Real-Time Payments Market Valuation – 2024-2031

Real-time payment systems can greatly speed up the payment industry’s growth and innovation. Merchants, financial institutions (FIs), customers, and society may all benefit from real-time payments because they improve payment visibility, enable better cash management, and help businesses manage their day-to-day operations. According to the analyst from Market Research, the real-time payments market has a valuation of USD 250 Million over the forecast subjugating around USD 2090 Million in 2031.

Small merchants that are used to waiting for days for settlement may benefit from enhanced liquidity, which raises their cash flow and sales outstanding daily. This surge in demand enables the market to grow at a CAGR of 30.4% from 2024 to 2031.

Real-Time Payments Market: Definition/ Overview

Real-time payments are the driving force behind the payments ecosystem’s fast growth. Most significant marketplaces have implemented or are in the process of introducing real-time payment mechanisms.  Governments seek to reap the economic benefits of more efficient payments. Real-time payments (RTP) are payments that begin and end instantaneously. Real-time payments refer to the technical infrastructure that enables them. Real-time payment networks should ideally be accessible 24 hours a day, seven days a week, so that transfers may be handled at any time.Furthermore, modern economies rely significantly on real-time payments. Those who have adopted real-time payments have radically changed the way people, businesses, and governments make and receive payments, as well as manage their finances. Governments that support and push real-time adoption see the highest rates of growth in real-time payments and thus in their economies.

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Which are the Drivers Encouraging the Adoption of Real-Time Payments Market?

As consumers increasingly demand faster and more convenient payment methods, real-time payments have emerged as an efficient solution. These payments allow for the rapid transmission of funds, making them ideal for peer-to-peer payments, bill payments, and retail sales. By enabling faster access to funds, real-time payments can help businesses improve cash flow management, reduce the need for borrowing, and increase efficiency in supply chains, payroll processing, and overall financial operations.

In today’s competitive landscape, companies that offer speedier payment methods may attract more clients and gain a competitive edge. Many regulatory organizations worldwide are supporting the use of real-time payments to modernize payment systems, increase financial inclusion, and promote economic development. Technology advancements like faster networks, better security protocols, and the widespread use of mobile devices have made real-time payments more practical and safe. Also, new developments like open banking and application programming interfaces (APIs) make incorporating real-time payment systems into existing financial services easier.

Furthermore, there is an increasing need for cross-border real-time payment solutions as the world economy gets more interconnected. The demand for quicker and more affordable ways to send and receive money internationally is driving the growth of real-time cross-border payment networks, which are driven by both businesses and consumers. Through the provision of quicker and more convenient financial services to marginalized populations, real-time payments can aid in the promotion of financial inclusion. For people in developing nations, this entails making banking services accessible to those without conventional bank accounts and making micropayments and remittances easier.

What are the Challenges in the Real-Time Payments Market?

There are still several obstacles in the market for real-time payments, despite the many advantages and factors that encourage their adoption. A notable obstacle is the intricacy of enhancing the current payment infrastructure to facilitate instantaneous processing. Upgrading their networks and systems is a necessary investment for many financial institutions and payment service providers to guarantee that they can consistently process the volume and speed of real-time transactions.

Additionally, interoperability between different real-time payment systems and networks can be a hurdle, particularly on a global scale, where differing standards and regulations may complicate cross-border transactions. Security and fraud prevention also present ongoing challenges, as the speed of real-time payments can increase the risk of unauthorized transactions and cyberattacks.

Furthermore, the regulatory landscape governing real-time payments is continuously evolving, requiring stakeholders to navigate complex compliance requirements and ensure adherence to regulatory standards while innovating in the rapidly changing payments ecosystem. Lastly, achieving widespread adoption among consumers and businesses may require education and awareness initiatives to promote the benefits of real-time payments and address any concerns about privacy, data security, and reliability. Overcoming these challenges will be essential for realizing the full potential of real-time payments and driving their widespread adoption in the global marketplace.

Category-Wise Acumens

How BFSI Sector help in the growth of the Real-Time Payments Market?

