Real-time Payments Market

Real-time Payments Market Outlook 2031:

The global real-time payments market size was valued at USD 16.56 Billion in 2022 and is projected to reach USD 201.61 Billion by 2031, expanding at a CAGR of 32.01% during the forecast period 2023 - 2031.  The growth of the market is attributed to the flexible real-time payments to businesses and consumers in receiving and sending payments.

Real-time payments help businesses in toughen their cash flows and in improving their budgeting, operational efficiencies, and overall cash management. Therefore, the increasing preference for this payment mode in businesses is largely influencing the market. According to a survey by ACI Worldwide, which is known for payment system, reported that approx. 76% of the merchants globally were expecting real-time payments to change with physical payment cards, in 2018.

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For instance, WiFi4EU, a free Wi-Fi initiative, is focused at promoting digitalization in Europe. WiFi4EU providing free Wi-Fi facilities in public spaces such as parks, hospitals, and public libraries. The project have received a budget of USD 142.3 million from 2018 to 2020 by the Connecting Europe Facility, an EU funding firm.

Payment-related frauds are increasing constantly all over the world. A consulting firm, Merchant Savvy which is based in the U.K., anticipating global losses from fraud to increase to over USD 39.20 billion by 2027, which is 25% more from those incurred in 2020. Whereas, the COVID-19 outbreak pandemic has positively influenced the market as people preferred contactless payment methods as part of the efforts to arrest the spread of coronavirus.

Refunds and disbursements was a constant problem for shoppers and vendors as it took some days to process the amount. Real-time payments solutions are largely adopted by various platforms such as BFSI, retail & internet business, and IT & telecom, owing to their benefits regarding security, speed, and transparency. The demand is consistently rising for better analytics for payment associated data from corporate and traders customers.

Real-time Payments Market Trends, Drivers, Restraints, and Opportunities

• Growing adoption for this payment mode among businesses is estimated to boost the  real-time payments market growth.
• Various governments across the globe are making efforts to encourage digital payments by providing subsidies to promote cashless payments. This is expected to fuel the  real-time payments market expansion.
• Continued supply of fiber optics networks and high-speed broadband services worldwide bodes are key factors driving for the growth of the market.
• Growing preference of smartphone-based payment solutions is one of the key elements to push the growth of the market.
• Banks and payment solution providers are forming partnerships as part of the promotion of smartphone-based payment solutions.
• Security concerns linked with real-time payments are estimated to restrain the real-time payments market growth.

Scope of Real-time Payments Market Report                               

The report on the global real-time payments market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Real-time Payments Market Segment Insights

P2B segment is expected to account for a key market share

Based on payment types, the global real-time payments market share is segmented into P2B, B2B, P2P, and Others. The P2B segment is expected to account for a key share of the market during the forecast period due to unabated growth of mobile commerce and e-commerce.

However, the P2P segment is anticipated to expand at a rapid pace during the forecast period as financial service providers and banking organizations are striking strategic partnerships to launch P2P payment solutions.

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Solutions segment is estimated to expand at a robust growth rate

Based on components, the market is bifurcated into solutions and services. The solutions segment is further differentiated into payment gateway, payment processing, and security & fraud management; while the services segment is further classified into advisory services, integration & implementation services, and managed services.

The solutions segment is estimated to expand at a robust growth rate in the coming years due to an increase in the number of online payments. Meanwhile, the services segment is projected to exhibit a high growth rate during the projected period owing to companies all over the world are focusing on mutual partnerships to minimize the risks of fraudulent transactions.

On-premise segment is projected to expand at a considerable CAGR

In terms of deployment, the market is bifurcated into cloud and on-premise. The on-premise segment is projected to expand at a considerable CAGR during the forecast period as adopting on-premise real-time payment solutions provide secured payment solutions to their customers.

On the other hand, the cloud segment is expected to account for a key market share in the coming years due to increasing adoption of mobile-based payment solutions across the world.

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Large enterprises segment is projected to register a high CAGR

In terms of enterprise sizes, the market is bifurcated into large enterprises and small & medium enterprises. The large enterprises segment is projected to register a high CAGR during the forecast period as businesses are investing in real-time payment solutions to secure efficient and convenient processing of payments.

Moreover, the small & medium enterprises segment is expected to account for a key share of the market in the coming years as these enterprises are increasingly transitioning from paper-based invoicing to digital invoicing. Simultaneously, payment partners are also pursuing various strategies.

Retail & e-commerce segment is anticipated to grow at a considerable rate

In terms of end-users, the real-time payments market is categorized into retail & e-commerce, BFSI, IT & telecom, travel & tourism, government, healthcare, energy & utility, and others. The retail & e-commerce segment is anticipated to grow at a considerable rate during the projected period due to increasing demand for prompt payment settlement from retailers and merchants.

Furthermore, the BFSI segment is anticipated to represent a substantial growth rate in the coming years owing to wide acceptance of the real-time payment across banks globally as solutions for enhancing customer experience.

Asia Pacific is anticipated to constitute a key market share

In terms of regions, the global real-time payments market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Asia Pacific is anticipated to constitute for a key share of the market during the projected period as the increasing adoption of real-time payment solutions by large as well as small and medium enterprises in the region.

On the other hand, the market of North America is anticipated to expand at a rapid pace during the forecast period owing to growing number of travelers visiting in North American countries such as Canada and the U.S.

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Segments

The global real-time payments market has been segmented on the basis of

Payment Types

• P2B
• B2B
• P2P
• Others

Components

• Solutions
  • Payment Gateway
  • Payment Processing
  • Security & Fraud Management

• Services
  • Advisory Services
  • Integration & Implementation Services
  • Managed Services

Deployment

• Cloud
• On-premise

Enterprise Sizes

• Large Enterprises
• Small & Medium Enterprises

End-users

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

Regions

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

Key Players

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

Competitive Landscape

Key players competing in the global real-time payments market are Mastercard Incorporated; ACI Worldwide, Inc.; Finastra; PayPal Holdings, Inc.; Visa Inc.; Fidelity National Information Services, Inc. (FIS Inc.); Fiserv, Inc.; Worldpay, Inc.; Wirecard AG; Temenos AG; Volante Technologies Inc.; and Montran Corporation.

The main market players are continuously focusing on several market development activities such as mergers and acquisitions, research and developments, investments for innovative products, and collaborations. For instance, PayPal Holdings, Inc. declared the acquisition of Simility, a network security solutions provider, in June 2018.