ACI Worldwide Report: Global Real-Time Payments Growth

 The global landscape of real-time payments has reached sustainable levels, as evidenced by the 266.2 billion real-time transactions recorded in 2023, marking a year-over-year (YoY) growth of 42.2%. This data, revealed in the 2024 Prime Time for Real-Time report, co-published by ACI Worldwide (NASDAQ: ACIW) and GlobalData, underscores the burgeoning importance of real-time payment systems worldwide.

While previous reports emphasized the economic advantages and consumer adoption of real-time payments, this year's edition delves deeper into the world's leading markets for real-time payments, shedding light on the factors contributing to their success. Moreover, it highlights the rapid progress made by newer entrants into the market, driven by legislative and regulatory support, aimed at harnessing the economic benefits of real-time payments and promoting financial inclusivity.

**Key Findings at a Glance**

- Globally, it is forecasted that there will be 575.1 billion real-time transactions by 2028, reflecting a compound annual growth rate (CAGR) of 16.7% from 2023 to 2028. By 2028, real-time payments are projected to represent 27.1% of all electronic payments globally.

- India remains at the forefront of the global real-time payments market, recording 129.3 billion transactions in 2023, surpassing the combined total of the world's top 10 real-time payments markets. Real-time payments now constitute 84% of all electronic payments in India.

- Brazil experienced exceptional year-over-year growth of 77.9% in 2023, with 37.4 billion real-time transactions. As the leading real-time payments market in Latin America, Brazil accounts for 75% of all transactions in the region. Other Latin American countries are following suit, with Peru and Colombia expected to exhibit the highest compound annual growth rates (CAGRs) in the region.

- The Asia Pacific (APAC) region dominates the global real-time payments market, recording 185.8 billion transactions in 2023, constituting 24.0% of all electronic payments in the region. With four of the top five real-time payments markets by volume, the APAC region is poised to witness over 351.5 billion real-time transactions by 2028, with a CAGR of 13.6% from 2023 to 2028.

- The Middle East emerges as the fastest-growing real-time payments market globally, with countries like Oman, Kuwait, and Qatar launching schemes in 2023, joining established players like Saudi Arabia, Bahrain, and the UAE. The region is expected to witness a CAGR of 28.8% from 2023 to 2028.

- The European Union's Instant Payments Regulation, enacted in February 2024, is anticipated to drive instant payments volume across the Single Euro Payments Area. By 2028, instant payments are forecasted to account for 13% of all electronic payments in Europe.

- North America, particularly with the launch of the FedNow service in the U.S. in 2023, is poised for significant growth, with a projected CAGR of 27.1% from 2023 to 2028.

- Nigeria leads the real-time payments market in Africa, recording 7.9 billion transactions in 2023, with real-time payments constituting 82.1% of all electronic payments.

**Market Deep-Dives: Lessons from the Most Successful Real-Time Payments Markets**

For the first time, this year's report takes an in-depth look at five of the most successful real-time payments markets globally—India, Brazil, Indonesia, Malaysia, and the Netherlands. It analyzes the driving factors and use cases that have propelled these countries to develop thriving real-time payment ecosystems, transforming businesses and enhancing consumers' lives.

- **The Power of Collaboration**: Successful real-time payments systems thrive on active collaboration among financial institutions, payment service providers, central banks, government institutions, merchants, and third-party stakeholders.

- **Open and Inclusive Payments Ecosystems**: Fostering fintech-rich environments is crucial for the success of real-time payments markets, with fintechs and smaller banks playing an increasingly significant role.

- **Strong Incentives for Merchants**: Merchant adoption and uptake are vital for real-time payments growth, with governments incentivizing merchants to accept real-time payments.

- **Constant Flow of New, User-Friendly Use Cases**: Innovative use cases drive mass adoption of real-time payments by consumers and businesses, spanning utility bills, transport tickets, subscription payments, and more.

- **Cross-Border Real-Time Payments Links**: Efforts to extend real-time payments to cross-border transactions are gaining momentum, particularly in Asia, leading to enhanced payment efficiency and accessibility.

- **Real-time Payments Fraud**: The evolution of generative AI is changing the landscape of fraud attacks, prompting the industry to adopt new anti-fraud measures and technologies.

"This year's report underscores the critical success factors driving real-time payments modernization globally and the immense benefits it brings to consumers and businesses," said Craig Ramsey, global head of real-time payments, ACI Worldwide. "Collaboration and innovation are key to the success of real-time payments, and countries like India and Brazil exemplify the transformative potential of real-time payment systems."

Debbie Guerra, chief product officer, ACI Worldwide, added, "Real-time payments represent the future of payments, driving economic growth, financial inclusion, and liquidity in the financial system. Banks need to capitalize on the potential of real-time payments to remain competitive in the evolving payments landscape."