Global Real-Time Payments Market By Component (Solution and Services), By Payment Type (Person-to-Business (P2B), Business-to-Business (B2B), Person-to-Person (P2P) and Others), By Deployment Type (On-premise and Cloud), By End User (Retail & E-commerce, Government & Utilities, Healthcare, Telecom & IT, Travel & Hospitality, BFSI and Others), By Region, Industry Analysis and Forecast, 2020 - 2026
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The Global Real-Time Payments Market size is expected to reach $62.5 billion by 2026, rising at a market growth of 32.3% CAGR during the forecast period. Real-time payments are considered as electronic/digital payments that allow the rapid transfer of funds with the help of a safe payment gateway. Creating web-based businesses like the e-commerce segment and deployment of cell phones along with the increasing need for rapid and beneficial payment solutions in Small and Medium Enterprises (SMEs), are expected to boost the real-time payment market.
The real-time payments framework can significantly enhance the understanding of payments partners regarding disbursements and refunds as it was a constant problem for vendors and shoppers because it takes take some days to process and clear. Real-time payments solutions are majorly adopted by various ventures such as retail & internet business, BFSI, and IT & telecom, due to their benefits regarding speed, security, and transparency. Increasing demand for better analytics for payment associated information from traders and corporate clients is further fueling the growth of the market.
The market is majorly relied on the increasing usage of cell phones around the world and the emerging demand for rapid clearances and repayments of money transactions among vendors and buyers. Moreover, the increasing acceptance of real-time payment solutions by web-based business retailers and retail location owners are expected to boost the growth of the market. These solutions provide advantages such as rapid transaction speed in comparison with the majority of electronic techniques, real-time messaging, broad data transactions, and 24*7 accessibility to vendors and corporate organizations.
By Deployment Type
Based on Deployment Type, the market is segmented into On-premise and Cloud. The cloud segment would exhibit the highest growth rate during the forecast period. Mobile-based payment is increasingly adopted around the world, which is anticipated to push the segment growth in recent years. Emerging growth opportunities in the market are occurring due to the surge in the adoption of IoT-based payments. The constant introduction of smart city projects and the increasing unmanned retail stores are few of the significant factors that are boosting the segment’s growth.
Based on Component, the market is segmented into Solution and Services. In 2019, the real-time payments market was dominated by the solutions segment. Solution segment is further bifurcated across Payment Gateway, Payment Processing and Security & Fraud Management. Payment gateways collect payments on the basis of online payment portals and in-store gateways. Payment gateway service providers are specifically observing a surge in the number of online payments. The growth of the payment gateway segment is boosted by the rising inclinations of retailers towards payment gateways.
By Payment Type
Based on Payment Type, the market is segmented into Person-to-Business (P2B), Business-to-Business (B2B), Person-to-Person (P2P) and Others. The P2B acquired the highest market size in 2019. P2B payments are considered as monetary transactions between customers and businesses. The sustained development of mobile commerce and e-commerce is one of the primary aspects that are fueling the segment growth.
By End User
Based on End User, the market is segmented into Retail & E-commerce, Government & Utilities, Healthcare, Telecom & IT, Travel & Hospitality, BFSI and Others. The BFSI segment would exhibit promising growth during the forecast period. In order to improve the customer experience, banks around the world are introducing real-time payment solutions. For example, In August 2020, the Federal Reserve System launched FedNow Service’s details, a plan to create an instant payment framework in the U.S. The FedNow Service is anticipated to be introduced by 2023 or 2024. Therefore, this instant payment infrastructure will offer advantages to the U.S. communities in the next few years.
|Market size value in 2019||USD 10.6 Billion|
|Market size forecast in 2026||USD 62.5 Billion|
|Historical Period||2016 to 2018|
|Forecast Period||2020 to 2026|
|Revenue Growth Rate||CAGR of 32.3% from 2020 to 2026|
|Number of Pages||341|
|Number of Tables||563|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling, Competitive Analysis|
|Segments covered||Component, Payment Type, Deployment Type, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America region is anticipated to register a prominent growth rate over the forecast period. Various leading market players have their presence in North America. The increasing number of immigrants in North American countries like the U.S. and Canada is anticipated to raise the number of cross-border disbursements, hence boosting the regional market growth. The domestic and global players are putting heavy investments in order to enable real-time payments, thereby propelling the growth of the regional market.
