The payments industry, which is set to be reimagined with account-to-account (A2A) and instant payment, has undergone a dramatic transformation over the past two decades, with the Asia-Pacific region leading the world adoption of non-cash transactions, according to a recent report.
Notably, digital technologies, such as wallets, peer-to-peer (P2P) payments and contactless payments, have become increasingly prevalent; regulations are playing a crucial role in driving innovation and ensuring consumer protection; and, as a result, the payments ecosystem is now more connected, harmonized, efficient and secure than ever before, finds the Capgemini Research Institute’s World Payments Report 2025.
Non-cash transaction volumes rose to 1,411 billion in 2023, the report notes, and are on track to reach 1,650 billion in 2024. With today’s customers preferring to embrace a frictionless payment experience, this trend is expected to continue as non-cash transactions are forecast to reach 2,838 billion by 2028.
Today, Asia-Pacific stands out, the report points out, as one of the fastest-growing regions for non-cash transactions with a 20% year-on-year increase in 2024, compared with Europe (16%) and North America (6%). Globally, most industry executives (77%) identify e-commerce growth as the critical driver accelerating the shift to non-cash transactions.
Traditional cards challenged by A2A
A2A instant payment solutions present a faster and cost-effective way to pay, bypassing expensive card networks. The rise in their popularity, according to the report, threatens to challenge the dominance of traditional payment cards, with estimates suggesting they could offset 15% to 25% of future card transaction volume growth.
With interchange fees and interest charges being a key profit source, financial institutions, the report argues, could view this as a significant risk with the potential to cost incumbents in the industry billions in lost revenue.
The European Payments Initiative’s Wero wallet is likely to accelerate adoption of A2A payments with 37% of European payment executives anticipating it will significantly offset card transaction growth across Europe by 2027.
“The continued surge in non-cash transactions is a watershed moment for banks and payment service providers,” says Jeroen Hölscher, Capgemini’s global head of payment services. “The data indicates an inevitable shift to a future of payments that is instant and open.
“The progress seen with Pix in Brazil and UPI in India has laid out a clear marker that success hinges on private-public sector collaboration. While some financial institutions may upgrade their existing payment hub or tap into shared bank infrastructure, the fact remains that consumers are demanding instantaneity, and corporates are hungry and willing to pay a premium for innovative solutions that solve real business problems.”
Financial institutions unprepared
Two-in-three payment executives, the report finds, view the expansion of instant payments as vital to driving non-cash transactions. Consequently, banks need to jump on the instant payment adoption wave; however, concerns about fraud – echoed by the majority of payment executives in the report – deter much progress.
With banks lacking robust defences, and the potential for liquidity concerns, many opt to receive but not send instant payments. Today, based on the report’s survey, only 25% of banks can receive instant payments and 53% are fully capable of sending and receiving them. As well, only 5% of banks showcase high business and technology readiness to solidify their position as instant payment adoption leaders.
Notably, only 13% of European banks can claim a strong technology foundation for instant payments. This is particularly pertinent for EU banks and payment service providers with the October 2025 Instant Payment Regulation deadline on the horizon, mandating all to offer full instant payment send and receive functionality.
For corporate treasury executives across insurance, retail and automotive sectors, inefficiencies across accounts payable and receivable processes create a significant cash flow headache. Over 80% still use manual, paper-based processes for accounts reconciliation, resulting in nearly 7% of corporate revenue being tied up within the value chain.
This potentially translates, the report highlights, to billions of dollars being stuck that could be used to fund business activities. Instant payments and open finance can present a new path forward for these enterprises by offering real-time cash visibility.
Open finance in early stages
A major catalyst for transformation, the report shares, has been Europe’s 2018 Payment Service Directive regulation. By pioneering open banking, it has paved the way for today’s growing open finance movement.
Open finance empowers consumers and businesses, the report emphasizes, catalyzing the adoption of instant payments. Despite its immense potential to reshape the financial landscape, progress is currently limited due to differences in regulatory frameworks and market initiatives.
Australia, Brazil, India and Singapore, the report notes, are some of the few countries leading initiatives to make data sharing more accessible and convenient for individuals and companies participating in an open financial system.
Financial institutions are finding it challenging to fully embrace open finance, according to the report, due to issues with non-standardized application programming interfaces, limited control over data use, and a lack of incentives to share data with third parties.
Only 17% of banks are at an advanced stage, piloting or launching open finance products, while 39% are in the planning phase, conducting impact assessments. Another 23% of banks remain hesitant as they await regulatory clarity.