According to analysis, the Banking, Financial Services, and Insurance (BFSI) segment is estimated to dominate the market during the forecast period. These organizations have a significant impact on infrastructure development, regulatory compliance, and consumer acceptance. They invest in improving their payment infrastructure, using modern technology like instant payment platforms and APIs to enable faster and smoother transactions.

Additionally, BFSI businesses collaborate with technology vendors and industry consortia to provide interoperable payment solutions that allow clients to make real-time payments across multiple banks, payment networks, and geographic locations. The BFSI (Banking, Financial Services, and Insurance) industry plays a crucial role in ensuring regulatory compliance and managing risks in real-time payments. Financial institutions must follow strict rules that govern payment processing, data security, and anti-money laundering (AML) procedures. To promote the use of real-time payments, BFSI companies work closely with regulatory authorities to negotiate changing compliance requirements and establish comprehensive risk management frameworks. This involves using advanced analytics, artificial intelligence (AI), and machine learning (ML) algorithms to identify and prevent fraudulent transactions in real time, thereby safeguarding the integrity and security of the payment ecosystem.

Furthermore, the BFSI industry is encouraging consumers to adopt real-time payments through new product offerings, educational campaigns, and customer-centric methods. Financial institutions are leveraging their vast client base, marketing networks, and digital banking platforms to promote the benefits of real-time payments and encourage customers to adopt these faster and more convenient payment options. By providing seamless integration with mobile banking applications, digital wallets, and e-commerce platforms, BFSI providers are improving the accessibility and usability of real-time payment solutions, adapting to modern customers’ changing preferences and expectations.

Which factors are influencing the growth of Small and Medium-sized Enterprises in the Market?

The small and medium-sized enterprises segment is estimated to exhibit the highest growth within the market during the forecast period. Small and medium-sized enterprises (SMEs) are benefiting from real-time payments, which enable quicker access to funds and better cash flow management. This increased liquidity allows SMEs to deal with cash flow swings, invest in expansion opportunities, and meet financial obligations more easily. Real-time payments also enable faster invoice settlement, increasing working capital efficiency by accelerating receivables collection and lowering accounts receivable turnover. Real-time payments improve the operational efficiency of SMEs by simplifying payment procedures and reducing administrative costs.

SMEs can automate payment workflows and improve the speed and accuracy of transaction processing, removing manual intervention, and reducing the possibility of errors and delays. This automation frees up SMEs to focus on their core business operations and increase productivity. Real-time payments also encourage financial inclusion and market access for SMEs, particularly in developing nations and underserved areas. By offering quick and affordable payment solutions, real-time payment networks allow SMEs to engage more actively in the digital economy, access international markets, and compete on an even playing field with larger corporations. This democratization of financial services encourages economic growth, entrepreneurship, and innovation, enabling SMEs to thrive in an increasingly competitive business environment.

Furthermore, real-time payment solutions provide SMEs with ease and flexibility in conducting business, especially in an Omni channel setting. With the rise of digital marketplaces, mobile commerce, and e-commerce, SMEs need to offer seamless payment experiences to meet the diverse needs of their customers and seize new revenue opportunities. Real-time payment solutions support recurring billing models, facilitate cross-border transactions, and provide instant checkout options, improving customer satisfaction, loyalty, and retention.

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Country/Region-wise Acumens

Which region has the most potential for growth in the Real-Time Payments Market?

The Asia-Pacific (APAC) region has a significant potential for growth in the real-time payments market. With a diverse and extensive population, strong economic growth, and rapidly expanding digital infrastructure, APAC presents an ideal environment for the expansion and adoption of real-time payment solutions. Leading the way in driving innovation and adoption of real-time payment systems are China, India, Singapore, and Australia. This is driven by supportive regulatory frameworks, technological advancements, and changing consumer preferences.

China has experienced an explosive rise in mobile payments and digital wallets due to the widespread adoption of platforms like Alipay and WeChat Pay. The country’s large population and growing middle class have driven demand for secure and convenient payment options, thus driving the growth of real-time payment ecosystems. Similarly, India’s push towards digitalization has revolutionized the payment landscape, enabling instant peer-to-peer transfers, bill payments, and merchant transactions on a large scale. Countries in Southeast Asia like Singapore and Thailand are actively investing in upgrading their payment infrastructure and promoting real-time payment systems to facilitate economic expansion and financial inclusion. The Fast and Secure Transfers (FAST) in Singapore and Prompt Pay in Thailand are notable examples of real-time payment initiatives aimed at enhancing cross-border transactions, promoting cashless payments, and fostering greater financial connectivity within the region.