Free Valuable Insights: Global Real-Time Payments Market to reach a market size of $62.5 Billion by 2026
KBV Cardinal Matrix - Real-Time Payments Market Competition Analysis
The major strategies followed by the market participants are Acquisitions and Partnerships. Based on the Analysis presented in the Cardinal matrix; Apple, Inc. is the major forerunner in the Real-Time Payments Market. Companies such as Fiserv, Inc., Temenos AG, and Visa, Inc., Finastra Group Holdings Limited, PayPal Holdings, Inc., Mastercard, Inc., Fidelity Information Services (FIS), Inc., ACI Worldwide, Inc. are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ACI Worldwide, Inc., Fidelity Information Services (FIS), Inc., Fiserv, Inc., Mastercard, Inc., PayPal Holdings, Inc. (eBay), Visa, Inc., Apple, Inc., Temenos AG, Capgemini SE, and Finastra Group Holdings Limited (Vista Equity Partners).
Recent Strategies Deployed in Real-Time Payments Market
» Partnerships, Collaborations, and Agreements:
- Jan-2021: Fiserv extended its partnership with PSCU, the nation’s premier payments Credit Union Service Organization. The extended agreement offers continuity for the credit unions. It also assists PSCU to carry on its innovation, as exemplified by successful early-market launches of contactless and digital issuance.
- Dec-2020: Mastercard partnered with Form3, the London cloud-processing platform. The partnership helped in improving and establishing real-time payments worldwide. It also enabled Form3 to boost its ambitions to increase on an international scale while achieving the services built for the future.
- Dec-2020: Temenos came into collaboration with Alpian SA, innovative Swiss financial services company. In this collaboration, Temenos SaaS technology-enabled Alpian to introduce its new bank and offered innovative banking services, customized to the mass affluent.
- Nov-2020: Mastercard joined hands with Payments Canada, an organization that operates a payment clearing and settlement system. In this collaboration, Payments Canada selected Mastercard’s Vocalink as the clearing and settlement solution provider for the country’s latest real-time payments system, the Real-Time Rail (RTR).
- Oct-2020: PayPal collaborated with Mastercard, an American multinational financial services corporation. Under this collaboration, both the companies extended their Instant Transfer service to Europe. By using Mastercard Send, Instant Transfer allows PayPal customers to cash out funds from their PayPal wallets to their Mastercard cards in real-time.
- Oct-2020: Visa collaborated with RBL Bank, an Indian private sector bank. Under the collaboration, RBL Bank introduced Visa Direct to facilitate immediate, real-time, and secure fund settlement on debit and credit cards. It further allows Visa to extend the reach of its real-time payments platform, Visa Direct, across India. The platform assists RBL Bank to build advanced tech-led banking solutions to address the developing requirements of its partners and merchants. It further helps Fintechs to make a world-class digital payments experience for their end customers.
- Oct-2020: Temenos entered into a collaboration with STCPay, a Saudi Arabian digital wallet. Under this collaboration, STCPay selected cloud-native, cloud-agnostic Temenos Payments, and Temenos Transact working on a private cloud to gain exponential growth and extend its digital payments capabilities. The Real-time, API-first Temenos Transact and Temenos Payments offers a single, digital platform on which STCPay significantly make and upgrade innovative digital services for retail customers.
- Sep-2020: ACI Worldwide entered into a partnership with Mastercard, the global multi-rail payments technology company. Together, the companies offer a broad range of real-time payment solutions worldwide. They jointly offer best-in-class central infrastructure, payments localization, and access solutions to central banks, scheme operators, financial institutions, payment service providers, and other companies introducing real-time payments initiatives.
- Sep-2020: ACI Worldwide collaborated with the State Bank of India. Under this collaboration, ACI Worldwide updated SBI's payment processing system. Bank of India utilizes the platform to acquire, route, authenticate, switch and authorize financial transactions over its ATM and eCommerce channels. The solution offers SBI’s ATM network to acquire Mastercard, Visa, and RuPay cards, control ATM/POS authorizations.
- Sep-2020: FIS collaborated with The Clearing House, a leader in payments advocacy. The collaboration aimed to provide real-time payment processing and settlement to small-to-mid-sized banks and credit unions and their customers. FIS’ real-time payments control service offers a complete, turn-key service for financial institutions to fastly and cost-effectively link to the RTP network, the real-time payment system in the United States provided by The Clearing House.
