Consumer A2A payments – $235 billion in transaction value in the UK by 2027. „Increasing adoption is reliant on PSPs (Payment Service Providers) onboarding A2A solutions.”

A new study from Juniper Research has found that the value of Account to Account (A2A) payments in the UK will increase 212% to $235 billion by 2027; up from $102 billion in 2024.

A2A payments (bank-to-bank transfers not requiring intermediaries) have gained traction in the UK, with A2A gaining an advantage over other payment methods due to instant settlement and cheaper transaction fees than cards. The difference in fees is driving interest from businesses to accept A2A payments, especially small and online businesses.

Reduced Fees Driving Business Interest in A2A

The report found that many UK businesses are seeing A2A as an attractive alternative to card payments, with merchant fees as low as 0.35% per transaction, compared to card-based fees averaging 4%. While A2A availability within eCommerce is still relatively uncommon, this is changing quickly, as merchants prioritise cost efficiency.

Research author Matthew Purnell remarked: “A2A represents a cost-efficient payment method for businesses, but increasing adoption is reliant on PSPs (Payment Service Providers) onboarding A2A solutions. A2A vendors must partner with PSPs to offer A2A solutions for online checkouts and promote A2A benefits, including fraud tools and instant refunds.”

In-store A2A Needs Incentives

Juniper Research also found that A2A is a fringe payment method for in-store purchases in the UK, with solutions not readily available. Whilst businesses clearly benefit from A2A, consumers lack perks offered from credit cards; reducing consideration for the few available A2A offerings. If in-store A2A is to succeed in the UK, vendors must partner with banks to offer incentives to consumers to usurp cards’ market share.

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An extract from the new report, UK A2A Payments Market: 2024-2029, is now available as a free download.