Real-Time Payments Market (Updated Version Available)
Real-Time Payments Market Size, Share & Trends Analysis, By Component (Solutions and Services), Deployment (Cloud and On-Premises), Payment Type (Person-to-Person, Person-to-Business, Business-to-Person, Domestic Peer to Peer, and Cross Border Peer to Peer), Enterprise Size (Large Enterprises and Small & Medium Enterprises), Industry Vertical (BFSI, IT & Telecommunication, Retail & E-commerce, Healthcare, Government, and Others), By Region, Forecast Period 2023 - 2030
Report ID : RI_489374 | Date : March 2023 |
Format : 
Key Market Overview:
The Real-Time Payments market is projected to grow at a CAGR of 22.15% during the period from 2023 to 2030, with a market size of USD 17.57 billion in 2022. By 2030, the market is estimated to reach USD 87.10 billion. This growth can be attributed to the increasing demand for fast and secure payment solutions, rising adoption of digital payments, and the need for efficient payment systems in various industries.
Real-time payments refer to electronic transactions that occur instantaneously between two parties. Real-time payments are processed within seconds, providing an immediate transfer of funds as compared to traditional payment methods, which take weeks to clear. Additionally, real-time payments are faster, more convenient, and more secure than traditional payment methods. Real-time payments enable businesses to optimize their cash flow by providing immediate access to funds, which helps businesses to operate more efficiently.
The global real-time payments market is experiencing significant growth in recent years, driven by the increasing demand for fast and secure payment systems. The growth in the market is attributed to the increasing adoption of digital payment systems and the growing demand for faster payment processing. In addition, the rise of e-commerce and mobile payments has fueled the demand for real-time payment solutions, as consumers prefer instant payment confirmation. Hence, real-time payments allow for instant payment processing and settlement, becoming an ideal solution for e-commerce and mobile payments. For instance, in March 2021, according to the global report by ACI Worldwide, Inc., more than 70.3 billion real-time payment transactions were processed globally in 2020 and a surge of 41% was observed during the COVID-19 pandemic.
Real-Time Payments Report Coverage:
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Market Dynamics:
Driver:
The emergence of new payment technologies including digital wallets, contactless payments, and mobile payments is a key driver in the growth of the real-time payments market. The growth of the market is driven by contactless payments allowing consumers to make payments by tapping the cards or mobile devices on a payment terminal, enabling instant payment processing and clearance. Moreover, the emergence of digital wallets, such as Apple Pay and Google Wallet to store payment information and allowing consumers to make payments quickly and easily is also contributing to the growth of real-time payments. For instance, in October 2021, JPMorgan Chase & Co. announced the launch of Request for Pay, which enables corporate clients to send payment requests to 57 million retail clients using the mobile app and website. Digital Bill Payment will help clients to accelerate revenue realization, reduce costs to serve their customers, and improve user satisfaction through convenient and intuitive interactions.
Restraint:
Data breaches and security concerns act as significant restraints for the growth of the market as real-time payment systems are vulnerable to a range of security threats, including fraud, cyberattacks, and data breaches. Additionally, the risk of identity theft which is subjected to the use of public Wi-Fi, vulnerabilities in passwords, and phishing attacks are also restraining the market growth. Furthermore, scammers replace real-time payments code at merchant outlets with their codes, and customers end up making payments to fraudsters instead of merchants. The aforementioned factors are collectively responsible for hampering the growth of the real-time payments market.
Opportunities:
The incorporation of strong security features such as biometric authentication and blockchain technology in real-time payment systems is projected to create potential future opportunities for market growth. The security features are predicted to make payments more secure and prevent fraud, driving market growth. Therefore, the adoption of security features is expected to increase consumer trust in real-time payments and encourage greater adoption and usage of real-time payments.
Real-Time Payments Market Competitive Landscape:
The real-time payments market is rapidly growing and becoming increasingly competitive, with several players offering real-time payment solutions. Prominent market players are pursuing various strategies, such as strategic joint ventures and partnership agreements, product innovations, research & development initiatives, geographical expansions, and mergers & acquisitions, to strengthen the foothold in the industry. Some of the key players in the real-time payments competitive landscape are:
• Fidelity National Information Services, Inc.
