Singapore – The latest study from Capgemini Research Institute revealed that only 30% of banks in Asia Pacific are confident about having a strong tech infrastructure for instant payments, indicating their ‘’underpreparedness’ for the shift.
In the study, consumers in the region still prefer digital wallets as the primary mode of payment in e-commerce (77%) and in-store point-of-sales checkouts (66%).
Interestingly, instant payments are projected to make up 22% of all non-cash transactions worldwide by 2028. This signals a significant shift towards instant payment, according to the report.
It was further noted that non-cash transaction volumes increased to 1,411 billion in 2023 and are expected to reach 1,650 billion in 2024 and 2,838 billion by 2028.
In addition, account-to-account (A2A) instant payment solutions present a faster and more cost-effective way to pay, bypassing expensive card networks. This may result in traditional payment cards experiencing slower growth.
The firm also predicts that instant payments might counteract 15-25% of the expected increase in card transaction volumes.
With a 20% year-on-year (YoY) increase reported for 2024, Asia Pacific remains to be at the forefront of the global expansion of non-cash transactions.
