BASINGSTOKE, England— The transaction value of instant payments will exceed $27.7 trillion in 2026, up from $4.8 trillion in 2021, according to a new study from Juniper Research.
The research identified that this growth of over 470% will be driven by improved cost and transparency for instant payment schemes versus legacy payment schemes, such as ACH or CHAPS.
According to Juniper, instant payment schemes will increasingly disrupt both domestic and cross-border channels by offering payments that are faster to process, cheaper to both facilitate and initiate and easier to track and reconcile.
However, instant payments will take time to proliferate, given the fragmented nature of payments regulation within key markets like the U.S., and the uneven roles regulators have played internationally in payments innovation, Business Leader stated in its analysis.
An instant payments scheme is defined as any electronic retail payment system available on a 24/7/365 basis with transactions processed in under 10 seconds, with examples including Faster Payments in the U.K. and RTP (Real-time Payments) in the U.S., Business Leader noted.
The new research, “Instant Payments: B2B & Consumer Payments Analysis and Forecasts 2021-2026,” also found that over 70% of the overall transaction value of instant payments will be domestic in 2026, with instant payment schemes lacking cross-border interoperability.
A ‘Challenge,’ But…
“The research acknowledged joining instant domestic schemes together to power cross-border payments as challenging, despite ISO 20022 adoption. The report predicts that Central Bank Digital Currencies could have a significant role to play in harmonizing cross-border payments due to their clean slate nature, meaning they can be designed with cross-border use cases in mind from the start,” Business Leader explained.