New Delhi, Sep 22 (NationPress) A recent report indicates that global payments revenue is set to soar to $2.4 trillion by 2029. This analysis from Boston Consulting Group (BCG) highlights the significant rise of real-time Account-to-Account (A2A) payments, with India’s UPI now facilitating over 19 billion transactions each month.

Although growth is predicted to slow to 4 per cent annually over the next five years, the industry is experiencing a transformative phase, driven by agentic AI, digital currencies, and innovative fintech models that are pioneering the next wave of growth.

“Payments have evolved beyond mere money transfers; they are now integral to the very structure of commerce and financial autonomy. The advent of real-time A2A, digital currencies, and agentic AI is poised to redefine the movement of trillions, both domestically and internationally. Those who act promptly will lead the charge into the industry’s future,” stated Vivek Mandhata, Managing Director & Partner at BCG.

“This marks a pivotal moment for the sector. Traditional growth mechanisms are diminishing in effectiveness, while new catalysts such as agentic systems, programmable money, and fintech advancements come to the forefront. Stakeholders who adapt to these changes will dominate the coming decade,” added Inderpreet Batra, BCG Managing Director and Senior Partner, and Global Head of Payments and Fintech.

The findings revealed that after experiencing an 8.8 per cent annual growth since 2019, revenue growth is expected to moderate to 4 per cent annually.

Transaction-based revenues remain robust, but the advantages from deposit margins are diminishing. The report also pointed out that agentic AI is anticipated to affect over $1 trillion in e-commerce transactions.

Stablecoins have reached a volume of $26 trillion, yet real-world payments constitute only 1 per cent of this figure. The market primarily focuses on facilitating cryptocurrency trading.

Furthermore, payment fintechs generated $176 billion in revenue in 2024, growing at an impressive 23 per cent annually. Over the past 25 years, payments-focused fintechs have raised more than $135 billion in equity funding and now represent 45 per cent of total fintech revenue.

In 2024, real-time A2A payment volumes surged by 40 per cent worldwide. These systems now contribute to approximately 25 per cent of global digital retail payments, surpassing 50 per cent in certain markets such as India and Brazil.

“We are entering an era where growth and complexity intertwine,” remarked Markus Ampenberger, BCG Managing Director and Partner.

“The future leaders in payments will not only be quick to adopt technology but will also be those who seamlessly integrate new capabilities into their business models and enhance customer value propositions.”