- Sep-2020: PayPal extended its partnership with Visa, an American multinational financial services corporation. The expansion aimed to expand real-time access to funds for consumers and small companies, which uses PayPal, Venmo, or Xoom for sending or receiving money. This partnership also expanded PayPal’s Instant Transfer service that uses Visa Direct for real-time1 payment capabilities, to global markets and allows faster domestic and cross-border digital payments.
- Jul-2020: Mastercard collaborated with SBM Bank India. Following the collaboration, the companies aimed to facilitate cross-border payments and remittances services. The SBM Bank India customers could make real-time domestic business-to-consumer transfers faster and more efficiently by utilizing Mastercard Send.
- Jul-2020: Visa came into collaboration with Moneris Solutions Corporation, a leading Canadian payment processor. Following the collaboration, Visa introduced a new offering to expand its Real-time Funds disbursement reach in Canada. The Real-time Funds solution from Moneris, powered by Visa Direct, Visa’s real-time push payments platform, assists Canadians to receive quick, simple, and safe disbursements directly into their bank accounts. With Visa Direct, Visa works with payment participants across the globe to provide a quick and transparent process of sending and receiving funds.
- Jun-2020: Visa collaborated with TerraPay, a global mobile-first payments service. Together, the companies aim to develop and offer payment solutions to boost financial inclusion and cashless transactions for domestic payments and global remittances. The partnership helped in the development of sustainable and scalable interoperable payment options.
- Mar-2020: Temenos partnered with ClearBank, the cloud-based clearing bank. The partnership aimed to offer banks with accessibility to UK payment systems and a quick route to market for effortless real-time payments services in the cloud. Together, the companies' joint customers benefit from a comprehensive, end-to-end service and swift access to real-time payments services that include CHAPS and Faster Payments, Bacs Payment Schemes Limited (Bacs), through ClearBank’s API-based services.
» Acquisition and Mergers:
- Jan-2021: PayPal took over the remaining 30 percent equity stake in GoPay, which is officially known as Guofubao Information Technology. In late 2019, PayPal acquired 70 percent of GoPay's stake. The acquisition made PayPal the first foreign payment platform to provide online payment services in China.
- Nov-2020: Visa acquired YellowPepper, a fintech pioneer with proprietary technology. The acquisition helped Visa to build their ‘network of networks’ strategy, by integrating Visa’s proven technology, processing, and security capabilities with the complementary solutions of YellowPepper. It ultimately helps in supporting the current and future requirements of governments, banks, and consumers across the world.
- Aug-2020: Apple took over Mobeewave, a startup with technology that could transform iPhones into mobile payment terminals. Mobeewave’s technology allowed shoppers to tap their credit card or smartphone on other phones to initiate a payment. This system runs with an app and doesn’t need hardware beyond Near Field Communications.
- Aug-2019: Mastercard acquired Nordic platform Nets, the account-to-account payment business of Nordic platform. Under this acquisition, Mastercard positioned itself at the forefront of the move to real-time payments and serves bulwark against the incursion of account-to-account payments into the credit card business. The acquisition involves clearing and quick payment services, and e-billing software of Nets’ Corporate Services business.
- Jul-2019: FIS completed its acquisition of Worldpay, a payment processing company. The acquisition aimed to make FIS a global leader in technology and solutions for banks, merchants, and capital markets. With the best portfolio of solutions for payments, banking, and capital markets, FIS is positioned to boost its growth and advance the way the world pays, banks, and invests.
- Feb-2019: ACI Worldwide took over Western Union's US bill pay business, Speedpay. The acquisition integrated its own UP Bill Pay platform with Speedpay making a unified solution capable of supporting billions of transactions.
- Dec-2018: Temenos acquired Avoka, a leader in digital customer acquisition and onboarding. The acquisition aimed to bring innovative capabilities to its Digital Front Office product that includes channels, analytics, origination, risk and compliance, payments, and real-time event-based marketing services that are used either on-premise or in the cloud.
- Sep-2018: Fiserv acquired Elan Financial Services, a unit of U.S. Bancorp. Following the acquisition, Fiserv strengthened its position in the area of debit card processing and extended its mobile and digital payments offering for consumers and businesses.
