The latest report published by Hamburg-based market intelligence firm yStats.com, “Global Real-Time Payments Market 2023” provides an in-depth view of the real-time payments market and the changes and developments taking place within the market. Some key findings of the report include forecasts of market size and net savings via real-time payments, plus the benefits and challenges arising due to the introduction of real-time payments.
Real-time payments grow gradually, with several countries developing their own real-time payment systems.
The post-pandemic world saw an increased reliance on digital modes of payment such as BNPL, one-click payments as well as real-time payments. By reducing the costs of transactions and increasing the success rate of payments, real-time transfers proved to be beneficial for consumers and businesses alike. Thus, the market size of real-time payments is forecasted to see a double-digit CAGR from 2022 through 2028, with the value reaching billions of euros by 2028, as spelled out by the new yStats.com report. Businesses worldwide are also realizing the importance of real-time payments and are investing heavily in upgrading their real-time payment infrastructure, with nearly three-quarters of large firms already using RTP considering their potential as highly important as of a July 2022 survey. During the same time period, more than two-thirds of firms stated plans to expand their real-time payment capabilities in the next 12 months. Real-time payments came into existence when Japan introduced its real-time payment system, Zengin in 1973, thus, though not an entirely new concept, the idea of real-time payments today is more modern and advanced due to its collaboration with open banking. Gradually, several countries especially Brazil, India, Singapore, and Australia, among others developed their own real-time payment systems. In this regard, India and Brazil have among the most successful real-time payment solutions as compared to other countries. Witnessing a forecasted double-digit CAGR through 2026, the number of real-time transactions in India will reach a triple-digit number in the billions by 2026. Furthermore, Unified Payment Interface (UPI), India’s real-time payment system grew consistently during H1 2022 in terms of volume and value of transactions, with value reaching certain trillions of euros as of June 2022, according to the new yStats.com report. Similarly, PIX in Brazil also gained consumer traction since its launch in November 2020. The 24/7 account-to-account instant transfer system offers convenience and affordability in transferring funds between businesses and consumers. The instant payment system can be used in stores, as well as for M-Commerce and E-Commerce purchases. Additionally, Thailand, the Philippines, Malaysia, Singapore, and Australia have also developed their own instant payment systems which are steadily showing signs of growth in terms of volume and value of transactions.
Although Europe sees slow growth in instant payment, countries are taking steps to encourage usage and adoption.
With countries such as India and Brazil leading in the pack in terms of adoption and usage of the real-time payment system, Europe in comparison witnesses slow growth of instant payment system. The payment ecosystem in Europe changed after the launch of SEPA in 2008 which ensured the smooth working of the payment landscape in the region. To encourage the growth of alternative payment methods such as real-time payments the ECB launched the TARGET Instant Payment Settlement Scheme and later the SEPA Instant. SEPA Instant has witnessed a different growth trajectory across Europe. For instance, Luxembourg, Malta, and Italy were the top 3 nations in Europe that saw the highest share of respondents claiming access to SEPA Instant, as per the new yStats.com report. While Greece accounted for the lowest share of respondents having access to SEPA Instant, Germany had the highest number of participants in both SEPA and SEPA Instant. Nevertheless, the number of real-time payment transfers in Germany is forecasted to grow at a double-digit CAGR between 2021 and 2026, reaching a number in billions as of 2026. Thus to encourage the adoption of SEPA Instant, the ECB has proposed all banks that offer SEPA to mandatorily offer SEPA Instant. Additionally, the real-time payment effort in Northern Europe is estimated to grow with the launch of P27 as of 2023. Denmark, Finland, and Sweden are the pioneers in the P27 initiative that is set to offer domestic as well as cross-border real-time transfer of funds thereby benefitting the entire Nordic region. The real-time payment system of Russia, SBP also showed constant progress in the volume and value of transactions from Q1 2021 to Q2 2022, according to the new yStats.om publication.
