Capgemini: A2A Payments Poised to Disrupt Card Networks

The financial services industry stands on the brink of a significant shift as account-to-account (A2A) payments gain momentum, threatening to disrupt the long-standing dominance of card networks. 

According to the World Payments Report 2025, published by the Capgemini Research Institute, A2A instant payments could offset between 15% and 25% of future card transaction volume growth, potentially costing incumbent financial institutions billions in lost revenue.

The Rise of Non-Cash Transactions

This seismic change comes as the payments landscape continues its rapid digital transformation, with non-cash transaction volumes projected to reach a staggering 2,838 billion by 2028. The report, now in its 20th edition, paints a picture of an industry grappling with evolving consumer preferences and technological advancements.

Jeroen Hölscher, Global Head of Payment Services at Capgemini, emphasises the urgency of the situation: “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.”

A2A Payments: A Challenger to Traditional Systems

A2A payments, which allow for direct transfers between bank accounts without intermediaries, offer a faster and more cost-effective alternative to traditional card networks. 

This efficiency is particularly attractive in an era where consumers and businesses alike prioritise speed and convenience in their financial transactions.

The rise of A2A payments is not occurring in isolation. It's part of a broader trend towards instant payments, which the report predicts will account for 22% of all non-cash transaction volumes globally by 2028. 

This growth is being driven by initiatives like the European Payments Initiative's Wero wallet, which 37% of European payment executives believe will significantly impact card transaction growth across the continent by 2027.

Recently, Visa announced the launch of its A2A payments offering. 

Banks Unprepared for Instant Payments Shift

However, the transition to this new paradigm is not without its challenges. The report reveals a stark unpreparedness among financial institutions for the instant payments movement. Only 5% of banks surveyed demonstrate high business and technology readiness to lead in instant payment adoption.

This lack of readiness is particularly concerning for EU banks and payment service providers (PSPs) facing the October 2025 deadline for the Instant Payment Regulation (IPR), which mandates full instant payment send and receive functionality.

Fraud concerns remain a significant hurdle, with many banks opting to receive but not send instant payments due to inadequate defences and potential liquidity issues. Currently, only 25% of banks can receive instant payments, while 53% are fully capable of both sending and receiving them.

Corporate Implications and Open Finance

The implications of this shift extend beyond the banking sector. Corporate treasurers across various industries are grappling with inefficiencies in accounts payable and receivable processes, resulting in substantial cash flow issues. 

Over 80% still rely on manual, paper-based processes for accounts reconciliation, tying up nearly 7% of corporate revenue within the value chain. This translates to billions of dollars that could otherwise be used to fund business activities.

Jeroen sees potential in the convergence of instant payments and open finance to address these challenges: “Instant payments and open finance can present a new path forward for these enterprises by offering real-time cash visibility.”

The open finance movement, catalysed by regulations like Europe's 2018 Payment Services Directive (PSD2), is seen as a key driver in the adoption of instant payments. However, progress in this area remains limited due to differences in regulatory frameworks and market initiatives. 

Countries like Australia, Brazil, India and Singapore are leading the charge in making data sharing more accessible and convenient for individuals and companies participating in an open financial system.

Despite its potential, financial institutions are struggling to fully embrace open finance. Issues such as non-standardised APIs, limited control over data use and a lack of incentives to share data with third parties are hampering progress. 

The report finds that 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% remain hesitant, awaiting regulatory clarity.

As the financial services industry navigates this period of transformation, the success of A2A and instant payments will likely hinge on collaboration between the private and public sectors. 

Jeroen concludes: “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. The time is now to put those foundations in place.”

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