Real-time Payments Market

Real-time Payments Market: Current Market Size and Share

real-time payments market is expected to reach a market size of ~USD 55 billion by 2026, growing at a CAGR of +29% during the forecast period

The market growth is driven by the increasing adoption of smartphones, the rise in digital payment transactions, and the growing need for faster and secure payment options. Additionally, the increasing government initiatives for the development of digital payment infrastructure and the growing number of collaborations and partnerships among key players are expected to fuel market growth in the coming years.

The Asia-Pacific region dominates the real-time payments market, accounting for the largest market share in 2021. The region's dominance is attributed to the high adoption of mobile payments, government initiatives for the development of digital payment infrastructure, and the increasing number of collaborations among key players. Furthermore, the region's increasing population and the growing adoption of smartphones are driving the demand for real-time payment solutions.

Key Players-

• ACI Worldwide, Inc.
• Fidelity National Information Services, Inc. (FIS Inc.)
• Finastra
• Fiserv, Inc.   
• Mastercard, Inc.
• Montran Corp.
• PayPal Holdings, Inc.
• Temenos AG
• Visa Inc.
• Volante Technologies Inc.
• Wirecard AG
• Worldpay, Inc.

Segmentation-

By Payment Type

• P2B
• B2B
• P2P
• Others

By Component

• Solutions
• Payment Gateway
• Payment Processing
• Security & Fraud Management
• Advisory Services
• Integration & Implementation Services
• Managed Services
• Services

By Deployment

• Cloud
• On-premise
• By Enterprise
• Large Enterprises
• Small & Medium Enterprises

By End-use Industry

• Retail & E-commerce
• BFSI
• IT & Telecom
• Travel & Tourism
• Government
• Healthcare
• Energy & Utilities
• Others

Major Trends and Drivers Affecting the Industry-

The real-time payments market is witnessing several trends and drivers that are expected to shape the market in the coming years. The increasing adoption of smartphones and the growing number of digital payment transactions are driving the demand for real-time payment solutions. Additionally, the growing need for faster and more secure payment options is expected to fuel market growth. The rise of e-commerce and the increasing popularity of mobile banking are also contributing to market growth.

Moreover, the increasing government initiatives for the development of digital payment infrastructure and the growing number of collaborations and partnerships among key players are expected to drive market growth in the future. Furthermore, the growing use of blockchain technology in the payment industry is expected to revolutionize the real-time payments market.

Opportunities in the Real-time payments market-

The real-time payments market is expected to grow rapidly in the coming years due to several factors. Firstly, the increasing adoption of smartphones and the rise of mobile banking have made it easier for individuals to make real-time payments from their mobile devices. Secondly, the growth of e-commerce and online shopping has led to an increase in demand for real-time payments, as customers expect to be able to pay for goods and services instantly. Thirdly, the COVID-19 pandemic has accelerated the shift towards digital payments, as people have been encouraged to avoid physical contact and use contactless payment methods instead.

Threats in the Real-time payments market-

Despite the opportunities, there are also several threats that could hinder the growth of the real-time payments market. One of the biggest threats is the security of the payment system, as real-time payments require sensitive financial information to be transmitted online. Any security breaches or cyber attacks could undermine customer trust and lead to a decline in adoption. Secondly, the regulatory environment can also pose a threat to the real-time payments market. Governments may impose regulations that limit the growth of real-time payments, or banks may choose to adopt their own payment systems instead of using third-party providers.

Regulatory and Legal issues affecting the Real-time payments market-

The real-time payments market is subject to various regulatory and legal issues that could impact its growth. One of the most significant issues is compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. These regulations require payment providers to verify the identities of their customers and monitor transactions for suspicious activity. Failure to comply with these regulations can result in fines and reputational damage. Another issue is data privacy and protection, as real-time payments require the transfer of sensitive financial information. Governments may impose regulations that require payment providers to protect customer data or face penalties.

Target demographics of the Real-time payments market-

The real-time payments market targets a diverse range of demographics, including individuals, small businesses, and large corporations. Millennials and Gen Z are more likely to adopt real-time payments due to their familiarity with mobile devices and their preference for instant gratification. Small businesses may benefit from real-time payments as it enables them to manage their cash flow more efficiently and reduce the risk of non-payment. Large corporations may adopt real-time payments as a way to streamline their payment processes and reduce costs.

Pricing trends in the Real-time payments market-

The pricing trends in the real-time payments market vary depending on the payment provider and the type of transaction. Some payment providers may charge a flat fee per transaction, while others may charge a percentage of the transaction value. Additionally, some providers may offer discounts for high-volume transactions or for customers who use their payment system exclusively. The pricing of real-time payments may also vary depending on the geographic location of the transaction, with some providers charging more for cross-border payments.

Conclusion in the Real-time payments market-

The real-time payments market is a rapidly growing industry with significant growth opportunities for players in the market. The increasing adoption of mobile payments and digital wallets, the growing demand for cross-border payments, and the expansion of the market to include older demographics are some of the major trends and drivers of the industry. However, the industry also presents several challenges, including the threat of cyberattacks and fraud and the need to comply with regulatory and legal requirements. Players in the market must take measures to ensure the security and privacy of customers' financial information and comply with regulations such as PSD2. Overall, the real-time payments market is expected to continue to grow at a significant pace in the coming years, driven by the increasing demand for fast, convenient, and secure payment methods. As the market continues to evolve, players in the industry must adapt and innovate to stay ahead of the competition and meet the evolving needs of customers.