BASINGSTOKE, England – (COMMERCIAL THREAD) – A new study from Juniper Research has found that the transaction value of instant payments will exceed $ 27.7 trillion in 2026, down from just $ 4.8 trillion in 2021. The study identified that this extraordinary growth in addition 470% will be driven by improved costs and transparency. for instant payment schemes versus legacy payment schemes, such as ACH or CHAPS.
Research predicts that instant payment systems will increasingly disrupt domestic and cross-border channels by offering payments that are faster to process, cheaper to facilitate and initiate, and easier to track and reconcile. However, instant payments will take time to proliferate, given the fragmented nature of payments regulation in key markets such as the United States, and the unequal roles played by regulators internationally in innovation. payments.
An instant payments system is any electronic payment system that is available 24/7, with transactions processed in less than 10 seconds, with examples such as Faster Payments in the UK and RTP (Real-time Payments) in the UK. United States.
For more information, download the free white paper: Instant Payments ~ Reshaping the Payments Ecosystem
Lack of interoperability limiting instant cross-border payments
The new research, Instant Payments: B2B & Consumer Payments Analysis and Forecasts 2021-2026, also found that more than 70% of the global instant payments transaction value will be domestic in 2026, instant payment systems lacking cross-border interoperability.
The research recognized that it was difficult to join instant national programs to fuel cross-border payments, despite the adoption of the ISO 20022 standard. The report predicts that CDBC (Central Bank Digital Currencies) could have an important role to play. in the harmonization of cross-border payments due to their clean slate nature, which means that they can be designed from the outset taking into account cross-border use cases. However, this will require prioritization from regulators.
Research co-author Damla Sat explained: ‘CDBCs can completely disrupt the cross-border payments market, but they must be designed specifically around this use case, or they will fall victim to the same challenges as traditional payment systems. ‘
Instant Payments Market Research: https://www.juniperresearch.com/researchstore/fintech-payments/instant-payments
Download the white paper: https://www.juniperresearch.com/document-library/white-papers/instant-payments-reshaping-payments-ecosystem
Juniper Research provides research and analysis services to the global high-tech communications industry; providing advice, analyst reports and industry commentary.