In digital finance, Account-to-Account (A2A) payments are revolutionising the industry with unmatched speed, convenience, and cost-efficiency. A2A payments are forecast to grow by a Compound Annual Growth Rate (CAGR) of 14% between 2023 and 2027, becoming an important alternative payment method.
Unlike traditional payment methods, A2A payments offer several distinct advantages that can transform how businesses and consumers handle transactions. Here are the key benefits of A2A payments:
1. Cost Efficiency: In regions like Europe, where interchange fees are regulated, A2A payments can offer even greater savings, making them an attractive option for businesses looking to reduce transaction costs.
2. Recurrence Flexibility: A2A payments can support recurring transactions, allowing businesses to automate payments and charge users at regular intervals. This flexibility is particularly beneficial for subscription-based services and other business models that rely on regular payments.
3. Enhanced Fraud Prevention and Reduced Chargebacks: Fraud and chargebacks are major concerns for businesses using traditional card payment systems. Credit card payments often have higher risks of fraud and chargebacks, which can be costly and operationally burdensome. A2A payments typically involve direct authorisation from the user's bank account, offering a more secure transaction process. This reduces the risk of fraudulent transactions and minimises the likelihood of chargebacks.
4. Faster Settlement: One of the standout features of A2A payments is their speed. Traditional card payments can take 1-2 days to process and are often disbursed on a weekly or monthly basis. In contrast, A2A payments can be settled almost instantly. Instant settlement means businesses can access their funds more quickly, improving cash flow and enabling faster reinvestment or operational adjustments.
While A2A payments have made significant strides in modernising how transactions are processed, there is still room for innovation. Discover the rise of A2A payments and its effects on the payments industry at the 18th NextGen Payments & RegTech Forum on 10-11 October 2024 at the Marriott Hotel in Athens, Greece.
This prestigious event will feature a comprehensive exploration of the A2A payments industry, including:
Panel Discussion titled: “The Rise of A2A Payments and Its Effects on the Payments Industry” with Nassos Pavlidis, Director of Transaction Banking Solutions at Alpha Bank, Andreas Mantis, Head of Business Development & Innovation at Interbanking Systems DIAS S.A., and Socrates Maanian, Head of Compliance at Worldline. This panel will discuss the key drivers of A2A payments and their broader impact on financial institutions.
Keynote Session titled: “The Next-Gen Payments Landscape: The Rise of Instant Payments, the Connection with A2A Payments, and How These Changes Affect Industry Dynamics” presented by Panagiotis Kriaris, Commercial Director - Business Development at Unzer.
Book now to enjoy a 10% discount before it expires! Contact QUBE Events at info@qubevents.com to claim the discount!
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