Real-Time Payments Market Size, Share & Trends Analysis Report By Payment Type, By Component, By Deployment, By Enterprise Size, By End-use Industry, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global real-time payments market size was valued at USD 10.64 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 33.0% from 2021 to 2028. The flexibility offered by real-time payments to consumers and businesses in making and receiving payments is expected to drive the growth. Real-time payments can also help businesses in strengthening their cash flows and subsequently in improving their operational efficiencies, budgeting, and overall cash management. Hence, the growing preference for this payment mode among businesses is particularly expected to drive the market growth. A survey conducted by ACI Worldwide, a payment system company, in 2018 revealed that 77% of the merchants worldwide are expecting real-time payments to replace physical payment cards.

Several governments across the world are trying aggressively to promote digital payments. They are also providing subsidies to encourage cashless payments. For instance, in December 2019, the Japanese government announced a subsidy for promoting cashless transactions in the country. The initiative envisages offering shopping points worth up to 5% of the shopping value to customers using cashless payment methods.

The continued rollout of fiber optics networks and high-speed broadband services worldwide bodes well for the growth of the market. Several governments across the world are investing aggressively in strengthening the fiber optics networks and rolling out high-speed broadband services. For instance, WiFi4EU, a free Wi-Fi initiative, is aimed at encouraging digital transformation within Europe. WiFi4EU envisages providing free Wi-Fi facilities in public spaces, such as hospitals, parks, and public libraries. The project has been allocated a budget of USD 142.3 million between 2018 and 2020 under the Connecting Europe Facility, an EU funding instrument.

The growing adoption of smartphone-based payment solutions is one of the major factors driving the growth of the market. Banks and payment solution providers are striking partnerships as part of the efforts to promote smartphone-based payment solutions. For instance, in August 2020, Google announced the extension of its partnership with banks in the U.S., such as Coastal Community Bank, BMO Harris, and First Independent Bank. The partnership envisages allowing customers to establish digital bank accounts through Google Pay and make transactions using smartphones.

However, security concerns associated with real-time payments are expected to restrain the growth of the market. Payment-related frauds are increasing significantly all over the world. Merchant Savy, a consulting firm based in the U.K., expects global losses from payment fraud to increase to USD 40.62 billion by 2027, up 25% from those incurred in 2020. On the contrary, the outbreak of the COVID-19 pandemic is anticipated to drive the growth of the market over the forecast period as individuals increasingly prefer contactless payment methods as part of the efforts to arrest the spread of coronavirus.

Payment Type Insights

The P2B segment dominated the market in 2020 and accounted for a share of more than 63.0% of the global revenue. P2B payments refer to monetary transactions between customers and businesses. The unabated growth of mobile commerce and e-commerce are is one of the major factors that are driving the growth of the segment. According to the statistics provided by Oberlo, a computer software company, mobile commerce sales amounted to USD 2.91 trillion in 2020, almost 25% higher than those reported in 2019.

The P2P segment is anticipated to register the fastest CAGR over the forecast period. Various banking organizations and financial service providers are striking strategic partnerships with third-party payment service solution providers to introduce innovative P2P payment solutions. For instance, in August 2020, CO-OP, a financial service provider, partnered with Zelle, a P2P payment service provider, to provide a streamlined P2P fund transfer platform for credit unions.

Component Insights

The solutions segment dominated the real-time payments market in 2020 and accounted for a share of more than 77.0% of the global revenue. The solutions segment has been further segmented into the payment gateway, payment processing, and security and fraud management. Payment gateways aggregate payments based on online payment portals and in-store gateways. Payment gateway service providers are particularly witnessing an increase in the number of online payments. For instance, in 2019, PayPal noted 277 million active PayPal accounts across the globe. According to the Europe Payments Council, 36% of the retailers across the U.S. were accepting PayPal as a payment method in 2019. The growing preference for payment gateways from retailers is driving the growth of the payment gateway segment.

Advances in technology coupled with the rapid growth of e-commerce are driving the need for solutions for payment security and fraud management. The e-commerce industry is expected to reach USD 6.54 trillion by 2024; and innovative, efficient, and secure payment security and fraud management solutions would be required to handle all the transactions across the e-commerce industry. As such, companies across the globe are striking mutual partnerships to mitigate the risks of fraudulent transactions. For instance, in July 2020, ACI Worldwide announced its partnership with Arvato Financial Solutions to undertake joint efforts to reduce the risk of e-commerce fraud in the wake of the outbreak of the COVID-19 pandemic.

Deployment Insights

The on-premise segment dominated the market in 2020 and accounted for a share of more than 61.0% of the global revenue Businesses across the world are adopting on-premise real-time payment solutions to provide secured payment solutions to their customers. For instance, in November 2019, ACI Worldwide announced a strategic collaboration with Microsoft. The collaboration envisages ACI Worldwide delivering its universal payment technology through Microsoft Azure.

