Payments Industry Sees Rapid Transformation in 20 Years

Since the launch of the World Payments Report in 2004, the payments industry has seen remarkable growth, particularly with the rise of instant payments. Digital innovations like wallets, peer-to-peer (P2P) transfers, and contactless transactions have transformed the landscape. Additionally, regulatory changes have fostered instant payment solutions while enhancing consumer protection, resulting in a more interconnected, efficient, and secure payments ecosystem today.

Non-Cash Transactions Surge, APAC Leads the Charge

In 2023, non-cash transaction volumes surged to 1,411 billion, with projections indicating a rise to 1,650 billion in 2024. As customers increasingly demand seamless payment experiences, non-cash transactions are expected to reach a staggering 2,838 billion by 2028. Asia-Pacific (APAC) is at the forefront of this trend, with a 20% year-over-year increase in 2024. This growth outpaces Europe (16%) and North America (6%). Industry executives overwhelmingly (77%) cite e-commerce growth as a key driver behind this shift.

A2A Payments Challenge Traditional Card Schemes

Account-to-Account (A2A) instant payment solutions are emerging as strong competitors to traditional card networks. They offer a faster and more cost-effective alternative by avoiding pricey card networks. The rise of A2A payments threatens to challenge the dominance of traditional cards, with estimates suggesting they could absorb 15-25% of future card transaction volume growth. This shift poses a significant risk for financial institutions, potentially resulting in billions of dollars in lost revenue.

The European Payments Initiative’s Wero wallet is set to boost A2A adoption, with 37% of European payment executives anticipating it will significantly impact card transaction growth by 2027.

Financial Institutions Struggle with Instant Payments

Despite the clear benefits, two-thirds of payment executives view expanding instant payments as crucial for driving non-cash transactions. However, concerns about fraud and liquidity issues hinder progress. Currently, only 25% of banks can receive instant payments, and 53% can both send and receive them. According to Capgemini’s report, only 5% of banks exhibit high business and technology readiness for instant payments, and just 13% of European banks have a robust technology foundation in place. With the October 2025 Instant Payment Regulation (IPR) deadline approaching, EU banks and payment service providers must act quickly to meet regulatory requirements.

Open Finance: Early Days of a Promising Revolution

Since the launch of Europe’s 2018 Payment Services Directive (PSD2), the open finance movement has gained momentum. This regulatory shift has spurred greater accessibility and convenience in data sharing. Despite its potential, progress remains slow due to varying regulatory frameworks and market readiness. Countries like Australia, Brazil, India, and Singapore are leading the way in open finance initiatives.

Currently, 17% of banks are advancing in open finance, either piloting or launching related products. Meanwhile, 39% are in the planning stages, and 23% are hesitant, awaiting clearer regulations. As financial institutions navigate these challenges, open finance continues to promise a transformative impact on the financial landscape.

Report Methodology

The World Payments Report 2025 is based on insights from the global corporate survey 2024 and interviews with banking and payment executives conducted in 2024. It covers 15 markets and explores various aspects of payment disruptions, corporate banking expectations, and emerging payment technologies.