Consumer A2A Payments to Reach Value of $5.7 Trillion by 2029

A new study from Juniper Research has found that the value of global transactions via Account-to-Account payments (A2A) will rise from $1.7 trillion in 2024 to $5.7 trillion by 2029. The increase in those transactions would thus reach 230%.

A2A payments, which are bank-to-bank transfers that do not require intermediaries, will see increased use for high-value payments as consumer trust grows. It would be supported by anti-fraud solution development. This growing trust will enable A2A payments to increasingly transition from Peer-to-Peer (P2P) to retail payments; challenging traditional payment methods.

The irrevocable nature of A2A payments has caused friction for consumers and banks, especially as financial losses presented by bank transfer scams persist. However, developments in fraud detection and prevention, by accessing data through Open Banking standards, and analyzing transactions to detect fraudulent activity, have become a priority.

“The leading A2A Infrastructure vendors offer fraud-prevention solutions, complementing their A2A enablement. Challengers and upcoming vendors must offer fraud-prevention solutions alongside A2A payments; mitigating risks and providing a holistic offering. This is achievable for Open Banking-based A2A vendors; utilizing accessible banking data to predict and combat fraud,” remarked research author Matthew Purnell.

The report found that European A2A payments are gaining increased traction, bolstered by Wero, the A2A P2P solution from the European Payments Initiative. Wero is anticipated to generate interest and trust in A2A, especially in France and Germany where A2A use is lower than in other European markets, with increased P2P transactions incentivizing further use cases. This normalization of A2A through P2P means that A2A enablers should increase partnership efforts with banks and retailers; offering solutions commercially in response to consumer interest.