The cloud segment is anticipated to register the fastest growth over the forecast period. The increasing adoption of mobile-based payment solutions across the globe is driving the growth of the segment in current days. The rise in the adoption of IoT-based payments is also expected to create new opportunities for market incumbents over the forecast period. According to the Payments Journal, IoT-based payments amounted to USD 5.76 billion in 2019 and are anticipated to reach USD 7.56 billion by 2024. The continued rollout of smart city projects and the growing number of unmanned retail stores are some of the major factors that are driving the growth of the segment.

Enterprise Size Insights

The large enterprises segment dominated the market in 2020 and accounted for a share of more than 66.0% of the global revenue. Businesses are investing aggressively in real-time payment solutions to ensure efficient and convenient processing of payments. The growing preference for digital payment solutions among big retail stores to ensure a convenient checkout experience for their customers is particularly propelling the growth of the segment. At the same time, large enterprises are investing in startups across emerging countries such as China, India, among others for expanding their regional presence.

The small and medium enterprises segment is anticipated to register the fastest growth over the forecast period. Small and medium enterprises are aggressively transitioning from paper-based invoicing to digital invoicing. At the same time, payment partners are also pursuing various strategies, including mergers and acquisitions and strategic partnerships, to help small and medium enterprises in digitizing their payment systems. For instance, in October 2019, BlueSnap, a payment technology company, announced the acquisition of Armatic, a provider of invoicing automation solutions. The acquisition would allow BlueSnap to deliver enhanced digital payment solutions.

End-use Industry Insights

The retail and e-commerce segment dominated the market in 2020 and accounted for a share of more than 34.0% of the global revenue. The growing demand for instant payment settlement from merchants and retailers has triggered the adoption of real-time payment solutions. Real-time payment solutions can potentially provide a competitive edge to retailers by offering them an efficient and affordable mode of payments. The growing preference for mobile-based shopping worldwide is also emerging as one of the major factors driving the growth of the market.

The BFSI segment is anticipated to register the fastest growth over the forecast period. Banks across the world are launching real-time payment solutions for enhancing customer experience. For instance, in August 2020, the Federal Reserve System announced FedNow Service's details, a plan to develop instant payment infrastructure in the U.S. The FedNow Service is expected to be launched by 2023 or 2024. This instant payment system will thereby provide benefits to the U.S. communities in the coming years.

Regional Insights

Asia Pacific dominated the market in 2020 and accounted for a share of over 38.0% of the global revenue. The growing adoption of real-time payment solutions by large as well as small and medium enterprises in the region is expected to drive the growth of the Asia Pacific regional market. Continued economic development and digitalization are some of the major factors that are anticipated to propel the growth of the regional market. Enterprises in Asia Pacific are putting a strong emphasis on digitalizing their business operations and increasing their IT budget and technology spending, which is expected to create growth opportunities for the regional market.

North America region is expected to witness steady growth during the forecast period. North America is home to several prominent market players. The growing number of immigrants in North American countries such as the U.S. and Canada is expected to increase the number of cross-border disbursements, thereby driving the country’s market growth. The aggressive investments being made by domestic as well as international players in enabling real-time payments are driving the growth of the regional market.

Key Companies & Market Share Insights

The market is highly fragmented in nature. Prominent market players are pursuing various strategies, such as strategic joint ventures and partnership agreements, product innovation, R&D initiatives, geographical expansion, and mergers and acquisitions, to cement their foothold in the market. They are particularly focusing on providing cloud-based or on-premise real-time payment solutions to large enterprises. These solutions can potentially help enterprises in realizing efficient and effective money transfers in real-time.

Vendors are also focusing on expanding their product offerings for enhancing customer experience. For instance, in June 2018, PayPal Holdings, Inc. announced the acquisition of Simility, a provider of network security solutions. The acquisition would help PayPal Holdings, Inc. in expanding its risk management and fraud prevention product portfolio. Some prominent players operating in the real-time payments market include:

• ACI Worldwide, Inc.

• Mastercard Incorporated

• Finastra

• Visa Inc.

• PayPal Holdings, Inc.

• Fiserv, Inc.

• Fidelity National Information Services, Inc. (FIS Inc.)

• Wirecard AG

• Worldpay, Inc.

• Temenos AG

• Montran Corporation

• Volante Technologies Inc.

Real-Time Payments Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the real-time payments market report based on payment type, component, deployment, enterprise size, end-use industry, and region.

• Payment Type Outlook (Revenue, USD Million, 2016 - 2028)

  • P2B

  • B2B

  • P2P

  • Others

• Component Outlook (Revenue, USD Million, 2016 - 2028)

  • Solutions

    • Payment Gateway

    • Payment Processing

    • Security & Fraud Management

  • Services

    • Advisory Services

    • Integration & Implementation Services

    • Managed Services

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2028)

  • Large Enterprises

  • Small & Medium Enterprises

• End-use Industry Outlook (Revenue, USD Million, 2016 - 2028)

  • Retail & E-commerce

  • BFSI

  • IT & Telecom

  • Travel & Tourism

  • Government

  • Healthcare

  • Energy & Utility

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Sweden

    • Denmark

    • Switzerland

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

  • South America

    • Brazil

    • Argentina

  • Middle East & Africa