ACI Worldwide has released a report, titled 'Global Real-Time Payments Growth: Sustainable Trends and Emerging Markets'

2024-11-23 08:56:49 News & Society

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India, May 3, 2024: Global real-time payments growth has reached sustainable levels with 266.2 billion real-time payments transactions recorded in 2023 - a year-over-year (YoY) growth of 42.2% - according to the 2024 Prime Time for Real-Time report, published by ACI Worldwide (NASDAQ: ACIW), a global leader in mission-critical, real-time payments software, in partnership with GlobalData, a leading data and analytics company.

While previous reports highlighted the economic benefits of real-time payments and consumer uptake around the world, this year's report - now in its fifth edition - takes a deep dive into some of the world's leading real-time payments markets, highlighting the factors that have enabled those countries to build successful end-to-end real-time payments ecosystems. The report also reveals that many of the newer market entrants around the globe are quickly catching up, with lawmakers and central banks around the world pushing for adoption, determined to reap the economic benefits of real-time payments and drive financial inclusion for their citizens.

Key Findings at a Glance

Globally, 575.1 billion real-time transactions are forecast by 2028, representing a 2023-2028 compound annual growth rate (CAGR) of 16.7%. By 2028, real-time payments are expected to account for 27.1% of all electronic payments globally.
India continues to dominate the global real-time payments market, with 129.3 billion transactions in 2023 - more than the rest of the world's top 10 real-time payments markets combined. Of all electronic payments made in India, 84% are now real-time.
Brazil saw a remarkable YoY growth of 77.9% in 2023, with 37.4 billion real-time payments transactions. Brazil is the undisputed real-time payments leader in Latin America, responsible for 75% of all transactions in the region. Other Latin American countries are pushing ahead with real-time payments modernization initiatives, looking to replicate Brazil's success. Peru and Colombia are predicted to have the highest 2023-2028 CAGRs in the region, with 51.2% and 42.6%, respectively.
Asia Pacific (APAC) is the largest real-time payments market, with 185.8 billion transactions in 2023, representing 24.0% of all electronic payments in the region. With four of the top five real-time payments markets by volume, the APAC region is projected to see over 351.5 billion real-time transactions by 2028, a 2023-2028 CAGR of 13.6%.
The Middle East is the fastest-growing real-time payments market globally. Oman, Kuwait and Qatar all launched schemes in 2023, joining more established regional players like Saudi Arabia, Bahrain and UAE. The 2023-2028 CAGR for the region is 28.8% - transactions are expected to rise from 855 million to 3.0 billion by 2028.
The European Union (EU) Instant Payments Regulation, passed in February 2024, is expected to drive instant payments volume across the Single Euro Payments Area, including the 27 EU member states. By 2028, instant payments are forecast to account for 13% of all electronic payments in Europe, up from 8% in 2023.
North America is a major growth market to watch - primarily due to the launch of the FedNow service in the U.S. in 2023 - with a projected 2023-2028 CAGR of 27.1%.
Nigeria is the undisputed real-time payments leader in Africa, another major growth market. The country recorded 7.9 billion transactions in 2023; real-time payments had an impressive 82.1% share of all electronic payments in 2023.

"This year's report highlights the key success factors that have allowed some countries to forge ahead with real-time payments modernization and reap enormous benefits for consumers and businesses," said Craig Ramsey, global head of real-time payments, ACI Worldwide. "Modern real-time payments require collaboration, and they encourage a new generation of market entrants for banks to either compete or cooperate with - often both. The world's most successful real-time payments schemes, notably those in India and Brazil, also feature use cases that have proved popular beyond imagination."

"Real-time payments - and especially cross-border payments -are the future. They remove payments friction, provide greater liquidity in the financial system, and ultimately drive economic growth and financial inclusion," said Debbie Guerra, chief product officer, ACI Worldwide. "Banks should consider whether they are truly maximizing the real-time rails in their market, and whether limiting their commitment to the minimum also means limiting their potential share of the future of payments."