- Only 5% of banks are prepared to lead the charge in instant payment acceleration.
- Account-to-Account (A2A) instant payments could reduce card transaction growth by 15-25%.
Singapore, September 18, 2024 – The Capgemini Research Institute’s World Payments Report 2025, released today, outlines a payments industry on the brink of transformation, driven by account-to-account (A2A) and instant payments. Now in its 20th edition, the report forecasts that instant payments will comprise 22% of all global non-cash transactions by 2028.
Since the launch of the inaugural World Payments Report in 2004, the payments landscape has undergone significant change. The adoption of digital technologies, such as digital wallets, peer-to-peer (P2P) transfers, and contactless payments, has grown rapidly. Regulatory measures have also played a pivotal role, fostering innovation while safeguarding consumer interests. As a result, the payment ecosystem is now more connected, streamlined, and secure than ever before.
Surge in Non-Cash Transactions, APAC Leads the Charge
The volume of non-cash transactions surged to 1,411 billion in 2023 and is projected to reach 1,650 billion by the end of 2024. With consumers increasingly seeking seamless payment experiences, non-cash transactions are expected to continue their upward trajectory, predicted to hit 2,838 billion by 2028.
Asia-Pacific (APAC) is emerging as the fastest-growing region for non-cash payments, with a 20% year-on-year growth in 2024, outpacing Europe (16%) and North America (6%). Globally, 77% of industry leaders identify the rise of e-commerce as the primary catalyst driving the shift towards non-cash payments.
A2A Payments Challenge Traditional Card Networks
Account-to-Account (A2A) instant payments offer a faster, more cost-effective alternative to traditional card networks. The report highlights how the growing popularity of A2A payments threatens to disrupt the dominance of payment cards, potentially reducing future card transaction growth by 15-25%. With interchange fees and interest charges being key revenue streams, financial institutions may perceive this shift as a significant risk, with billions in potential lost revenue.
Europe’s Wero Wallet, part of the European Payments Initiative, is expected to drive further adoption of A2A payments, with a 37% reduction in card transactions projected across Europe by 2027.
Jeroen Hölscher, Global Head of Payment Services at Capgemini, stated, “The rapid rise in non-cash transactions signals a turning point for banks and payment service providers. The success stories of Pix in Brazil and UPI in India demonstrate that public-private collaboration is key. Financial institutions must act now to meet growing demand for instant, innovative payment solutions.”
Financial Institutions Lagging Behind in Instant Payments Adoption
Two-thirds of payment executives view the expansion of instant payments as critical to increasing non-cash transactions. However, concerns around fraud and liquidity have slowed progress. Many banks have opted to receive but not send instant payments due to these risks. According to the report, only 25% of banks can currently receive instant payments, and 53% are fully capable of both sending and receiving them.
The report’s evaluation of banks’ preparedness for instant payment adoption reveals that just 5% of banks exhibit strong business and technological readiness to lead in this area. Among European banks, only 13% have a solid technology foundation for instant payments, particularly pressing given the October 2025 Instant Payment Regulation (IPR) deadline requiring all EU banks and payment service providers to offer full instant payment functionality.
For corporate treasury executives in sectors like insurance, retail, and automotive, inefficiencies in accounts payable and receivable processes pose significant challenges. Over 80% still rely on manual, paper-based processes for accounts reconciliation, with an estimated 7% of corporate revenue being tied up in the value chain. Instant payments and open finance solutions offer a pathway to real-time cash visibility and improved liquidity management.
Global Adoption of Open Finance in Early Stages
Regulations like Europe’s Payment Services Directive 2 (PSD2), which laid the foundation for open banking and the emerging open finance movement, have sped up the transformation process. Open finance, with its potential to empower consumers and businesses alike, is seen as a key driver in the adoption of instant payments. However, progress remains limited due to varying regulatory frameworks and market initiatives across regions. Countries like Australia, Brazil, India, and Singapore are leading the charge in promoting data-sharing frameworks that enhance accessibility for individuals and businesses.
According to the report, financial institutions are struggling to fully embrace open finance due to challenges such as non-standardised APIs, limited control over data usage, and a lack of incentives to share data with third parties. Only 17% of banks are at an advanced stage of piloting or launching open finance products, while 39% are in the planning stages. Another 23% of banks remain cautious, awaiting further regulatory clarity.
Report Methodology
The World Payments Report 2025 is based on insights from two primary research sources: the Global Corporate Survey 2024 and the Global Banking and Payments Executive Survey, both conducted in 2024. The research covers 15 markets including Australia, Brazil, Canada, France, Germany, Hong Kong, Italy, Saudi Arabia, Singapore, Spain, Sweden, the UAE, the UK, and the US. The corporate survey gathered responses from 600 corporate treasurers across industries such as insurance, retail, and automotive, exploring payment disruptions, satisfaction levels, and emerging services like instant payments and real-time treasury systems. The banking survey included interviews and surveys with over 200 senior payment executives from leading banks and financial institutions across the Americas, Europe, and Asia-Pacific.
