Real-Time Payments Market Size, Share & Industry Analysis, By Payment Type (Person to Person (P2P), Person to Business (P2B), Business to Business (B2B), and Others), By Deployment (On-premises and Cloud), By Enterprise Type (Small & Medium Enterprises (SMEs) and Large Enterprises), By Industry (BFSI, Retail & E-commerce, IT & Telecom, Government, Healthcare, Energy & Utilities, Travel & Tourism, and Others), and Regional Forecast, 2024-2032

The global real-time payments market size was valued at USD 18.29 billion in 2023 and is projected to grow from USD 24.91 billion in 2024 to USD 284.49 billion by 2032, exhibiting a CAGR of 35.4% during the forecast period. North America dominated the real-time payments market with a market share of 11.26% in 2023.

Real-Time Payments (RTP) is a payment processing network used for immediate account-to-account money transfer and is made available to the recipient immediately. The RTP system contrasts with traditional payment methods, which might take hours or days to settle. This system is designed to provide immediate confirmation and access to funds, improving efficiency and convenience for both individuals and businesses.

• According to an FIS 2022 report, the real-time payments application is live in 60+ countries across different business verticals to fulfill the demands of the customers. This generates the demand for RTP solutions to deliver seamless transaction experience to customers across the globe.

Similarly, regulatory initiatives taken by governments of various countries to bring innovations across the payment industry and growing popularity of financial inclusion to help customers access banking services from remote areas, along with significant internet connectivity, will propel the growth of the market.

The COVID-19 pandemic forced governments across the globe to implement lockdowns. The situation enhanced the demand for digitalization across banks, merchants, and customers to bring innovations in the payment ecosystem and aimed to shift the payment transaction process to digital environments to secure their revenue streams. According to a GlobalData and ACI Worldwide report in 2021, during the COVID-19 pandemic, there was a 41% surge in the demand for real-time payments transactions in 2020 as this period accelerated the demand of digital payments among different industry verticals. Thus, the demand for RTP was high during the pandemic.

IMPACT OF GENERATIVE AI

Gen AI-Integrated RTP Solutions Will Boost Banking Efficiency and Help Make Data-Driven Decisions

Generative AI focuses on revolutionizing the operational efficiency of traditional transaction processes by ensuring data integrity, quality, and regulatory compliance (such as GDPR and CCPA) to safeguard sensitive customer information and balance the utilization of data for marketing. Cutting-edge technologies, such as Artificial Intelligence (AI) and Machine Learning (ML) play a crucial role in real-time monitoring and detection of suspicious activities, ensuring the safety of transactions.

• According to a research survey in 2023, 54% of companies in the U.S., Asia Pacific, and EMEA are implementing AI technology, and 61% are planning to integrate Gen AI in 2024. This indicates that the integration of Gen AI will significantly help organizations provide personalized banking assistants and drive automation across the payment banking industry.

Hence, the growing integration of Gen AI with RTP solutions is estimated to boost the efficiency of the banking process, which will significantly help banks make data-driven decisions.

Real-Time Payments Market Trends

Growing Integration of AI and ML Technologies with RTP to Drive Market Growth

AI-powered predictive analytics and chatbots are revolutionizing customer service, providing instant support and tailored services that match user behaviors and preferences. AI-driven chatbots are changing the face of customer service by offering 24/7 assistance, quickly solving problems, and answering common questions. These advancements are boosting efficiency and monitoring and significantly reducing human errors. They are also assisting in detecting payment frauds.

• For instance, in July 2023, Mastercard partnered with TSB and integrated artificial intelligence (AI) capabilities to detect fraudulent activities and prevent fake payment transactions. This partnership aims to reduce real-time payment scams.

Thus, by integrating artificial intelligence and machine learning technologies, businesses are experiencing a transformation in payment processes. These technologies help make payment operations smoother and deliver improved experiences to customers worldwide. These factors will fuel the market's growth over the forecast period.

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Real-Time Payments Market Growth Factors

Increased Proliferation of Smartphones to Drive Market Growth

Growing integration of Near-Field Communication (NFC) techniques and increasing demand for digital currencies among people for seamless fund transactions will drive the adoption of real-time payment solutions over the forecast period. Increased usage of smartphones by merchants to accept payments via specialized mobile applications can help them manage their business finances. Thus, the usage of mobile phones eliminates the use of external payment infrastructure and hardware, which significantly reduces the complexity of the payment process. Furthermore, the growing penetration of 5G internet services enhances the merchants’ and customers’ accessibility to payment applications to make contactless real-time payments.

• According to the Internet and Mobile Association of India Report 2022, the number of Internet users in India is expected to reach 800 million by 2023. The growth in internet users has also increased the number of mobile wallet users in India, which is projected to reach 900 million by 2025.

