The value of instant payments, where transactions are completed within ten seconds, will reach $18 trillion in 2025. The new report from Juniper Research forecasts an increase of over 500 percent, up from $3 trillion in 2020.
“This represents 17 percent of all B2B and consumer digital money transfer and banking payments by value in 2025. The research found that Western Europe is driving innovation and will account for 38 percent of instant payment transaction value by 2025,” Juniper officials said in a release.
The report, titled Why Instant is Critical to Payments, identifies that success of domestic instant payment schemes will enable cross-border vendors to connect different schemes into cross-border networks, which will radically reduce the time, cost and frustration involved in the current cross-border payments ecosystem.
"This will also require established cross-border vendors to revisit their business models, as the fundamentals of the market change drastically," said Juniper.