Juniper Research’s new study states that the instant payments market will grow by 161%, up from $22 trillion in 2024. According to the research, this growth will be driven by the increased popularity of A2A (Account‑to‑Account) wallets, such as iDEAL and Twint, along with the rising popularity of Open Banking.
When funds are received in 10 seconds or less with confirmation available in one minute, it’s called Instant payment. Open Banking payments and A2A both enable users to make payments directly from the bank, bypassing the card entirely which reduces costs for merchants and makes the entire process easier for the users.
Open Banking helps digital wallets leverage bank payments without requiring partnership with banks, and boost access significantly. Whereas, A2A are more used for more informal peer-to-peer transfers, often to family and friends.
As per the report, the ability to quickly and securely access bank accounts through Open Banking, alongside bank-backed A2A wallets, will increase consumer instant payment transaction volume from 252 billion in 2024, to over 600 billion by 2028.
The report also highlights the necessity for increased merchant acceptance of bank payments, both in physical stores and online, as a critical barrier to broader consumer adoption.
“To increase adoption, we recommend that merchants incentivise consumer use by offering purchase discounts when using bank-linked payments. By encouraging adoption, merchants will benefit from lower fees for each transaction in comparison to cards,” said report author Michael Greenwood.