GridGain for Payments

Consumers and businesses want secure third-party sharing of financial data, with demand rising from $25B in 2023 to $123.7B by 2030.

Open banking is a simple, secure way to help consumers and businesses to move, manage and make more use of money. Every time you make a digital payment using Apple Wallet or Google Wallet to pay for a product or service, you’re relying on an implementation of open banking to instantly move money from one of your accounts to a vendor’s account – without the need for a checking or credit card account as an intermediary.

Paying for goods is just the beginning, and open banking is currently powering new ways for consumers and businesses to access a wide range of financial services that will eventually impact nearly every type of me-to-me, me-to-business, and business-to-business transaction – transfers, mortgages, leases, subscriptions, utility payments, savings and investing strategies, pensions and wealth management – all built on secure systems from regulated providers. In addition to convenience and efficiency, open banking can help businesses become more resilient, productive, and profitable by providing instant access to up-to-date financial data and providing a cost-effective account-to-account (A2A) payment alternative to card payments.

Digital payment technology is driving demand for instant account-to-account (A2A) transfers, rising from $18.29B in 2023 to $284.49B by 2032.

Unlike the processing of credit cards and bank checks, A2A is a direct transfer of funds from one account to another, whether person to person, person to business, or business to business. The key benefits of A2A are speed and reduced costs, as the transfer takes place instantly in most cases and is significantly faster for more complex scenarios with intermediary services, such as BACs and SWIFT, which still often rely on end of day batch settlement.

In addition to speed, the elimination of intermediaries reduces the cost of A2A processing, resulting in savings that can be passed on to customers. A2A-enabled instant payments also offer customers convenience, for example, easy access through mobile apps, improved account management, and the peace of mind of knowing payments will arrive on time. A2A transfers even increase security because they are encrypted and based on secure channels, reducing the possibility of errors and fraud.

Increased globalization is driving demand for fast, secure, low-cost international transactions, rising from $39.57T in 2023 to $156T by 2030.

Cross-border payments are financial transactions requiring a transfer of funds across international borders, whether purchasing goods directly from a company in another country, sending money to a friend abroad, or paying an international supplier for industrial goods. These transfers often require currency conversion, adhering to different regulatory frameworks, and working through different payment systems within each jurisdiction.

The increase in the cross-border payments market is driven by several factors. Globalization is impacting companies of all sizes as they rely on complex, international supply chains, a global customer base, and international investors. Online marketplaces and direct-to-consumer (D2C) models have enabled consumers worldwide to purchase goods and services from international sellers. An increase in employees working abroad means more people sending portions of their income to their home countries, while the rise of remote work and the “gig economy” allows more people to work for companies in other countries.

Meanwhile, rising demand on the part of businesses and consumers for fast, secure, and low-cost international transactions has accelerated fintech innovations and the evolution of regulations around open banking to make cross-border payments faster, cheaper, and more accessible.