Instant payment transactions to surpass 376 billion globally by 2027 --Juniper Research

KUALA LUMPUR, Dec 5 (Bernama) -- Instant payment transactions are expected to exceed 376 billion globally by 2027 from 97 billion in 2022, according to a Juniper Research study.

It said that the 289 per cent growth from 2022 to 2027 would be driven by an increased roll-out of instant cross-border payment schemes in multiple countries, enabling businesses and consumers to benefit from greater speed and efficiency.

“This efficiency is gained by processing payments over instant payment rails, which provide time and cost savings while also offering greater transparency over transactions to stakeholders than traditional payment rails,” the market research firm said in a statement.

An instant payment is any payment outside a card network capable of receiving funds in 10 seconds or less.

The report forecast that cross-border transactions would grow at a faster rate than domestic transactions globally, rising from 631 million payments in 2022 to over six billion in 2027.

“The creation of instant payment schemes by international bodies, such as the European Union, and an increase of bilateral agreements between these bodies will be key drivers of growth over the next five years.

“These bodies will be essential in creating cross-border instant payment networks, as they have the capital and influence to connect disparate payment schemes across different geographical regions in order to maximise the value proposition of instant payments,” it said.

The report also predicted that the increased time and cost efficiencies and the improved cash flow management of using instant payments would be primary factors in influencing businesses to adopt.

“This will contribute to the total value of instant payment transactions rising from US$6 trillion this year to US$33 trillion in 2027,” it added. (US$1=RM4.37)

-- BERNAMA