The instant payments market is expected to grow by 500% to reach $18trn by 2025 and will account for 17% of all B2B and consumer digital money transfers and payments.
In the new study from Juniper Research, it claims the market is being driven by Western Europe, which will account for 38% of instant payment transaction value by 2025. Alternatively, the US is expected to trail behind others, with only an 8% share of global instant payment transaction values expected in 2025.
The company claims instant payments, which is where a transaction is completed within ten seconds, is worth $3trn in 2020.
Furthermore, the research found that B2B payments will dominate values in the instant payments market, accounting for 89% of global transaction values in 2025. It stated that while consumer payments are more common, they are much lower than B2B transactions.
Research author Nick Maynard said, “With the proposed FedNow service from the US Federal Reserve not coming into service until 2023/24, the US is rapidly falling behind in instant payments. Payments vendors must concentrate on creating innovative digital payments products to bridge this gap or be faced with an outdated system.”
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