Digital payments have been on an ascendant trajectory for many years now, propelled by increased consumer tech-savviness and the multitude of device types and technologies employed for payments. Midway to 2025 and looking to the future, payments are set to become increasingly more digital, with A2A taking centre stage in multiple discussions and developments of the fintech industry.
In 2024, here at The Paypers, we have taken the pulse of this space, and having noticed a dire need for clarity on what the payment method entails and what the space has to offer for all participants of the ecosystem, we launched the first edition of the ‘Unlocking the Potential of A2A Payments Report – Changing the Way We Pay And Get Paid’.
Featuring the expertise of relevant industry professionals, the report looked closely at how A2A payments first originated and evolved, shedding light not only on their benefits for merchants, payment services providers (PSPs), and consumers but also on the complexities associated with them, from interoperability to fraud-related concerns. Alongside insights from top experts, the report also featured in-house research in the form of an infographic, focused on two main areas: local and regional A2A schemes and Open Banking-based A2A payments and technology providers.
Now, almost one year after the report’s release, it’s the perfect time to ascertain how the A2A payment industry is poised to evolve in 2025 and beyond. To do so, The Paypers has invited industry experts whose insights made last year’s edition of our report possible, asking them three key questions:
What major trend will shape the A2A payments space in 2025?
What challenges will likely impact A2A payments adoption and development in 2025?
Which regulatory changes are expected to further influence the real-time payments sector?
Read on to find out what they have to say.
Tarik Zerkti, CEO, PRETA: In 2025, the path toward A2A payments will be reinforced by a combination of factors, including regulatory momentum, economic pressures, and evolving consumer expectations for faster, cheaper, and more secure payment experiences. According to a study by ACI Worldwide, global real-time payment (RTP) volumes reached 266 billion in 2023 and are forecast to exceed 575 billion by 2028. The awareness of A2A payments among merchants, corporates, and end-users will continue to grow, and the complementarity with existing solutions like cards or wallets will become increasingly evident.
Mark Beresford, Director, Edgar, Dunn & Company: The major trend that will significantly shape the A2A payments space in 2025 is the continued and accelerating global expansion of RTP infrastructure, increasingly driven by Open Banking initiatives, regulatory mandates, and making RTP systems interoperable. Initially popular for peer-to-peer (P2P) transfers, A2A payments are increasingly being adopted for consumer-to-business (C2B) transactions, including ecommerce checkouts, bill payments (e.g., utilities, rent, tax collection, payment of fines), and subscription services. Merchant businesses are drawn to A2A for its lower transaction fees compared to cards and the speed of settlement. However, the economic benefits vary according to the average transaction value and the number of transactions.
Ritesh Shukla, MD & CEO, NPCI International: A2A payments are being reshaped by growing consumer demand for seamless, intuitive transaction experiences across borders and payment platforms. As digital commerce becomes increasingly global, users expect RTPs to deliver the same ease, UI/UX consistency, and trust they experience domestically. Traditional A2A payments are also evolving into account-based merchant payments, expanding their use cases. Simultaneously, QR code-based acceptance is scaling rapidly. In India, deployment of over 600 million UPI QR codes has been a key factor in the rise of digital payments. Globally, QR payments are projected to exceed USD 3 trillion in 2025, with strong adoption across Asia, Africa, Latin America, the Middle East, and growing uptake in North America and Europe. Its low-cost, device-agnostic nature makes QR a key driver of merchant acceptance and inclusion. Meanwhile, in many regions, low credit card penetration continues to limit access to digital payments. A2A payment systems are helping bridge this gap, offering more inclusive, cost-effective, and accessible alternatives to card-based infrastructure.
Oscar Berglund, Business Development, Europe, Trustly: Merchants are looking beyond the generic concept of an A2A payment and instead want to have a fully working A2A-based retail payment solution. We need to remember that card payments make up the merchant’s benchmark, and they support cross-border payments, come with refund functionality, have full reporting and reconciliation, offer settlements in various currencies, and more. Merchants are realising that for A2A payments to work in the checkout, they need to be as good or better than cards across all these parameters.
Martín Azcue, New Projects & Innovation Lead, Bizum: We are witnessing the increasing prevalence of SEPA instant transfers in P2P payments. Their implementation is a trend already noted and promoted by the European Central Bank, which estimates that by 2030 60% of ecommerce purchases and 20% of face-to-face purchases will be made employing instant transfers. This trend is already a reality in Spain, where instant transfers were projected to account for more than half of total transfers (55.6%) in 2024, while in the euro area the percentage was only 19.7%. In addition to the weight and popularisation of solutions such as Bizum, the new European regulation on immediate transfers, which requires all banks to allow these transactions to be sent instantly from 2025, will help boost this payment type.