• MasterCard Inc.
• ACI Worldwide Inc.
• MoneyGram International, Inc.
• Fiserv, Inc.
• Treasury Prime
• Visa Inc.
• Fidelity National Information Services, Inc. (FIS Inc.)
• PayPal Holdings, Inc.
• Volante Technologies Inc.
Recent Developments:
• In May 2022, FIS, in partnership with Treasury Prime, announced a new embedded finance offering to help financial institutions grow the client base and meet the growing need for digitally native banking experiences. The global economy\'s digital transformation is accelerating, and regional banks and communities are seeking different ways to offer advanced digital capabilities and open new channels for distribution.
• In June 2022, MasterCard and DFC announced the first joint program for financial inclusion, designed to deepen financial inclusion in Honduras, Guatemala, and El Salvador, thus creating economic opportunity for small businesses and individuals. The partnership aims to promote economic growth and development in the region by increasing access to financial services and digital payments.
Real-Time Payments Market Segmentation:
By Component
The component segment is divided into solutions and services. The solution sector dominates the market and accounts for the largest revenue in 2022. The solution segment is further divided into the payment gateway, payment processing, security & fraud management that facilitate real-time payments. Real-time payment solutions are necessary for businesses and financial institutions to provide fast, secure, and convenient payment options to customers. The growing demand for the solutions, particularly for consumers and businesses to seek out faster and more efficient payment options is driving the market growth. For instance, in February 2021, ClearSale LLC, a fraud detection solution provider, announced the launch of an e-commerce podcast, Gateway to E-Commerce, to discuss the trends and challenges associated with fraud across the e-commerce platform during the pandemic.
Services are expected to register the fastest CAGR in the real-time payments market due to the increasing demand for consulting, integration, maintenance, and support services. The services are necessary for businesses and financial institutions to effectively implement and manage real-time payment solutions. Additionally, real-time payment solution needs to be customized to meet the unique needs of businesses and financial institutions. Services such as consulting, and integration help to tailor real-time payment solutions to specific user requirements. For instance, in November 2020, Shopify announced a partnership with Alipay to help merchant access new global consumers and to offer inclusive financial services to more than one billion people.
By Deployment
The deployment segment is bifurcated into cloud and on-premises. The on-premises segment dominates the market as real-time payment systems handle sensitive financial information and require high levels of security. On-premises solutions offer greater control over security measures, which is an essential requirement for businesses and financial institutions. Additionally, on-premises solutions are customized to meet the unique needs of businesses and financial institutions, including integration with existing IT infrastructure and the ability to add or modify features as needed. For instance, in September 2020, ACI Worldwide announced its partnership with Mastercard to offer a wide range of real-time payment solutions supporting on-premises software for the central bank, government, and system operator-owned platforms.
Cloud-based solutions are anticipated to register the fastest CAGR in the real-time payments market during the forecast period. Cloud-based solutions are easily scaled up or down based on requirements, becoming ideal for businesses and financial institutions with fluctuating transaction volumes. Additionally, cloud-based solutions incorporate the latest technological advancements, such as machine learning and AI, to improve real-time payment processing and fraud detection. For instance, in March 2021, Banking Circle, a financial infrastructure provider, announced the enhancement of its cross-border payment platform through the integration with Microsoft Azure, a cloud platform, to provide real-time payment insights to clients.
By Payment Type
Based on payment type, the market is categorized into person-to-person, person-to-business, business-to-person, domestic peer-to-peer, and cross-border peer-to-peer. The person-to-business (P2B) payment type dominates the market owing to the increasing use of mobile devices to make payments for groceries, coffee, and meals. P2B payments are appropriate for such types of transactions, as P2B allows consumers to easily and quickly make payments to merchants using mobile devices. Additionally, the merchant acceptance of P2B payment types either through proprietary mobile payment apps or third-party payment providers including PayPal and Venmo is also driving the market growth. For instance, in July 2020, according to the statistics provided by Oberlo, mobile commerce sales were projected to reach USD 3.56 trillion in 2021, which was approximately 22.3% higher than the sales reported in 2020.
