Consumers worldwide are set to generate some $1.7trn from Account-to-Account payments (A2A) in 2024 – rising to $5.7 trillion by 2029, an increase of 230% – as payments become more direct.
According to the latest payments data from Juniper Research, 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; 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.
An extract from Global A2A Payments Market: 2024-2029, is available as a free download.
Payment security advancements providing confidence
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, analysing transactions to detect fraudulent activity, have become a priority.
Research author Matthew Purnell explains: “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; utilising accessible banking data to predict and combat fraud.”
A2A normalised by P2P in Europe
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 other European markets, with increased P2P transactions incentivising further use cases.
This normalisation of A2A through P2P means that A2A enablers should increase partnership efforts with banks and retailers; offering solutions commercially in response to consumer interest.
