The value of instant payments is expected to grow by 470% by 2026, with it expected to exceed $27.7trn.
Value of instant payments is predicted to reach $4.8trn in 2021, according to research from Juniper Research.
This sharp rise in usage is projected to be caused by the reduced costs of instant payment schemes and the greater transparency they are offering compared to ACH or CHAPS payment methods.
Instant payment schemes are any electronic retail payment systems that is available on a 24/7/365 basis where transactions are processed within ten seconds.
The report also predicts instant payment schemes will increasingly disrupt both domestic and cross-border channels by offering payments that are quicker to process, cheaper to facilitate, and easier to track and reconcile.
Despite the strengths of the technology, Juniper expects it will take time to proliferate due to tough payments regulation within markets.
Due to the lack of cross-border interoperability, more than 70% of instant payment transaction value in 2026 will be domestic.
Copyright © 2021 FinTech Global
