An instant payments scheme is any electronic retail payment system with transactions processed in under 10 seconds
Juniper Research has found that the transaction value of instant payments will exceed $27.7 trillion in 2026, up from $4.8 trillion in 2021.
According to the research, this growth of over 470% will be driven by enhanced cost and transparency for instant payment schemes versus legacy payment schemes, such as ACH or CHAPS.
The data predicts that instant payment schemes will significantly disrupt both domestic and cross-border channels. They are expected to offer payments that are faster to process, cheaper to both facilitate and initiate, and easier to track and reconcile.
Nevertheless, instant payments will take time to proliferate, given the fragmented nature of payments regulation within key markets like the US, and the uneven roles regulators have played globally in payments innovation.
The report predicts that CDBCs could have a significant role to play in harmonising cross-border payments due to their clean slate nature, meaning they can be designed with cross-border use cases in mind from the start. However, this will require prioritisation by regulators.
We’ve reported that Klarna enters another European country with its BNPL solution.