Person-to-person (P2P) payments are expected to register the fastest compound annual growth rate in the real-time payments market as P2P payments offer a convenient way for individuals to send and receive money using mobile devices. Additionally, P2P payments involve lower transaction fees compared to traditional payment methods such as wire transfers or money orders, hence becoming a more affordable option for consumers. For instance, in February 2021, MoneyGram International and Visa announced the launch of a real-time Peer-to-Peer (P2P) payment solution in Vietnam through Visa Direct. The solution enables customers from the U.S., U.K., and 18 other European countries to transfer money to Vietnam using Visa Direct.
By Enterprise Size
Based on enterprise size, the market is bifurcated into large enterprises and small & medium enterprises. The large enterprise-size segment dominates the market in 2022 and account for the maximum share of global revenue. Several businesses are making investments in real-time payment solutions to provide efficient payment processing. In addition, the rising demand for such solutions across large-scale retail stores to offer efficient and quick payment processing to customers is propelling the growth of the large enterprise.
Small & medium size enterprises (SMEs) are anticipated to witness the fastest CAGR during the coming years. Several SMEs across the world are transitioning from traditional paper-based invoicing to digital invoicing that is expected to boost market growth. In addition, small & medium enterprises are projected to adopt cost-saving technologies, such as cloud-based services, to grow in the industry. The aforementioned factors are expected to support the growth of the SME segment over the forecast period.
By Industry Vertical
The industry vertical segment is categorized into BFSI, IT & telecommunication, retail & e-commerce, healthcare, government, and others. The retail & e-commerce sector dominates the market as real-time payments improve the customer experience by providing a faster and more convenient payment method. Additionally, real-time payments reduce the risk of fraud by providing instant payment confirmation, and fraudulent transactions are detected and prevented in real time. For instance, in June 2022, ACI Worldwide announced the launch of ACI Worldwides Smart Engage to enhance the shopping experience for customers while boosting sales for merchants. Smart Engage is built on ACIs real-time payments platform, providing instant and secure payment processing capabilities.
The BFSI sector is predicted to witness the fastest CAGR as real-time payments allow for instant and secure money transfers between accounts, providing convenience for customers to send and receive payments. Additionally, real-time payments are used to pay bills instantly, helping customers to avoid late payment fees and penalties. The payment is processed in real-time, and the customer receives instant confirmation of the payment. Furthermore, banks across the globe are launching real-time payment solutions to enhance customer experiences. For instance, in November 2020, the Brazil Central Bank announced the launch of Pix, an instant payment platform for citizens, government, and private sector entities in Brazil. The instant payment system offers consumers and companies across Brazil greater flexibility to make money transfers 24/7.
By Region
Asia Pacific dominates the market in 2022 and accounted for the maximum share of the global revenue. The growing adoption of real-time payment solutions by large-scale as well as small & medium scale enterprises in Asia Pacific countries including India, Japan, and China is driving the regional market growth. Moreover, several enterprises across the Asia Pacific region are focusing on digitizing the business operations, which, in turn, is expected to boost the demand for real-time payment solutions. For instance, in April 2022, according to the (CEBR) Centre for Economics and Business Research, India accounted for the highest volume of real-time payments among businesses globally, with over 40% of all such payments made through 2021. India made 48.6 billion real-time payments through 2021 – which is around 2.6 times higher than China, which is in second place with 18 billion real-time transactions.
North America is anticipated to register the fastest CAGR due to the presence of key players including ACI Worldwide Inc., FIS Inc., Fiserv Inc., and MasterCard Inc. operating in the market. The major players are focusing on providing cloud-based or on-premises solutions to large enterprises to enable efficient and effective money transfers in real time. Additionally, the players are also focusing on expanding the product offerings to enhance customer experience which in turn is expected to drive market growth.
