The European Payments Initiative (EPI) is expected to promote the adoption of account-to-account (A2A) payments, with a Capgemini report indicating that 37% of payment executives believe it will significantly counteract the growth of card transactions by 2027.
The EPI, a bank-backed initiative aimed at creating a competitive alternative to Mastercard and Visa in Europe, began launching its Wero mobile-oriented wallet and instant A2A payment system during the summer.
According to Capgemini’s 20th annual World Payments Report 2025, the EPI and other A2A payment solutions, such as Brazil’s Pix and India’s Unified Payments Interface (UPI), are poised to transform the payments landscape.
The report forecasts that non-cash transactions will soar to 2,838 billion by 2028, doubling the figures from 2023. However, cards won’t be the sole beneficiaries of the decline in cash usage.
A2A payments are projected to offset 15-25% of anticipated growth in card transaction volumes, potentially costing the industry billions in lost interchange fees and interest. The EPI’s Wero wallet is positioned to drive increased A2A payment adoption across Europe.
The report highlights that banks should embrace the wave of instant payment adoption, but fear of fraud is hindering progress. With many banks lacking strong fraud prevention measures and facing liquidity concerns, a significant number are choosing to accept instant payments without offering the option to send them. Currently, only 25% of banks can receive instant payments, while 53% are fully equipped to both send and receive them.
Surveys show that only 5% of banks exhibit a high level of readiness in both business and technology to lead in instant payment adoption. In Europe, merely 13% of banks possess a robust technological foundation for instant payments, even with the upcoming October 2025 Instant Payment Regulation (IPR) deadline requiring full functionality.
Jeroen Hölscher, global head of payment services at Capgemini, remarked: “The ongoing rise in non-cash transactions represents a pivotal change for banks and payment service providers. The data indicates an inevitable transition toward a future defined by instant and open payments.
“The advancements seen with Pix in Brazil and UPI in India demonstrate that success relies on collaboration between the private and public sectors. While some financial institutions may choose to upgrade their existing payment hubs or leverage shared bank infrastructures, the fact remains that consumers expect immediacy, and businesses are eager to invest in innovative solutions that address genuine operational challenges.”