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Real-Time Payments: Digital Payments in a Real-Time World

Financial institutions are benefiting significantly from technological advancements across the payments value chain. Modernizing payments and moving to real-time has become a top priority for financial institutions.

Real-time payments refer to transferring money quickly and instantly confirming between individuals, businesses, and governments. RTPs are faster and more consistent than conventional methods, taking days to reach a recipient. RTP systems can achieve better speed, rich context, connectivity, and security with the arrival of new-age technologies like 5G, blockchain, and IoT.

By enhancing liquidity, RTPs can improve cash management and help businesses navigate day-to-day operations more efficiently. This improved liquidity can positively impact cash flow, especially for smaller businesses used to waiting days for payment.

Market share of Real-Time Payments:

The global real-time payments market is estimated to be US$ 10.8 billion in 2022 and is expected to reach US$ 119.0 billion by 2031 at a CAGR of 30.5%

Key Market Insights:

  1. Based on Component: The solutions segment is expected to dominate the market, contributing a revenue share of 85.2% by 2031.
  2. Based on End-Use Industry: The retail & e-commerce segment is projected to reach US$ 59.7 Mn by 2031 at a CAGR of 35.8%.
  3. Based on Region: Asia Pacific is expected to dominate the market, contributing a revenue share of 66.0% by 2031.

Real time payments market share by End-Use Industry

 

Factors driving the growth of this market:

  • Technology innovation:
    • The rapid adoption of smartphones and cloud-based technologies for quicker payments.
    • The use of cutting-edge technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) in digital payment systems is projected to boost demand for real-time payment solutions.
  • Customer Expectations: Customers’ increased demand for quicker settlements and increasing investments from financial institutions and governments to promote the adoption of real-time payment systems are likely to boost the market forward.
  • Globalization: As more nations adopt real-time payments, the pressure on other countries to build infrastructure and facilitate real-time payments is expected to grow.

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