Cross-border A2A payments are also on the table. Interoperability between European payment solutions that lead in their markets is crucial for a sovereign, efficient, and unified European payments ecosystem. The European Payments Alliance (EuroPA) initiative, promoted by Bizum, BANCOMAT Pay, and MB WAY, has been working in this direction for almost two years now, and in the coming months it will gradually enable more than 50 million users to make cross-border payments between Spain, Italy, Portugal, and Andorra. More and more solutions from other countries are becoming interested in this initiative, which aims to be extended to all types of payments, such as purchases in shops (electronic and physical).
Clement Jozwiak, Product Officer, Worldline Financial Services: I think the EU's Instant Payments Regulation (IPR) will be a major force reshaping A2A payments in 2025 and beyond. The implementation of the IPR has been underway since earlier this year, with full adoption expected by the end of 2025, and we're already witnessing the initial market adaptations to these requirements. As implementation progresses, I expect IPR will transform European payment infrastructures, establishing a foundation for the A2A ecosystem, ultimately making A2A payments more accessible and reliable throughout the European market.
Francesco Burelli, Partner, Arkwright Consulting: A2A payments – synonymous with RTPs, otherwise called immediate payment services (IPS) – are a type of payment infrastructure that continues to be rolled out globally, and their functionality and use case will keep expanding. I would expect cross-border interlinking to be the major trend that will continue to develop at a regional level. Recurring payments and variable recurring payments are examples of use cases that will remain in the focus of expanding functionalities.
Ludovic Francesconi, Strategy Vice President, EPI Company: The truly transformative change is the ability to use A2A with a good UX for different kinds of payment use cases, like subscriptions or payment at shipping or delivery.
Mark Beresford, Director, Edgar, Dunn & Company: A2A payments, especially real-time transfers, are often immediate and irrevocable. Once the funds leave the payer's account, it can be very difficult, if not impossible, to retrieve them, even in cases of fraud or if the goods/services are not received as expected. Unlike card payments, A2A systems generally lack a chargeback mechanism. This, along with the increasing problem of authorised push payment (APP) fraud, is the major challenge that will hold back the adoption of A2A payments in 2025.
Clement Jozwiak, Product Officer, Worldline Financial Services: Two primary challenges will likely affect A2A payments adoption in 2025. First, UX remains a critical factor – consumers increasingly expect payment journeys that are both intuitive and efficient, particularly when comparing A2A solutions with familiar, established payment methods. Second, the reliability of banking APIs continues to present some challenges, such as variation in API performance, availability, and standardisation across financial institutions. These technical challenges directly impact transaction success rates and consumer confidence. As instant payment volumes grow throughout 2025, addressing these issues while maintaining an optimal UX will be essential for successful A2A implementation and adoption in the European payments ecosystem.
Ritesh Shukla, MD & CEO, NPCI International: As A2A payments continue to grow in popularity, several key factors will be essential in sustaining this momentum. Raising consumer awareness about secure usage, effective dispute resolution, and fraud prevention will be vital to building trust and encouraging wider adoption, particularly among those new to digital payments. With proper support, many small merchants are well-positioned to make a confident shift to digital transactions. As more providers enter the market, maintaining consistency in user interfaces and transparency in transaction costs will be key to delivering seamless, intuitive payment experiences, both domestically and across borders.
Tarik Zerkti, CEO, PRETA: One of the main challenges is the fragmentation of proprietary solutions. Although most transactions remain domestic, merchants and corporates are looking for A2A solutions that can reach their customers across the EU. We may see further moves towards interoperability or integration among existing solutions in 2025. In the context of Open Banking, we are likely to face known issues such as complex UX/UI, the lack of payment certainty, and the relative reliability of APIs.
Oscar Berglund, Business Development, Europe, Trustly: The key challenge remains the quality of the bank-provided APIs used by A2A-based payments companies to initiate payments; some banks and countries are state-of-the-art, while others remain behind. We see a couple of countries catching up, though, and are excited about launching them as new markets.
Martín Azcue, New Projects & Innovation Lead, Bizum: For an initiative such as EuroPA, which is committed to making the most of existing infrastructures and interconnection between homologous solutions, the challenge of interconnection does not lie in finding a payment instrument that solves the problem of sending money to other countries. Rather, it is defining how this operation works, so it remains as simple as it is today. And this, of course, while ensuring compliance with European payment and data protection regulations. There is also the challenge of adoption by users and merchants. This is among the strengths of our commitment to the interconnection of existing solutions favoured for making payments in their countries. These solutions are used by millions of users, who will not have to change their habits to make cross-border payments.
Francesco Burelli, Partner, Arkwright Consulting: The continued growth of fraud and cybercrime targeting A2A rails remains a limiting factor, constraining the development and broader adoption of A2A payments. Domestic A2A systems still operate in silos with limited interoperability. Despite ongoing progress, the lack of harmonisation across countries and regions – such as differences in compliance standards, transaction limits, and APIs – poses a significant barrier. Moreover, behavioural inertia, particularly in markets where A2A does not address a clear or pressing customer need, further slows retail adoption.