The Real-Time Payments market is projected to grow at a CAGR of 22.15% during the period from 2023 to 2030, with a market size of USD 17.57 billion in 2022. By 2030, the market is estimated to reach USD 87.10 billion. This growth can be attributed to the increasing demand for fast and secure payment solutions, rising adoption of digital payments, and the need for efficient payment systems in various industries.
Real-time payments refer to electronic transactions that occur instantaneously between two parties. Real-time payments are processed within seconds, providing an immediate transfer of funds as compared to traditional payment methods, which take weeks to clear. Additionally, real-time payments are faster, more convenient, and more secure than traditional payment methods. Real-time payments enable businesses to optimize their cash flow by providing immediate access to funds, which helps businesses to operate more efficiently.
The global real-time payments market is experiencing significant growth in recent years, driven by the increasing demand for fast and secure payment systems. The growth in the market is attributed to the increasing adoption of digital payment systems and the growing demand for faster payment processing. In addition, the rise of e-commerce and mobile payments has fueled the demand for real-time payment solutions, as consumers prefer instant payment confirmation. Hence, real-time payments allow for instant payment processing and settlement, becoming an ideal solution for e-commerce and mobile payments. For instance, in March 2021, according to the global report by ACI Worldwide, Inc., more than 70.3 billion real-time payment transactions were processed globally in 2020 and a surge of 41% was observed during the COVID-19 pandemic.
Real-Time Payments Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | USD 87.10 Billion |
| CAGR (2023-2030) | 22.15 % |
| Base Year | 2022 |
| By Component | Solutions and Services |
| By Deployment | Cloud and On-Premises |
| By Payment Type | Person-to-Person, Person-to-Business, Business-to-Person, Domestic Peer to Peer, and Cross Border Peer to Peer |
| By Enterprise Size | Large Enterprise and Small & Medium Enterprise |
| By Industry Vertical | BFSI, IT & Telecommunication, Retail & E-commerce, Healthcare, Government, and Others |
| By Geography |
|
| Key Players | Fidelity National Information Services, Inc., Mastercard Inc., ACI Worldwide Inc., MoneyGram International, Inc., Fiserv, Inc., Treasury Prime, Visa Inc., Fidelity National Information Services, Inc. (FIS Inc.), PayPal Holdings, Inc., Volante Technologies Inc. |
Market Dynamics:
Driver:
The emergence of new payment technologies including digital wallets, contactless payments, and mobile payments is a key driver in the growth of the real-time payments market. The growth of the market is driven by contactless payments allowing consumers to make payments by tapping the cards or mobile devices on a payment terminal, enabling instant payment processing and clearance. Moreover, the emergence of digital wallets, such as Apple Pay and Google Wallet to store payment information and allowing consumers to make payments quickly and easily is also contributing to the growth of real-time payments. For instance, in October 2021, JPMorgan Chase & Co. announced the launch of Request for Pay, which enables corporate clients to send payment requests to 57 million retail clients using the mobile app and website. Digital Bill Payment will help clients to accelerate revenue realization, reduce costs to serve their customers, and improve user satisfaction through convenient and intuitive interactions.
Restraint:
Data breaches and security concerns act as significant restraints for the growth of the market as real-time payment systems are vulnerable to a range of security threats, including fraud, cyberattacks, and data breaches. Additionally, the risk of identity theft which is subjected to the use of public Wi-Fi, vulnerabilities in passwords, and phishing attacks are also restraining the market growth. Furthermore, scammers replace real-time payments code at merchant outlets with their codes, and customers end up making payments to fraudsters instead of merchants. The aforementioned factors are collectively responsible for hampering the growth of the real-time payments market.
Opportunities:
The incorporation of strong security features such as biometric authentication and blockchain technology in real-time payment systems is projected to create potential future opportunities for market growth. The security features are predicted to make payments more secure and prevent fraud, driving market growth. Therefore, the adoption of security features is expected to increase consumer trust in real-time payments and encourage greater adoption and usage of real-time payments.
