A2A transfers shaping global commerce: the pioneers and the wannabes

Account-to-account (A2A) payments are reshaping the way money moves – and they are doing it fast. From daily consumer purchases to large-scale business operations, A2A is surging as the go-to payment method, offering speed, affordability, and accessibility like never before.?

Emerging markets, in particular, are seeing rapid adoption of A2A transfers, fueled by real-time payment infrastructures and a shift toward digital-first financial ecosystems, as shown in the EBANX Beyond Borders study.?

In this edition of the newsletter, we'll look at the impact pioneering systems such as India’s Unified Payments Interface (UPI) and Brazil’s Pix, alongside rising local solutions such as Egypt’s InstaPay and South Africa’s PayShap, are driving in these markets by converging payments and technology to enable financial empowerment.?

India's UPI: dominance in digital transactions

Since launching in 2016, India's UPI has revolutionized the country's digital payments scene and set a precedent for similar systems worldwide. By simplifying peer-to-peer (P2P) and merchant transactions, UPI has played a critical role in India’s transition from a cash-dominated to a digital-first economy.

According to the Reserve Bank of India (RBI)'s Cash Usage Indicator (CUI), cash usage in the country dropped from over 80% in 2021 to around 52% in 2024. Meanwhile, UPI's share of person-to-business (P2B) payments has skyrocketed, now representing about 62% of total transactions and 26% of their value, growing twice as fast as person-to-person (P2P) transactions, according to the RBI.?

Not only does UPI support transactions through QR codes, enabling customers to scan and initiate transfers seamlessly, but it also integrates with a wide range of digital wallets, third-party apps, and banks, including WhatsApp, Google Pay, PhonePe, and Paytm, allowing payments through any compatible platform.

UPI's drive toward digitizing the Indian economy has had a profound impact on digital commerce. According to?Payments and Commerce Market Intelligence (PCMI), UPI already accounts for 55% of digital commerce in India, underscoring its dominance and transformative role in the industry. By 2027, it will reach over USD 150 billion in online transactions.

“UPI has managed to bring a large segment of the young population, who previously weren’t shopping online, into the digital economy. It has become their gateway to e-commerce,” says Rashmi Satpute, Country Director for India at EBANX.

Besides, UPI's influence extends beyond India, shaping payment landscapes in other South Asian countries and driving the adoption of QR code transactions. Nations like Bangladesh, Nepal, and Sri Lanka are using it as a model for their own instant payment systems.

Brazil's Pix: a star is born in Latin America

Like UPI, Brazil’s Pix, launched by the Central Bank in 2020, has quickly become the country’s leading payment method and is inspiring similar initiatives across Latin America.?

Brazil's Central Bank's data shows that 155 million Brazilians currently use Pix, while the survey "Brazilians and Their Relationship with Money" found that Pix is the most frequently used payment method for 46% of respondents, and the preferred payment method as the value of the financial transaction increases.

Consumers' widespread adoption of Pix stems from several key factors. It is safe, secure, practical, available 24/7, easy to use, and free of charge for consumers. For merchants, Pix charges low fees compared to cards or other payment methods, and it has also enhanced business cash flow management.?

This combination of benefits for consumers and merchants has been crucial for its rapid adoption across Brazil, from P2P transfers migrating to other types of transactions. This shift is already affecting digital commerce transactions. According to PCMI data analyzed by EBANX, Pix is set to surpass credit cards as the most widely used payment method in Brazil for e-commerce by 2025.?

EBANX's Beyond Borders study reveals that merchants accepting Pix in Brazil see increased revenue and customer base by reaching new consumer segments. Adding Pix as a payment option led to a 16% revenue increase and a 25% increase in customers for EBANX merchants across various sectors, including SaaS, online retail, and travel, all within just six months.

Egypt's InstaPay: a mobile-first solution rising in influence

Launched by the Central Bank of Egypt in March 2022, InstaPay is a major step forward for the country's digital payment landscape. By November 2023, the platform had already reached 6.2 million registered users, according to Egyptian financial authorities.

InstaPay simplifies transactions by connecting digital wallets and bank accounts in a single system. Users need at least one bank account or prepaid/debit card to register, promoting financial inclusion and expanding access to digital payments nationwide.?

While initially designed for P2P transactions, InstaPay's success in facilitating seamless peer-to-peer (P2P) transactions has positioned it as a pivotal player in Egypt's digital payment evolution. With the highly anticipated launch of its business-to-business (P2B) phase, InstaPay is set to unlock significant potential for commercial transactions across the nation. “This payment method has significant promise, especially due to its very low processing fees compared to traditional options like credit cards,” explains Karim Elbaz, Director for MENA at EBANX.

Although a dedicated business version of InstaPay for e-commerce integration isn't yet available, it already holds an estimated 1% share of Egypt's digital commerce, according to PCMI, and its adoption is expected to continue growing. InstaPay exemplifies the typical evolution of digital payments: starting with P2P, then expanding into P2B, and finally integrating into e-commerce as a mainstream A2A method.

“Instant payment is emerging and trending [in Egypt], and it’s poised to become even more impactful in the coming years, mirroring what happened in India with UPI.”? Karim Elbaz, Director for MENA at EBANX

South Africa's PayShap: building trust in digital payments

In 2023, a group of South African payment providers and banks launched PayShap, a real-time payment system designed to boost financial inclusion and build consumer trust in electronic payments. This initiative aligns with the South African Reserve Bank's strategy to accelerate digital transaction adoption.

PayShap is South Africa's second real-time payment system, complementing Real-Time Clearing (RTC), which was introduced in 2006 primarily for large interbank transactions.

According to BankservAfrica, PayShap processed over 18 million transactions in its first year, with a total value exceeding USD 588 million. The average transaction size of around USD 32 suggests it's being used for everyday, smaller payments, supporting the growth of digital micropayments, as highlighted by an AfricaNenda Foundation study.?

Additionally, regulators behind PayShap are working to expand the number of banks participating in the system and have announced plans to introduce new services to include local businesses in the new rail.

The bottom line

The rapid evolution of A2A payments shown in these examples reflects a global shift in commerce driven by the need for speed, cost efficiency, and financial inclusion. As businesses and consumers embrace real-time, mobile-first payment solutions, A2A isn't just an alternative anymore – it's becoming the standard for seamless, efficient, and inclusive financial interactions worldwide.

“A2A transfers are becoming more present in people’s minds. Even if they don’t have a good UX, people feel secure—there are no declines, for instance, and there is no physical card to steal. Most bank apps are accessed through biometrics, so people feel that they are very secure,” concludes Lindsay Lehr, Managing Director at PCMI.?

That's all folks!?

[If you're hooked by the data in this edition, try the Beyond Borders study: tons of data and insights into how people and businesses make payments in emerging markets.]