Real Time Payments Market by Component, Deployment, and Geography - Forecast and Analysis - 2023-2027

Real Time Payments Market Size 2023-2027

The Real Time Payments market size is forecast to increase by USD 55.54 billion at a CAGR of 31.35% between 2022 and 2027. Market growth hinges on several pivotal factors: the widespread adoption of smartphones and easy access to high-speed internet, escalating demand for payment solutions among both customers and merchants, and proactive government initiatives aimed at boosting digital payment adoption. These elements collectively propel the market forward by facilitating seamless and efficient transactions in the digital realm. The surge in smartphone usage and internet connectivity fosters a conducive environment for digital payment systems to thrive. Additionally, heightened demand from diverse customer segments and businesses underscores the importance of convenient, secure, and versatile payment options, further fueling the market's expansion. Government support further solidifies this growth trajectory, encouraging broader acceptance and integration of digital payment solutions across various sectors and industries.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by component (solutions and services), deployment (on-premises and cloud), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

The market is driven by a surge in smartphones usage and the growing adoption of cloud-based solutions by Financial institutes worldwide. Incorporating Artificial Intelligence (AI) and IoT technologies has become a trend to enhance payment processing efficiency. Initiatives like the Cashless Japan initiative and the rollout of 5G networks are shaping the landscape, empowering Fintech companies and facilitating P2B and P2P segments with solutions such as Visa Direct and payment gateways. However, challenges like security & fraud management and adapting to evolving digitization trends pose ongoing hurdles for the market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increasing adoption of smartphones and access to high-speed internet is notably driving the market growth. In recent years, smartphone usage has drastically increased in nations like Canada, China, and India. The widespread use of 3G and 4G connectivity has made it simple for customers to make payments on their mobile devices.  Additionally, the adoption of the 5G network is growing in North America, APAC, Europe, and the Middle East, which is boosting the expansion of the real-time payments sector.

In addition, the proliferation of distribution networks for smartphone companies has increased the accessibility of smartphone hardware for end users. For instance, Guangdong Oppo Mobile Telecommunications Corp., Ltd (OPPO), Xiaomi Corp (Xiaomi), Samsung Electronics Co Ltd (Samsung), and several others are significant mobile phone brands in rural India because they provide the rural population with access to payments through their mobile phones. These elements will fuel the market's expansion during the prediction period.

Significant Market Trends

Rapid digitalization in the payments sector is the primary trend in the market. In the post-pandemic society, digital currencies, biometrics, and real-time payments are becoming more popular and widely accepted by customers in an effort to reduce the demand for cash. Furthermore, technology is expanding to new use cases as its adoption continues to provide contactless payment choices for restaurants and retailers.

Moreover, dynamic real-time payment credit has also allowed retailers to scan customer codes, where the system detects fraud automatically. As a result, the worldwide real-time payments industry could see growth as a result of the increase in developments and efforts toward digitalized payments. Such factors are expected to fuel the growth of the market during the forecast period.

Major Market Challenge

The rise in data breaches and security issues while conducting payments is the major challenge impeding market growth. Innovative payment methods offer customers a number of advantages and conveniences. However, the surge in security issues and data breaches is impeding market expansion. Because they are worried that unauthorized mobile service providers will have access to their financial information, consumers are reluctant to use real-time payment networks to complete transactions.

Furthermore, it is anticipated that the risk of identity theft and data breaches will increase in the coming years. This is a result of using public Wi-Fi, weak passwords, and phishing attacks. Additionally, con artists use their own codes to replace real-time payments at merchant outlets, prompting customers to pay scammers instead of legitimate businesses. During the forecast period, these issues are anticipated to impede market growth.

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Volante Technologies Inc. - The company offers clearing real-time payment network services as its key offerings, which provide consumers and businesses with the ability to conveniently send payments directly from their accounts to receiver deposit 24 by 7. The company also offers cloud payments and financial messaging solutions under its unified segment.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• ACE Software Solutions Inc.
• ACI Worldwide Inc.
• Ant Technology Group Co. Ltd.
• Apple Inc.
• Cognizant Technology Solutions Corp.
• Fidelity National Information Services Inc.
• Finastra
• Fiserv Inc.
• Icon Solutions Ltd.
• Mastercard Inc.
• Microsoft Corp.
• Mindgate Solutions Pvt. Ltd.
• Montran Corp.
• PayPal Holdings Inc.
• Ripple Labs Inc.

Qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market exhibits a dynamic landscape with various segments and solutions contributing to its growth and evolution. One pivotal aspect is the distinction between the On-premise segment and the Cloud segment, where businesses can choose between localized infrastructure and cloud-based solutions for their payment processing needs. The proliferation of Smartphones has been a catalyst, driving the demand for Cloud-based solutions and fostering digitization across various industries. Financial institutions are leveraging Artificial Intelligence (AI) and IoT technologies to enhance payment efficiency and security, spurred by initiatives like the Cashless Japan initiative and the advent of 5G networks. Fintech companies are instrumental in shaping the P2B segment and P2P segment, with entities like Oberlo and MoneyGram International facilitating seamless transactions. Payment solution providers such as Visa and Visa Direct are at the forefront, offering comprehensive solutions encompassing payment gateway and payment processing capabilities with a strong focus on security & fraud management.

The market share growth of the solutions segment will be significant during the forecast period. Payment gateway solutions are an advanced digital payment acceptance platform that processes transactions between the customer/merchant and the bank/processors in real time in a highly secure and safe method. The widespread use of the Internet and its cheaper cost have strengthened the digital and technological trend among consumers and altered the business models for logistics, banking, education, agriculture, retail, and health care. As a result, digital payments have dramatically increased across a variety of business sectors globally.

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The solutions segment was valued at USD 5.32 billion in 2017 and continued to grow until 2021. Companies in this market are integrating customer relationship management (CRM) to understand consumers spending behavior and spending patterns. This analytical approach may help consumers increase their production efficiency with feature-rich options. Such factors are expected to drive the growth of the solutions segment in the global market during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In terms of real-time payments, APAC is the fastest-growing region. This is a result of real-time payments becoming more prevalent in APAC because of the growing popularity of mobile wallets like Apple Pay and Samsung Pay. Additionally, the growth in the contactless payment trend during the pandemic promoted the use of real-time payment methods, including NFC and rapid response (QR) codes. Major growth factors for the regional market include the convenience offered by real-time payments, including quicker service and check-out times at cafes, drive-throughs, and casual dining restaurants, as well as access to coupons, offers, and rewards in the payment experience.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.

• Component Outlook 
  • Solutions Deployment
  • Services

• Deployment Outlook 
  • On-premises
  • Cloud

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing a significant upsurge driven by cloud-based solutions and artificial intelligence (AI) advancements. Financial institutes are leveraging IoT technologies to enhance their services, particularly with the widespread digitization spurred by initiatives like Japan's Cashless Japan initiative. Fintech companies are innovating in the P2B and P2P segments, with major players like MoneyGram International and Visa Direct leading the way in payment processing and security & fraud management.

Moreover, key players like Shopify, Alibaba Group Holding Ltd, and Microsoft Azure are shaping the landscape, especially in the e-commerce sector. On-premise and cloud segments offer different advantages, catering to diverse needs in banking and retail & e-commerce. Real-time transaction processing, payment device flexibility, and reduced transaction time are among the benefits driving adoption, particularly in developing economies and among the middle-class segment. Tech-savvy younger generations are driving demand, prompting developments in deployment mode, enterprise size, and vertical-specific solutions, Payment processing solution, like payment gateway solutions and payment processing solutions. Overall, the market is witnessing rapid growth fueled by technological advancements and strategic initiatives across various sectors.

Furthermore, the market is undergoing a transformative phase with the emergence of various segments and solutions catering to different needs. The P2B segment is witnessing increased traction, especially with platforms like Oberlo facilitating seamless transactions between businesses. Likewise, the P2P segment is gaining prominence, with companies like ClearSale LLC offering secure payment solutions for peer-to-peer transfers. In terms of infrastructure, both the on-premise and cloud segments are crucial, providing diverse options for Banking Circle and other institutions to manage real-time payment processes efficiently. These solutions cater to a wide range of businesses, including large enterprises and Small- and Medium-sized Enterprises (SMEs) operating in the Retail & e-commerce segment.

Market Scope
Report Coverage	Details
Page number	153
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 31.35%
Market growth 2023-2027	USD 55.54 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	29.0
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 44%
Key countries	US, Canada, Thailand, Singapore, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	ACE Software Solutions Inc., ACI Worldwide Inc., Ant Technology Group Co. Ltd., Apple Inc., Cognizant Technology Solutions Corp., Fidelity National Information Services Inc., Finastra, Fiserv Inc., Icon Solutions Ltd., Mastercard Inc., Microsoft Corp., Mindgate Solutions Pvt. Ltd., Montran Corp., PayPal Holdings Inc., Ripple Labs Inc., Sila Inc., Tata Consultancy Services Ltd., Temenos Headquarters SA, Visa Inc., and Volante Technologies Inc.
Market dynamics	Parent market analysis, Market forecasting, market research and growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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