Real-Time Payments Market Competitive Landscape:
The real-time payments market is rapidly growing and becoming increasingly competitive, with several players offering real-time payment solutions. Prominent market players are pursuing various strategies, such as strategic joint ventures and partnership agreements, product innovations, research & development initiatives, geographical expansions, and mergers & acquisitions, to strengthen the foothold in the industry. Some of the key players in the real-time payments competitive landscape are:
• Fidelity National Information Services, Inc.
• MasterCard Inc.
• ACI Worldwide Inc.
• MoneyGram International, Inc.
• Fiserv, Inc.
• Treasury Prime
• Visa Inc.
• Fidelity National Information Services, Inc. (FIS Inc.)
• PayPal Holdings, Inc.
• Volante Technologies Inc.
Recent Developments:
• In May 2022, FIS, in partnership with Treasury Prime, announced a new embedded finance offering to help financial institutions grow the client base and meet the growing need for digitally native banking experiences. The global economy\'s digital transformation is accelerating, and regional banks and communities are seeking different ways to offer advanced digital capabilities and open new channels for distribution.
• In June 2022, MasterCard and DFC announced the first joint program for financial inclusion, designed to deepen financial inclusion in Honduras, Guatemala, and El Salvador, thus creating economic opportunity for small businesses and individuals. The partnership aims to promote economic growth and development in the region by increasing access to financial services and digital payments.
Real-Time Payments Market Segmentation:
By Component
The component segment is divided into solutions and services. The solution sector dominates the market and accounts for the largest revenue in 2022. The solution segment is further divided into the payment gateway, payment processing, security & fraud management that facilitate real-time payments. Real-time payment solutions are necessary for businesses and financial institutions to provide fast, secure, and convenient payment options to customers. The growing demand for the solutions, particularly for consumers and businesses to seek out faster and more efficient payment options is driving the market growth. For instance, in February 2021, ClearSale LLC, a fraud detection solution provider, announced the launch of an e-commerce podcast, Gateway to E-Commerce, to discuss the trends and challenges associated with fraud across the e-commerce platform during the pandemic.
Services are expected to register the fastest CAGR in the real-time payments market due to the increasing demand for consulting, integration, maintenance, and support services. The services are necessary for businesses and financial institutions to effectively implement and manage real-time payment solutions. Additionally, real-time payment solution needs to be customized to meet the unique needs of businesses and financial institutions. Services such as consulting, and integration help to tailor real-time payment solutions to specific user requirements. For instance, in November 2020, Shopify announced a partnership with Alipay to help merchant access new global consumers and to offer inclusive financial services to more than one billion people.
By Deployment
The deployment segment is bifurcated into cloud and on-premises. The on-premises segment dominates the market as real-time payment systems handle sensitive financial information and require high levels of security. On-premises solutions offer greater control over security measures, which is an essential requirement for businesses and financial institutions. Additionally, on-premises solutions are customized to meet the unique needs of businesses and financial institutions, including integration with existing IT infrastructure and the ability to add or modify features as needed. For instance, in September 2020, ACI Worldwide announced its partnership with Mastercard to offer a wide range of real-time payment solutions supporting on-premises software for the central bank, government, and system operator-owned platforms.
Cloud-based solutions are anticipated to register the fastest CAGR in the real-time payments market during the forecast period. Cloud-based solutions are easily scaled up or down based on requirements, becoming ideal for businesses and financial institutions with fluctuating transaction volumes. Additionally, cloud-based solutions incorporate the latest technological advancements, such as machine learning and AI, to improve real-time payment processing and fraud detection. For instance, in March 2021, Banking Circle, a financial infrastructure provider, announced the enhancement of its cross-border payment platform through the integration with Microsoft Azure, a cloud platform, to provide real-time payment insights to clients.
By Payment Type
Based on payment type, the market is categorized into person-to-person, person-to-business, business-to-person, domestic peer-to-peer, and cross-border peer-to-peer. The person-to-business (P2B) payment type dominates the market owing to the increasing use of mobile devices to make payments for groceries, coffee, and meals. P2B payments are appropriate for such types of transactions, as P2B allows consumers to easily and quickly make payments to merchants using mobile devices. Additionally, the merchant acceptance of P2B payment types either through proprietary mobile payment apps or third-party payment providers including PayPal and Venmo is also driving the market growth. For instance, in July 2020, according to the statistics provided by Oberlo, mobile commerce sales were projected to reach USD 3.56 trillion in 2021, which was approximately 22.3% higher than the sales reported in 2020.
