PAYMENT-LOOK BACK:

How the challenges of 2022 have helped A2A payments even more

A variety of favourable circumstances have helped account-to-account payments move closer to the mainstream in the last five years, but with a series of crises in 2022, and more on the way, people across sectors are understandably worried. When it comes to A2A payments, however, some of the issues the world is facing may actually help the transition.

1) Covid-19

The Covid-19 pandemic changed a lot of things, and payments were one of them. Between 2020 and 2021 consumers made fewer purchases, but those they did make were larger, and due to economic uncertainty they became more likely to choose debit over credit. As the world deals with the tail end of the pandemic the trend looks to continue, and A2A payments are proving to be the most effective debit payments system available.

2) Energy Crisis

Both companies and consumers are facing a raft of challenges as the energy crisis continues to bite. But by offering customers a new, real-time, secure and convenient way to pay, energy retailers can offer a lower cost-to-serve and remove the commission fees typically associated with payment transactions. In 2022, A2A payments offered the energy sector a compelling alternative to traditional pay-as-you-go or pay-on-bill arrangements.

3) Inflation

Inflation is having a devastating effect on SME cash flow, which is the number one cause of small businesses failing. In fact, a recent study shows that 88% of SMEs⁵ are experiencing an impact on their bottom line due to inflation. That’s why many of them are looking to A2A payments to bypass traditional card rails and interchange fees, and another reason A2A is the payment method of the moment in 2022.