Cross border innovations to drive instant payment transactions beyond 376 billion globally by 2027

By Onome Amuge

A new study from Juniper research has found that Instant payment transactions will surpass 376 billion globally by 2027, a 289 per cent growth from 97 billion recorded in 2022, buoyed by cross-border innovations.

The digital market research firm also predicts that an increased roll-out of instant cross-border payment schemes in multiple countries will drive the significant growth by enabling businesses and consumers to benefit from greater speed and efficiency.

Additionally, the report projects that the increased time and cost efficiencies, and the improved cash flow management of using instant payments will be primary factors in influencing businesses to adopt. This, it said, will contribute to the total value of instant payment transactions rising from $6 trillion in 2022, to $33 trillion in 2027.

According to Juniper, an instant payment is any payment outside of a card network that is capable of receiving funds in 10 seconds or under. It added that the efficiency recorded in instant payment transactions is gained by processing payments over instant payment rails, which provide time and cost savings, while also offering greater transparency over transactions to stakeholders compared to traditional payment rails.

Juniper further forecasts that cross-border transactions will grow at a faster rate compared to domestic transactions globally. The report  anticipates that cross-border transactions will rise from 631 million payments globally in 2022 to over six  billion in 2027.

The report noted that the creation of instant payment schemes by international bodies, such as the EU, and an increase of bilateral agreements between these bodies will be key drivers of growth over the next five years.

“These bodies will be essential in creating cross-border instant payment networks, as they have the capital and influence to connect disparate payment schemes across different geographical regions in order to maximise the value proposition of instant payments,” Juniper explained.

Assessing the impact of regulators in cross-border instant payments, the report recommends that regulators increase partnerships with international bodies to broaden payment schemes and expand access to instant payment services