🫡 The Paypers Report: “Unlocking the potential of A2A Payments,” 2024

🫡 The Paypers Report: “Unlocking the potential of A2A Payments,” 2024

In recent years, account-to-account (A2A) payments have gained popularity. Experts recognize the need for a system that doesn't rely on card networks, but operates with alternative infrastructures, reducing processing fees, accelerating reconciliation, and generally anhances service quality.

Here are some key findings from the report:

🔠 Reminder: A2A refers to direct digital transactions between bank accounts, which can be represented as checks, direct debits (ACH - Automated Clearing House), bank transfers (SEPA), and Open Banking solutions (in online applications and services).

🔠 Another reminder: Traditional A2A payments include both push and pull transactions. Push payments are used to send funds from one account to another, while pull payments are used to receive funds (e.g., through direct debits).

🔠 History of the topic: Although A2A payment methods are not new, they have become more common as banks have decided to challenge international card brands.

🔠 International Perspective: A2A payments accounted for 8% of transactions in 2023, and they are expected to represent 17% of all e-commerce transactions by volume by 2028.

🔠 This growth can be attributed to the increasing implementation of real-time payment schemes (RtP) and the potential for cost reduction.

🔠 EPI Factor: Currently, A2A is more common in some European countries thanks to the European Payment Initiative, which includes 31 European banks and 2 PSP providers. EPI has rejected card schemes and uses account-to-account transfers.

🔠 Companies that stand out in the European A2A segment: iDeal (Netherlands), Swish (Sweden), Vipps (Norway), Payconiq (Luxembourg🇱🇺), Blik (Poland🇵🇱), myBank (Italy🇮🇹), and Bizum (Spain🇪🇸).

🔠 Regulation in Europe: The European Payments Council has established the SEPA SPAA scheme, which defines the rules, practices, and standards for data exchange and facilitates the initiation of payment operations in the context of additional services provided by asset holders to asset brokers. The policy aims to address issues related to updates to the Payment Services Directive (PSD2).

🔠 In mature consumer markets with a strong card culture, such as Canada🇨🇦, Japan🇯🇵, USA🇺🇸, A2A payments have not gained significant popularity, as consumer loyalty is secured there due to successful card reward programs.

🔠 In LATAM: Brazil🇧🇷 leads in A2A payments with its PIX system, which covers nearly 20% of A2A payments by total e-commerce transaction value in the region.

🔠 In India🇮🇳: The equivalent is the Unified Payments Interface (UPI). A2A payments are growing there as actively as in Europe and also receive state support. UPI handles over 75% of retail digital payments and has more than 350 million users. Through strategic partnerships, niPl aims to enable compatibility with UPI to simplify cross-border "peer-to-peer" (P2P) and "peer-to-merchant" (P2M) payments.

🔠 A2A Trends: From a functional standpoint, these include variable recurring payments (VRP), such as subscription payments and recurring purchases with varying basket sizes. From the perspective of target users, experts emphasize considering social and emotional factors of perception.

🔠 Fraud Opinions: Responsibility for ensuring adequate verification should fall on the receiving bank, not the sender.

Overall, the report offers valuable insights. You can download the full report here.

#news #information #global

🔄Alanbase: we create partnerships. We already work with BetBoom, Glory Partners, 4rabet, and others. 🔠 14-day free trial