Furthermore, the dynamism of the e-commerce market in APAC, the burgeoning gig economy, and the rising demand for digital financial services are facilitating the adoption of real-time payments across diverse industries. As businesses and consumers increasingly prioritize speed, convenience, and security in payment transactions, real-time payment solutions are poised to play a central role in shaping the future of commerce and finance in the APAC region.

How North American region dominate in Real-Time Payments Market?

North America has emerged as a dominant force in the global market for real-time payments due to several significant factors. The region has an advanced financial infrastructure and technological capabilities, which make it conducive to the development and adoption of real-time payment systems. The Clearing House’s Real-Time Payments (RTP) network has gained traction as a leading solution, offering businesses and financial institutions the ability to process instant payments. Similarly, Canadian Payments Canada has introduced the Real-Time Rail (RTR), which provides Canadians with real-time payment capabilities and fosters innovation within the payments ecosystem.

North America is fortunate to possess a robust regulatory framework that facilitates the expansion of real-time payments. Regulators such as the Federal Reserve in the United States and the Office of the Superintendent of Financial Institutions (OSFI) in Canada have taken proactive measures to facilitate the development and adoption of real-time payment systems, ensuring interoperability, security, and compliance with industry standards.

Furthermore, the region’s large and diverse economy and tech-savvy consumer base drive demand for faster and more convenient payment solutions. Various sectors, including retail, healthcare, and financial services, are increasingly recognizing the benefits of real-time payments in improving cash flow, enhancing customer experience, and reducing operational costs. The availability of a robust payment infrastructure and regulatory support positions North America as a leader in the global real-time payments landscape.

Competitive Landscape

The competitive landscape in the real-time payments market is dynamic and evolving, driven by changing customer preferences, technological advancements, and market dynamics. Providers continue to innovate and differentiate their offerings to stay competitive and capture market share in this rapidly growing market.

Some of the prominent players operating in the real-time payments market include:

• Financial Software & Systems Pvt. Ltd.
• Mastercard, Inc.
• Microsoft Corporation
• TCS
• Temenos AG
• Visa Inc.
• Volante Technologies Inc.
• Sila
• Rapyd
• ACI Worldwide, Inc.
• Cognizant
• FIS Inc.
• Mindgate Solutions Private Limited
• Montran Corp.
• PayPal Holdings, Inc.
• Finastra, Fiserv, Inc.

Latest Developments:

• In June 2022, ACI Worldwide announced its new mobile engagement platform ACI Smart Engage, enabling merchants worldwide to serve up their inventory of services and goods directly to consumers’ smartphones using voice, location, and image recognition technology, taking shopping-on-the-go to a new level.
• In April 2022, Fiserv launched Appmarket for financial institutions, where they can access a curated set of fintech solutions to help them operate more efficiently, reach new customers, and compete more effectively. AppMarket would empower Fiserv financial institution clients and address emerging gig economy banking and crypto finance opportunities, small and mid-size business (SMB) lending, and other priorities.
• In April 2023, Visa announced a partnership with PayPal and Venmo to pilot Visa+, an innovative service that aims to enable individuals to move money quickly and securely between different person-to-person (P2P) digital payment apps. Later in 2023, Venmo and PayPal users in the United States will be able to start moving money seamlessly between the two platforms.
• In April 2023, CRED introduced its UPI-based P2P payments, providing its users with a new payment option. The feature enables CRED members to access ‘pay anyone’ through their contact list, phone numbers, or UPI IDs.

Report Scope

Real-Time Payments Market, by Category

Payment:

• Person-to-Person
• Business-to-Person

Component:

• Solutions
• Services

 Deployment:

• Cloud
• On-premises

Enterprise Size:

• Small and Medium-sized Enterprises
• Large Enterprises

Vertical:

• BFSI
• IT and Telecommunications
• Retail and e-commerce
• Others

Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Research Methodology of Market Research:

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

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