Ludovic Francesconi, Strategy Vice President, EPI Company: Consumer education on A2A is truly important, as they don't always have a clear understanding of the differences from their usual payment means. Besides, it’s key for future adoption to make sure that A2A can be integrated into digital wallets as any other payment means.
Ritesh Shukla, MD & CEO, NPCI International: Regulatory support continues to be a key enabler of RTP growth worldwide. Increasingly, regulators are advancing this space not only through domestic policy but also via cross-border collaborations that promote interoperability, consumer protection, and ecosystem participation. This broader alignment mirrors developments in India, where a supportive regulatory approach has played a vital role in building secure and scalable payment infrastructure. As A2A payments expand across markets, continued regulatory cooperation will be essential to enabling frictionless, resilient, and interconnected payment systems at scale.
Mark Beresford, Director, Edgar, Dunn & Company: Governments and regulators recognise the need for enhanced consumer (and business) protection in the A2A space. The EU's IPR, for example, mandates measures to combat fraud and increase trust. Although it has taken months, if not years, to achieve a harmonised policy, it is expected to take a considerable amount of time until all European banks and PSPs are fully harmonised. Meanwhile, the customer experience at the checkout is often inconsistent, confusing, and far from smooth, which in turn will also hold back the adoption of A2A payments.
Tarik Zerkti, CEO, PRETA: The IPR will act as a major driver for growth, requiring PSPs to adopt SCT instant payments and align costs with standard SCT transactions. Additionally, the eIDAS 2.0 regulation – aiming to provide all EU citizens, residents, and businesses with a secure and standardised digital identity solution – will play a significant role in the coming years. Beyond regulatory changes, non-regulatory initiatives like SEPA Request-to-Pay (SRTP) and SEPA Payment Account Access (SPAA) will also enable new use cases for instant payments in Europe.
Oscar Berglund, Business Development, Europe, Trustly: The key regulatory development in the EU for 2025 is the likely finalisation (towards the end of the year) of the Payment Services Regulation (PSR) by the European co-legislators. The Open Banking regulation, which was introduced with PSD2, is being evolved further with the PSR to benefit European consumers and merchants alike. In the UK, the most interesting development is clearly the development of commercial variable recurring payments (CVRPs), and we will hopefully take this live for low-risk use cases towards the end of 2025.
Clement Jozwiak, Product Officer, Worldline Financial Services: Looking beyond the IPR implementation, several other regulatory and technological developments will shape the RTPs landscape in 2025. The One Leg Out (OLO) regulation represents an important advancement for cross-border payments, enabling improved international connectivity with non-SEPA countries while standardising processing requirements. In parallel, the potential issuance of the digital euro as a central bank digital currency (CBDC) could alter payment infrastructures if introduced as planned. The European market is also experiencing increasing fragmentation in A2A wallet solutions, highlighting the critical need for interoperability standards to ensure seamless payment experiences across different platforms and borders. Additionally, the ongoing development of Payment Services Directive 3 (PSD3) will bring important changes to authentication requirements and Open Banking frameworks, further influencing how PSPs operate. These complementary developments collectively point toward a more integrated yet complex payments ecosystem requiring careful navigation by all market participants.
Martín Azcue, New Projects & Innovation Lead, Bizum: The regulatory changes currently underway in Europe must provide a level playing field for all payment instruments in order to be able to compete without more restrictive requirements for equivalent service offerings (i.e., ensure that the current regulatory asymmetries do not exist). In addition, we believe that the rules need to allow for greater collaboration and exchange of information to identify users who have engaged in scams and/or confirmed fraud. Finally, regarding the issuance of the digital euro, we hope that the legislation will establish the necessary safeguards to prevent it from entering into direct competition with European mobile payment solutions. These may favour the distribution of the digital euro as a more efficient way to take advantage of the existing infrastructure and resolve the explanation and coexistence of both payment methods for users.
Francesco Burelli, Partner, Arkwright Consulting: In Europe, I would mention the IPR mandating PSPs to offer instant payment services. Moreover, non-bank PSPs meeting specific criteria will gain access to the European Central Bank's TARGET services, including TIPS (TARGET Instant Payment Settlement). Other regulatory changes set to impact RTPs are the PSD3 and PSR, which are expected to be finalised in 2026.
However, the continued growth of fraud and cybercrime targeting A2A rails is expected to remain a limiting factor, impacting both the development and wider adoption of A2A payments.
Ludovic Francesconi, Strategy Vice President, EPI Company: As the European IPR progressively helps increase usage of RTPs, there are still some evolutions to come, such as the Verification of Payee, which will start running this summer and will greatly impact every party involved in RTPs.
As you read this, we at The Paypers are already at work on the second edition of the A2A Payments Report, which will be launched this summer. If you’re a solution or technology provider willing to share your expertise with other professionals in this space, we’d love to hear from you! Reach out to sales@thepaypers.com
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