New sophisticated use cases for consumers and businesses are driving global Real-Time Payments (RTP) volumes to record highs, with 195.0 billion RTP transactions recorded globally in 2022 — a YoY growth of 63.2% — according to the 2023 Prime Time for Real-Time report, published by ACI Worldwide in partnership with GlobalData.
The report said 511.7 billion real-time transactions globally are forecast by 2027, representing a 2022-2027 compound annual growth rate (CAGR) of 21.3%.
By 2027, RTPs are expected to account for 27.8% of all electronic payments globally.
The report added that India remains the undisputed RTP leader, with a staggering 89.5 billion transactions in 2022 and a YoY growth rate of 76.8%. India accounted for 46% of all global real-time transactions in 2022.
Brazil was the third fastest-growing RTP market in 2022, with a YoY growth of 228.9%, and is in second place in transactions, with 29.2 billion in 2022, representing 15% of all global real-time transactions.
China, Thailand and South Korea are third, fourth and fifth, respectively, on the list of the top RTP markets, with 17.6B, 16.4 billion and 8 billion transactions, respectively, in 2022.
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Middle East Africa South Asia (MEASA) is the fastest-growing market globally due to the might of India.
MEASA is a huge and diverse RTP market, with India as the world’s undisputed RTP leader, the Middle East as one of the fastest growing regions, and Africa as a key growth market to watch.
The region saw 95.7 billion RTP transactions in 2022, mainly due to India’s dominant role. RTP transactions are expected to grow to 250 billion by 2027, a CAGR of 21.2%.
In 2022, 46% of all global RTP transactions originated in India. Volumes reached a new high of 89.5 billion in 2022, representing 81% of electronic payments in India. They are forecast to grow at a CAGR of 21.3% between 2022 and 2027.
The Middle East is the fastest-growing RTP market globally. RTP transactions are expected to grow from 675 million in 2022 to 2.6 billion by 2027, a CAGR of 30.6%.
Saudi Arabia is currently the biggest RTP market in the Middle East, followed by Bahrain.
Bahrain is the global leader in consumer adoption, forecast to have 84 RTP transactions per head of population per month by 2027.
Governments and regulators in the Middle East are setting new mandates for adoption. Several countries — including U.A.E., Qatar, Kuwait and Oman — are expected to launch domestic RTP schemes soon, with innovative features and overlay services high on the agenda.
Nigeria is one of the top 10 RTP markets globally, and South Africa is Africa’s second biggest market, having launched RTPs in March 2023. This vast and rapidly growing continent is full of opportunities for RTPs, with many African countries planning to develop and launch domestic RTP schemes.
Governments and regulators are taking notice of consumer adoption
With consumers and businesses around the world demanding cheaper, faster and more efficient ways to pay, and merchant acceptance of RTPs on the rise, consumer and business adoption via popular new use cases is heating up, the report highlighted.
“Real-time payments are the future of modern, digital economies. Governments and regulators around the world are beginning to understand this and increasingly see them as a path to drive economic growth and financial inclusion,” said Thomas Warsop, interim president and CEO, ACI Worldwide.
“Real-time payments will help to secure the competitiveness of banks and financial services providers. They remove payment friction, contribute to greater liquidity and ultimately increase customer stickiness. They complement the holistic digital proposition of modern financial institutions.
“Banks should evaluate whether they are truly maximising existing real-time rails in their market. Ultimately, the extent to which they make real-time payments part of their offering is a strategic decision. It seems increasingly clear, however, that limiting their commitment to the minimum also means limiting their potential share of the future payments market,” Warsop added.
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