500%.

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 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
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This represents 17% of all B2B and consumer digital money transfer and banking payments by value in 2025.

The research found that West Europe is driving innovation and will account for 38% of instant payment transaction value by 2025.

The report identified that success of domestic instant payment schemes will enable cross-border vendors to connect different schemes into cross-border networks, which will radically reduce the time, cost and frustration involved in the current cross-border payments ecosystem.

However, this will also require established cross-border vendors to revisit their business models, as the fundamentals of the market change drastically.

US Lagging Behind in Instant Payments Adoption

The new research, Instant Payments: Domestic & Cross-border Analysis and Forecasts 2020-2025 Report, found that the US will trail in terms of instant payments adoption, with only an 8% share of global instant payment transaction values in 2025.

While RTP has been available in the US for some time, the fragmented nature of its financial system means that adoption has been slow to date.

Research author Nick Maynard explains:

“With the proposed FedNow service from the US Federal Reserve not coming into service until 2023/24, the US is rapidly falling behind in instant payments. Payments vendors must concentrate on creating innovative digital payments products to bridge this gap or be faced with an outdated system.”

 

B2B Instant Payments Dominating Transaction Values

The research found that B2B payments will dominate values in the instant payments market; accounting for 89% of global transaction values in 2025. While consumer payments are numerous, B2B payments have much higher average values.

The research identifies that instant payments adoption can be particularly transformative in B2B payments, where value-added capabilities, including automation and additional remittance data enabled by ISO 20022 can be valuable in tackling complex accounts payable processes.

Free Report
img

Prepare for changes in the Payments market

 The Payments market has seen drastic changes in the past few years, with this only expected to continue. What does your company need to do to prepare for what’s to come? GlobalData’s Payment Trends for 2022 report explores the key trends in technology, consumer habits, and regulations shaping the market. We also identify the leading companies in this changing market, giving you a competitive market outlook. This report covers the impact of:
  • ESG
  • E-commerce
  • Mobile payments
  • Alternative payment rails (Real-Time Payments, Blockchain, BNPL)
  • Fraud & Cybersecurity
  • Regulations
Download the report now to learn essential strategies to maximize your growth in the face of rapid change.
by GlobalData
Enter your details here to receive your free Report.

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