Volume of instant payments to exceed 235 billion by 2027

Volume of instant payments to exceed 235 billion by 2027

Global instant payment transactions are expected to exceed 235 billion by 2027, up from 74 billion in 2023, according to Juniper Research.

The 218% growth is expected to be driven by lower merchant acceptance costs when compared to traditional card schemes.

Juniper claims these lower costs are increasingly important as merchants are looking to reduce costs and protect margins through the global economic downturn.

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

Following the sharp growth of the space, Juniper expects 70% of consumer payments to be instant by 2027, a sharp rise from just over 30% in 2023.

China is expected to be the largest market for instant payments by transaction volume, led by the popularity of WeChat Pay and AliPay. It will be followed by India and the US.

Report author Michael Greenwood said, “Payment processors, who provide payments acceptance for merchants, should look to offer instant payments integration via a single API. This will allow merchants to accept instant payments at checkout alongside existing payment methods, such as cards and wallets, without needing to undertake a separate, costly and time-consuming integration process.”

The findings come from Juniper’s latest report, ‘Instant Payments: Future Opportunities, Regional Analysis & Market Forecasts 2022-2027.’

Juniper recommends that instant payment vendors focus on building value-added services within their offering. This includes real-time fraud prevention or automation of payments for B2B use cases.

Juniper has released a number of reports this year. It’s most recently claimed the total number of digital identity apps in use will exceed 4.1 billion globally by 2027, nearly doubling from 2.3 billion in 2023.

Another of its reports found that global revenue from embedded payments for embedded finance vendors will reach $59bn in 2027, rising from $32bn in 2023.

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