A2A payments, which involve direct bank transfers without intermediaries, are experiencing global growth due to the increasing popularity of instant payments. A2A payments offer advantages such as instant settlements and lower transaction fees, making them an attractive option for merchants.
The report reveals that advancements in Open Banking have led to a significant rise in A2A solutions. Specifically, Variable Recurring Payments (VRPs) allow customers to link authorised payment providers to their bank accounts, enabling agreed-upon recurring payments to be made on their behalf within specified limits. As a result, both businesses and banks are increasingly drawn to VRPs for their flexibility and transparency when compared to traditional direct debit methods.
The research indicates that the introduction of instant payment systems is generating A2A opportunities, even in markets like the US which have been traditionally dominated by card payments. For instance, FedNow, the latest payment rail launched in 2023, boasts an average transaction fee of just 4 cents. In contrast, cards incur an average fee of 3.5% per transaction. Consequently, as adoption increases and use cases expand cost-effective A2A payments are poised to disrupt the card-centric landscape of the US market.
The study features an analysis and forecasts from over 22,000 data points across 60 countries over five years. It also includes a 'Competitor Leaderboard' and explores both current and future market opportunities.
Additionally, the report delves into regional trends, providing insights into how various geographic areas are expected to perform. Each section is meticulously designed to offer valuable information for stakeholders, from emerging startups to established industry leaders.
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