The global Real-Time Payments (RTP) market size was valued at 6.90 billion in 2018 and is projected to expand at a CAGR of 29.3% from 2019 to 2025. RTPs are defined as electronic/digital payment solutions that enable real-time or immediate clearing of transactions and crediting of funds to the payee’s account and subsequent confirmation to the payer. Convenience along with faster availability of funds and receipt of money transfer offered by these systems is gaining popularity among end-users, as well as service providers.
The market is majorly driven by the rising usage of smartphones across the globe and growing demand for immediacy and quick clearings and settlements of money transfers among consumers and merchants. Additionally, rising adoption of RTP solutions among e-commerce retailers and retail store owners is estimated to bolster the market growth. These solutions deliver benefits, such as faster transaction speed as compared to most other electronic methods, real-time messaging, extensive data exchange, and 24/7/365 availability to merchants and corporate businesses.
With such features, RTP solutions can help enterprises enhance their operational efficiencies, customer engagement, cash flow, and improve the transparency and accuracy of payment-related data. Moreover, RTP provides an opportunity for enterprises to shift from legacy systems to a modern payment infrastructure that can support multi-currency transaction processing, as well as provide fraud prevention solutions, while reducing the overall processing time. Besides, governments from countries, such as India, UK, and US, are collaborating with multiple stakeholders including most of the government departments, state/central ministries, and banks to create an ecosystem promoting digital transaction.
Furthermore, rising volumes of cashless transactions (reached more than 500 billion in 2018), coupled with the growing consumer preference for systems like online and mobile banking, will boost market growth. The market is also likely to benefit from the growing popularity of FinTech services, such as Google Pay, Samsung Pay and Apple Pay. In addition, rising collaborations of these services/service providers with regional banks to bring innovations, such as the provision of quick loans and cashless payments, will drive the market further.
Increasing focus of governments on developing their own RTP systems across each country, such as Swish in Sweden, Faster Payments in UK, and FAST in Singapore, is estimated to augment market growth. However, rising cybersecurity concerns, coupled with the interoperability issues among different RTP network schemes such as The Clearing House (TCH) and Society for Worldwide Interbank Financial Telecommunications (SWIFT), is anticipated to hinder the growth of RTP market to a certain degree over the forecast period.
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