The increasing integration of digital technologies is accelerating digital transformation among financial institutions, which plays a major role in the development of the digital ecosystem. Thus, the growing integration of smartphones is the key factor that will propel the real-time payments market growth over the forecast period.

RESTRAINING FACTORS

Increasing Data Breach and Security Issues to Hamper Market Growth

Consumers are wary of using real-time payment networks due to fears of their financial data being accessed by third-party mobile service providers. Additionally, the risk of identity theft and data breaches is expected to increase in the future. This is due to the use of public Wi-Fi, weak passwords, and phishing attacks. Moreover, scammers substitute real-time payments at retail locations with their own codes, leading customers to unwittingly make payments to fraudsters instead of the merchants.

These factors together increase the risk of making RTP systems, which in turn, will hinder the market's expansion.

Real-Time Payments Market Segmentation Analysis

By Payment Type Analysis

Increase in P2P Payment Transactions Using Mobile Wallets and Banking Drove Market Growth

By payment type, the market is divided into person to person (P2P), person to business (P2B), business to business (B2B), and others.

The person-to-person (P2P) segment held the largest market share in 2023 and is projected to record the highest CAGR during the forecast period. Increasing adoption of contactless payment solutions, mobile wallets, and online banking apps to conduct payment transactions seamlessly from anywhere at any time will boost the segment’s growth. Thus, the usage of digitally powered payment solutions enhances the user experience, thereby fueling the demand for real-time payment solutions and propelling the segment’s growth.

• According to an analyst’s survey, increasing payment transactions of domestic and international companies with banks and financial service providers using multiple digital platforms is the key factor that will boost the demand for P2P payments over the forecast period.

Furthermore, the person-to-business (P2B) segment will record the second-fastest CAGR over the forecast period. This is due to the rise in mobile-based transactions across the e-commerce sector, which will boost the demand for RTP solutions among businesses and customers.

By Deployment Analysis

Rapid Adoption of Cloud-based Real-Time Payments to Automate Payment Operation Process Will Drive Market Growth

By deployment, the market is segregated into on-premises and cloud.

The cloud-based RTP solution segment is estimated to record the highest CAGR over the forecast period. Cloud-based RTP solutions with enhanced global connectivity at a single point of access and lower operating costs can help improve the performance of payment networks. Integrating cloud technology with real-time payment applications helps ensure the availability of value-added payment services, driving the segment’s growth.

The on-premises segment held the largest market share in 2023 and is expected to show moderate growth over the forecast period. On-premises software is expensive to install and maintain and requires regular upgrades, support, and customization. This has increased the software's operating expenses over time. Hence, the demand for on-premises software is low compared to cloud-based software.

By Enterprise Type Analysis

Rise in Adoption of Real-Time Payments by SMEs to Reduce Operational Cost and Time Will Propel Market Growth

By enterprise type, the market is divided into Small & Medium Enterprises (SMEs) and large enterprises.

The Small & Medium Enterprises (SMEs) segment is estimated to register the fastest CAGR during the forecast period. SMEs are shifting their payment operations from traditional paper-based invoicing to digital methods. It has enhanced the adoption of digital technologies among SMEs, which can help save costs and improve the payment transaction performance of different industry verticals. These are the factors anticipated to boost the growth of the SME segment over the forecast period.

Furthermore, the large enterprises segment dominated the real-time payments market share in 2023. Many large enterprises are investing in real-time payment technologies to improve their payment processing efficiency. Furthermore, the growing demand for RTP solutions among large retail stores to offer quick payment options to customers is projected to boost the adoption of RTP among large companies.

By Industry Analysis

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Rise in Demand for Instant Payments in Retail & E-Commerce Sectors Boosted Use of Real-Time Payment Solutions

By industry, the market is divided into BFSI, retail & e-commerce, IT & telecom, government, healthcare, energy & utilities, travel & tourism, and others.

The retail & e-commerce segment led the market in 2023, accounting for over 30.3% share of the global revenue and is projected to record the highest CAGR over the forecast period. The increasing demand for instant payment solutions from merchants and retailers accelerated the use of real-time payment solutions. Increased usage of RTP solutions provides retailers with a competitive advantage by offering an efficient and cost-effective payment method. Customers mainly prefer mobile banking, which is also a significant factor that will drive the growth of the retail & e-commerce segment over the forecast period.

• For instance, the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) unveiled a real-time retail payment link to simplify cross-border payments between the two countries. The link allows merchants of both countries to transfer funds via e-wallets and bank accounts, and provides an opportunity to contribute more to trade activities.

The BFSI segment is set to experience the second-fastest growth rate during the forecast period. Banks around the world are introducing real-time payment solutions to enhance customer experiences. Increasing consumer demand for convenient and speedy fund transactions will spur the adoption of RTP solutions over traditional payment methods. For instance, in India, Unified Payments Interface (UPI) is the main platform that provides real-time payment solutions facilitated by the National Payments Corporation of India (NPCI) for seamless fund transactions and merchant payments.

