Unlocking the Potential of A2A Payments — Changing the Way We Pay and Get Paid
Setting the scene
Account-to-account (A2A) payments are gaining momentum across the globe. Internationally, A2A payments represented 8% of ecommerce transactions in 2023, and are expected to account for 17% of all ecommerce transactions by volume by 2028. This growth can be attributed to the increasing adoption of real-time payment (RTP) schemes and the success of product innovation leveraging the infrastructure (e.g., Open Banking). The appeal of safety, swiftness, and reduced costs fuels this trend.
Although not new, A2A payment methods have become more prolific as banks started to develop solutions to challenge international card brands. A catalyst for direct digital transactions between bank accounts, A2A payments can be found in the form of cheques, direct debit (ACH — Automated Clearing House), bank transfers (SEPA), and Open Banking payment solutions within apps and online services.
More so, the payment category sees Open Banking and real-time payments come together, with a particular focus on bank-led domestic payment solutions that innovate digital payments beyond fintech and traditional cards. For merchants, such bank developments in paytech offer an alternative to expensive transaction fees from card networks, whilst Open Banking helps expedite financial transactions and services. Within this context, understandably so, some of the most exhaustive A2A brands globally also apply real-time or instant payment technology.
Currently, A2A is most prevalent in smaller European countries and growing economies, with a regional comparison of A2A transactions placing Latin America at the centre of apps that enable A2A payments, whilst Europe and Asia–Pacific focus on bank transfers or direct debit solutions. In mature consumer markets with a deeply entrenched card culture such as Canada, Japan, the US, and the UK, A2A has had less of an impact, as the markets have established payment systems that drive loyalty with consumers due to successful card reward programmes. To draw away consumer expenditure from established incumbents including cards and the wallets carrying them, A2A providers might need to offer incentives.
Exploring the A2A payments space
Unlocking the Potential of A2A Payments Report 2024 — Changing the Way We Pay and Get Paid published by The Paypers aims to provide insights into the latest technologies and developments within the A2A ecosystem, featuring an up-to-date and comprehensive overview.
The report delves into the core of A2A payments, exploring their roots, different types, and accelerated evolution in the last few years, and elaborates on the intricacies of this payment method, aiming to unveil the essence of A2A payments. The experts featured distinguish between domestic schemes and the transformative landscape of Open Banking — alongside the challenges posed by interoperability –, highlighting the inherent benefits of A2A transactions. Whether readers want to be better equipped to navigate the complexities of the global financial sector or seek partnership opportunities in specific markets, this report aims to serve as an essential guide.
A glimpse into what to expect
The Unlocking the Potential of A2A Payments Report 2024 explores the core of A2A payments by examining their origins, complexities, and rapid evolution in recent years.
Some of the topics covered include:
· An analysis of the state of A2A payments that touches on their adoption, current trends, and their benefits for the ecommerce space;
· A series of contributions examining the benefits and challenges of A2A payments for individuals, PSPs, and merchants in general — and Europe in particular;
· A discussion on the role of A2A payments in revolutionising the Indian market;
· The potential of digital wallets to expand A2A payments in Europe;
· How A2A payments are expected to shape the future;
· Fraud challenges within the payment space — emphasising the benefits of data-enriched payments and the impact of authorised push payment (APP) fraud.
Original research by The Paypers
Renowned industry players, from merchants across different verticals to banks and payment service providers, acknowledge the need for a system that is independent of card schemes, and they are working on alternative infrastructures that would cut out transfer processing fees, speed up reconciliation, and offer enhanced customer services. To address this need, The Paypers has embarked on a journey to present an up-to-date overview of the payments ecosystem in the form of two infographics focused on two key areas:
· local and regional A2A schemes;
· Open Banking-based A2A payments and technology providers.
Without further ado, The Paypers invites you to delve into one of the hottest payments trends today! Download your free copy of the report HERE to learn more about the challenges and opportunities that come with this ever-expanding technology!
About Estera Sava
Estera Sava is a Content Editor at The Paypers, bringing her expertise in content creation and editorial processes to the Payments & Commerce team. With a focus on the ever-evolving ecommerce payments landscape, she is actively involved in various high-impact projects and industry reports. Through her proactive approach and dedication, Estera helps drive the success of The Paypers’ initiatives.
