Cross-Border Payments to Go Instant: Juniper Research Predicts a Game-Changing Shift
The landscape of cross-border payments is on the brink of a monumental transformation, as revealed by Juniper Research. Their latest findings project that nearly half of all cross-border payments will be instant by the year 2028, according to The Fintech Times. This surge represents a significant leap from the 17% recorded in 2024, with a projected value of $16 trillion compared to $5 trillion.
Juniper Research’s comprehensive analysis indicates that this shift is propelled by the escalating adoption of digital payments, particularly in developing markets. The projected growth of Business-to-Business (B2B) payments stands at a remarkable 40% by 2028, soaring from $89 trillion in 2024. The research underscores the pivotal role of instant payments in revolutionizing B2B transactions, making cross-border trade both cheaper and more secure.
Michael Greenwood, the author of the report, emphasizes the transformative potential of adopting the ISO 20022 standard for instant payments’ financial messaging. This universal standard not only facilitates cheaper transactions but also lays the groundwork for third-party providers to develop value-added services, enhancing operational efficiencies for businesses. Greenwood highlights the adaptability of ISO 20022, which simplifies the development of AI-driven solutions, thus fostering innovation in payment systems.
Moreover, the research underscores the critical role of digital wallets, particularly in catering to the needs of small businesses in emerging markets. Access to banking services remains a challenge for many smaller enterprises, hindering their digital progression. To address this gap, B2B payment providers must prioritize integration with popular local digital wallets and mobile money services. This strategic approach not only enhances access to low-cost digital payments but also opens avenues for value-added services, including access to credit—a pressing need for small businesses.
Juniper Research’s insights paint a compelling picture of the evolving landscape of cross-border payments, underpinned by the rapid adoption of digital technologies. As instant payments become the norm, businesses across the globe stand to benefit from heightened efficiency, reduced costs, and enhanced accessibility—a testament to the transformative power of technological innovation in the realm of finance.