/payments

News and resources on payments systems, innovations and initiatives worldwide.

European A2A payments set for take off - report

The European Payments Initiative’s Wero wallet is likely to accelerate adoption of A2A payments, with 37% of payment executives anticipating it will significantly offset card transaction growth by 2027, claims a Capgemini report.

  7 1 comment

European A2A payments set for take off - report

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

EPI (European Payments Initiative) - a Europe-wide bank-backed venture that was set up specifically to build a rival to Mastercard and Visa on the continent - began rolling out its Wero mobile-first wallet and instant account-to-account payments system over the summer.

In its 20th annual World Payments Report 2025, Capgemini predicts that the EPI and other A2A payment offerings such as Pix in Brazil and the UPI in India are set to shake up the payments landscape.

Non-cash transactions are forecast to reach 2,838 billion by 2028 - double that seen in 2023. However, cards will not be the only alternative taking advantage of the move from note and coins.

A2A payments could offset 15-25% of future card transaction volume growth, says the report, costing the industry billion in interchange fees and interest charges. The EPI's Wero wallet is likely to accelerate adoption of A2A payments across Europe.

The report suggest that banks need to jump on the instant payment adoption wave but are being deterred by concerns about fraud. With banks lacking robust defenses, and the potential for liquidity concerns, many opt to receive but not send instant payments. Today, only 25% of banks can receive instant payments and 53% are fully capable of sending and receiving them.

Based on a survey of executives, the report shows only five per cent of banks showcase high business and technology readiness to solidify their position as instant payment adoption leaders.

Even in Europe, just 13% can claim a strong technology foundation for instant payments, despite the October 2025 Instant Payment Regulation (IPR) deadline mandating all to offer full functionality.

Jeroen Hölscher, global head, payment services, Capgemini, says: “The continued surge in non-cash transactions is a watershed moment for banks and payment service providers. 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.”

Sponsored [On-Demand Webinar] Reaping the benefits of Hyper-Personalisation with AI and Application Modernisation

Comments: (1)

A Finextra member 

I used to think this way.... have thought this way for years......   and like Mobile payment growth, being confidently predicted by Juniper research for MANY years before take-off, I see the A2A boom taking much longer than predicted.....     the vast majority of transactions dont need to be A2A,   they need time for security checks to protect the payor and payee and consumers understand this.  Will i get a discount for immediate payment?  Will the discount be worth the risk?  time will tell -  hope to prompt some debate? 

[Webinar] PREDICT 2025: The Future of AI in the USFinextra Promoted[Webinar] PREDICT 2025: The Future of AI in the US