- Jun-2018: PayPal completed the acquisition of Simility, leading fraud prevention, and risk management platform. This acquisition broadened PayPal's fraud prevention and risk management portfolio for merchants and it also enabled merchants on the PayPal platform to get access to best-in-class fraud tools that can be customized to showcase the nuances of their businesses through their existing account management dashboard.
- Aug-2062.5: Fiserv took over Dovetail, cloud-based user research, and customer feedback platform. This acquisition offers the foundation for Fiserv to provide financial institutions a wider range of intelligent data and processing services.
- May-2062.5: Temenos completed its acquisition of Rubik Financial Limited, a leading software provider. The integration of Rubik and Temenos made a leader in the Australian market. It also enabled Temenos to benefit from the raised scale and to boost growth across its main target segments that include wealth, core and digital banking, and fund administration.
» Product Launches and Product Expansions:
- Oct-2020: Fiserv unveiled Advance Defense, a first-of-its-kind intelligent fraud detection solution. This solution was developed to help minimize fraud losses and maximize legitimate cardholder spend for a whole range of card types.
- Oct-2020: Temenos launched Temenos Transact Data Hub, a real-time data platform. The platform is integrated and implemented within Temenos Transact, the market-leading core banking solution. Temenos Transact Data Hub offers multiple essential data capabilities that are critical to the latest banks using the power of the data held within the core banking platform.
- Oct-2020: Finastra introduced Fusion Payments To Go, its payments solution focused on small and medium-sized banks looking to incorporate domestic and cross-border payment services in Europe, the US, and South Africa. The solution showed pre-packaged, with decreased fixed implementation costs, and rapid, safe, and scalable usage in the cloud on Microsoft Azure.
- Oct-2019: Fiserv launched CheckFree Next, an intelligent bill payment solution. CheckFree Next provides APIs, which empower financial institutions to efficiently offer the capabilities that customers expect. The solution allows financial institutions to carry on delivering compelling bill payment experiences in the rising competitive space.
- Aug-2019: Visa launched a suite of innovative security capabilities. These capabilities help in preventing and disrupting payment fraud, breaking the latest ground in cybersecurity and fraud prevention. The latest payment security services and capabilities assist in safeguarding the integrity of the payments ecosystem by identifying and disrupting fraud threats targeting financial institutions and merchants.
- Mar-2019: Apple introduced the Apple Card, an innovative, new kind of credit card. The card is designed to assist customers to lead a healthier financial life. Apple Card is embedded into the Apple Wallet app on iPhone, providing customers a friendly experience with Apple Pay and the ability to operate their card right on iPhone. Apple Card changed the whole credit card experience by simplifying the application process, eliminating fees, promoting customers to pay less interest, and providing a new level of privacy and security.
Scope of the Study
Market Segments Covered in the Report:
- Payment Gateway
- Payment Processing
- Security & Fraud Management
By Payment Type
- Person-to-Business (P2B)
- Business-to-Business (B2B)
- Person-to-Person (P2P)
By Deployment Type
By End User
- Retail & E-commerce
- Government & Utilities
- Telecom & IT
- Travel & Hospitality
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- ACI Worldwide, Inc.
- Fidelity Information Services (FIS), Inc.
- Fiserv, Inc.
- Mastercard, Inc.
- PayPal Holdings, Inc. (eBay)
- Visa, Inc.
- Apple, Inc.
- Temenos AG
- Capgemini SE
- Finastra Group Holdings Limited (Vista Equity Partners)
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Real-Time Payments Market Related Reports:
What would be the value of global real-time payments market by 2026?
The global real-time payments market size is expected to reach $62.5 billion by 2026.
What are the factors that anticipated to drive real-time payments market trends?
There are several reason that cause high demand of this market one of them is high adoption of smartphones globally.
Who are the leading players in real-time payments market?
ACI Worldwide, Inc., Fidelity Information Services (FIS), Inc., Fiserv, Inc., Mastercard, Inc., PayPal Holdings, Inc. (eBay), Visa, Inc., Apple, Inc., Temenos AG, Capgemini SE, and Finastra Group Holdings Limited (Vista Equity Partners).
At what CAGR is the real-time payments market estimate to grow in the forecast period?
The expected CAGR of real-time payments market is 32.3% from 2020 to 2026.
Which region dominated the real-time payments market in 2019?
The Real-Time Payments market was dominated by the Asia Pacific in 2019.
Which segment shows highest market share of the real-time payments market in 2019?
In 2019, the retail and e-commerce segment acquired the highest market share.