Person-to-person (P2P) payments are expected to register the fastest compound annual growth rate in the real-time payments market as P2P payments offer a convenient way for individuals to send and receive money using mobile devices. Additionally, P2P payments involve lower transaction fees compared to traditional payment methods such as wire transfers or money orders, hence becoming a more affordable option for consumers. For instance, in February 2021, MoneyGram International and Visa announced the launch of a real-time Peer-to-Peer (P2P) payment solution in Vietnam through Visa Direct. The solution enables customers from the U.S., U.K., and 18 other European countries to transfer money to Vietnam using Visa Direct.
By Enterprise Size
Based on enterprise size, the market is bifurcated into large enterprises and small & medium enterprises. The large enterprise-size segment dominates the market in 2022 and account for the maximum share of global revenue. Several businesses are making investments in real-time payment solutions to provide efficient payment processing. In addition, the rising demand for such solutions across large-scale retail stores to offer efficient and quick payment processing to customers is propelling the growth of the large enterprise.
Small & medium size enterprises (SMEs) are anticipated to witness the fastest CAGR during the coming years. Several SMEs across the world are transitioning from traditional paper-based invoicing to digital invoicing that is expected to boost market growth. In addition, small & medium enterprises are projected to adopt cost-saving technologies, such as cloud-based services, to grow in the industry. The aforementioned factors are expected to support the growth of the SME segment over the forecast period.
By Industry Vertical
The industry vertical segment is categorized into BFSI, IT & telecommunication, retail & e-commerce, healthcare, government, and others. The retail & e-commerce sector dominates the market as real-time payments improve the customer experience by providing a faster and more convenient payment method. Additionally, real-time payments reduce the risk of fraud by providing instant payment confirmation, and fraudulent transactions are detected and prevented in real time. For instance, in June 2022, ACI Worldwide announced the launch of ACI Worldwides Smart Engage to enhance the shopping experience for customers while boosting sales for merchants. Smart Engage is built on ACIs real-time payments platform, providing instant and secure payment processing capabilities.
The BFSI sector is predicted to witness the fastest CAGR as real-time payments allow for instant and secure money transfers between accounts, providing convenience for customers to send and receive payments. Additionally, real-time payments are used to pay bills instantly, helping customers to avoid late payment fees and penalties. The payment is processed in real-time, and the customer receives instant confirmation of the payment. Furthermore, banks across the globe are launching real-time payment solutions to enhance customer experiences. For instance, in November 2020, the Brazil Central Bank announced the launch of Pix, an instant payment platform for citizens, government, and private sector entities in Brazil. The instant payment system offers consumers and companies across Brazil greater flexibility to make money transfers 24/7.
By Region
Asia Pacific dominates the market in 2022 and accounted for the maximum share of the global revenue. The growing adoption of real-time payment solutions by large-scale as well as small & medium scale enterprises in Asia Pacific countries including India, Japan, and China is driving the regional market growth. Moreover, several enterprises across the Asia Pacific region are focusing on digitizing the business operations, which, in turn, is expected to boost the demand for real-time payment solutions. For instance, in April 2022, according to the (CEBR) Centre for Economics and Business Research, India accounted for the highest volume of real-time payments among businesses globally, with over 40% of all such payments made through 2021. India made 48.6 billion real-time payments through 2021 – which is around 2.6 times higher than China, which is in second place with 18 billion real-time transactions.
North America is anticipated to register the fastest CAGR due to the presence of key players including ACI Worldwide Inc., FIS Inc., Fiserv Inc., and MasterCard Inc. operating in the market. The major players are focusing on providing cloud-based or on-premises solutions to large enterprises to enable efficient and effective money transfers in real time. Additionally, the players are also focusing on expanding the product offerings to enhance customer experience which in turn is expected to drive market growth.
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| Corporate user | : $7460 |
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