In the UK, consumers and businesses are beginning to embrace account-to-account (A2A). Open banking-facilitated A2A payments hit 13.3 million transactions in January 2024, used by one in seven consumers and one in five small businesses, a 55.8% year-on-year increase. According to Juniper Research, Account payments (A2A) will to $5.7 trillion by 2029; increasing by 230%.
A2A payments enable money to move directly between bank accounts via dedicated real-time payment networks, incurring no percentage-based fees. Speed is a key advantage, as A2A payments settle almost instantly, eliminating uncertainty and exchange-rate exposure, which is particularly beneficial for cross-border transactions and remittances.
Critical innovations driving change
The evolution of open banking is dovetailing with other payment innovations that are reshaping customer expectations and industry standards. Some of the innovations powering this transformation include real-time payment (RTP) systems, which have emerged worldwide to enable instant fund transfers across accounts. These networks allow consumers to send money across borders cost-effectively with instant settlement, benefiting remittances and e-commerce, while businesses gain improved liquidity and streamlined workflows.
Payments are also being woven into apps and digital experiences. By integrating payment functionality directly at the point of need – such as a shopping app, or ride-hailing service – embedded payments remove friction from checkout and improve user engagement. This can reduce cart abandonment and even raise average order values.
As digital payments grow, so does the emphasis on security. Artificial intelligence and machine learning are being deployed to detect and prevent fraud in real time. They can do this by efficiently analysing transaction patterns and user behaviour. In 2025, payments providers are leveraging AI to build advanced fraud detection systems and even biometric verification, such as fingerprint or face scan authentication to safeguard funds. These AI-driven tools are critical for maintaining trust in open banking and A2A transactions, helping to identify suspicious activity within milliseconds and block emerging threats before they cause harm.
How fintechs and challengers are seizing opportunities
Regulators in major markets are actively lowering barriers to entry – think Europe’s PSD3 rules – which will streamline licensing for open banking service providers and enable broader participation by new players. Likewise, the US Consumer Financial Protection Bureau’s open banking framework, which is set to take effect in 2026, opens the door for EU and UK fintechs to expand into the US market. This global regulatory push is intensifying competition, forcing incumbents stand out with better pricing and more innovative services.
It is also fostering a more interconnected ecosystem. As standards converge, an open banking solution proven in one country can be scaled more easily across borders. Enhanced collaboration among regulators is accelerating the cross-border scalability of open banking solutions, allowing challengers to think and build globally from day one.
Thanks to near-universal API availability, fintech developers now have a dependable platform to build on. Virtually all banks provide API access to account data and payments, and those APIs are highly reliable with 99.8% uptime in 2024. This gives innovators a rich, real-time data stream to fuel new services. Fintechs can harness AI-driven insights from customers’ transaction data, such as offering personalised budgeting advice, smarter lending decisions, or predictive cash flow tools by aggregating and analysing banking data with user consent at scale.
Advances in A2A tools and services
Open banking platforms can act as “data command centres,” allowing individuals to link multiple bank accounts in one place and manage their data-sharing consents with third-party services. These interfaces let users decide exactly where, how, and with whom their information is shared, often sending real-time alerts when an external service accesses their account data. This transparency helps build trust, crucial for driving adoption of open banking-powered products.
Security is also advancing alongside functionality. Many providers are enhancing account verification processes with device intelligence and machine learning to identify fraudulent activity before it can cause harm. Through single API integrations, these systems can confirm both user identity and device authenticity, detecting spoofed devices or synthetic identities early. For example, Mastercard’s Connect Plus platform combines consent management with real-time fraud prevention, while other financial technology firms are deploying similar AI-driven measures. Together, these innovations ensure that as open banking grows, it does so on a foundation of both user empowerment and security.
By capitalising on open APIs, vast data access, and collaborative innovation, fintechs can deliver faster, more affordable, and more personalised payment solutions. The evolution of open banking is a fundamental shift in how money moves, one that promises to make payments more efficient, inclusive, and intelligent. Those who embrace this shift stand to redefine the payments landscape to the benefit of businesses and consumers worldwide. Download the whitepaper below to find out more.