REGIONAL INSIGHTS

The market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific, and each region is further studied across countries.

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North America had the highest market share and contributed to the market growth in 2023. The rise in real-time B2B transactions among retailers and merchants across various countries will boost the growth of the RTP market in North America over the forecast period. Furthermore, the increasing adoption of digital technologies in the banking industry aims to digitalize banking apps used across countries, such as the U.S., Canada, and Mexico. This factor is expected to drive the real-time payments market growth during the forecast period.

• According to research, the U.S. ranked 33rd in the global per-month real-time payment transactions. The American real-time payment transactions are estimated to grow from USD 734 million in 2019 to USD 4.2 billion by 2024.

Furthermore, the dominant presence of real-time payment solution providers, such as Fiserv, Inc., Mastercard, Visa, and FIS in different countries across the region will propel the market growth in North America over the forecast period.

Asia Pacific is estimated to record the highest CAGR during the forecast period. This is due to rising investments and expenditures by the governments to bring digitalization in the banking industry by integrating advanced digital technologies. These are the key factors that will help drive the market's growth in the region during the forecast period. Countries, such as India, China, and Japan are contributing to greater economic liquidity. This has also led to driving the growth of the market over the forecast period. For instance,

• According to an ACI Worldwide survey in 2022, India is responsible for 46% of global real-time payment transactions and remains the undisputed leader of RTP solution and service provider with a growth rate of 76.8%.

Europe is expected to grow at a moderate rate over the forecast period. The growing investments by companies, such as Apple Pay, Vodafone, Payconiq, Advanzia Bank, and many European countries to boost mobile-powered transactions across different industries is boosting the product’s demand. Moreover, mobile-based transactions are also acting as a medium for improving a bank’s performance, thereby accelerating the growth of the regional market.

The Middle East & Africa is projected to register the second-fastest CAGR due to increasing penetration of the Internet and adoption of mobile payment applications to deliver seamless user experiences.

South America is in development phase due to the growing demand for contactless payments and increasing adoption of smartphones in countries, such as Brazil and Argentina. These factors will boost the adoption of RTP solutions in the region over the forecast period.

KEY INDUSTRY PLAYERS

Technological Developments by Leading Companies to Aid Their Market Proliferation

The companies operating in the market include ACI Worldwide, Financial Software & Systems Pvt. Ltd., Fiserv, Inc., Mastercard, Visa, FIS, and NovoPayment, Inc. These firms are focusing on bringing innovations in RTP systems. To enhance their operations throughout the world, they are using various strategic methods, such as partnerships, product launches, investments, acquisitions, and mergers.

List of Top Real-Time Payments Companies:

• ACI Worldwide (U.S.)


• Financial Software & Systems Pvt. Ltd. (India)


• Fiserv, Inc. (U.S.)


• Finastra (U.K.)


• Mastercard, Inc. (U.S.)


• Visa, Inc. (U.S.)


• FIS (U.S.)


• Nium Pte. Ltd. (Singapore)


• NovoPayment, Inc. (U.S.)


• PayPal Holdings, Inc. (U.S.)


• Volante Technologies, LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: AFFIN Group entered a partnership with ACI Worldwide, a real-time payments software provider, to revolutionize the bank’s payment capabilities. Through this partnership, the companies aim to develop new enterprise payment platforms that significantly improve and streamline the payment processes for Malaysian businesses.


• June 2024: The Central Reserve Bank of Peru (BCRP) entered a partnership with NPCI International Payments Limited (NIPL) to establish a real-time payments system in Peru, similar to India’s Unified Payments Interface (UPI). Through this partnership, the companies aim to develop an efficient and reliable payment platform for instant payments between businesses and individuals. It will also enable the improvement of the interoperability and connectivity of both domestic and international payment networks.


• June 2024: Bitpanda, a financial technology company, formed a partnership with Deutsche Bank to deliver a real-time payment solution for Bitpanda users' incoming and outgoing transactions across Germany. This RTP solution provides access to the German International Bank Account Numbers (IBAN) to deliver a better user experience with enhanced speed and efficiency.


• January 2024: MasterCard partnered with The Clearing House (TCH) to enhance the RTP capabilities mainly used by businesses, consumers, and the government. The company will use TCH’s RTP network to develop real-time account-to-account technologies for its customers' financial institutions.


• August 2021: JPMorgan Chase & Co. unveiled a new real-time payments service called "Request for Pay,” which allows corporate clients to send payments to the bank’s 57 million retail clients using websites or applications.

REPORT COVERAGE

The study on the market includes prominent areas globally to help readers gain enhanced knowledge of the industry verticals. Moreover, the report offers insights into the most recent industry developments and an analysis of high-tech solutions being adopted promptly worldwide. It also highlights some of the growth-stimulating factors and limitations, allowing the reader to obtain a comprehensive understanding of the market.

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