Instant Payments Market Size was valued at USD 24.5 Billion in 2022. The Instant Payments Market industry is projected to grow from USD 28.6 Billion in 2023 to USD 99.11 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.80% during the forecast period (2023 - 2032). The digitization, government initiatives, and rapid adoption of real-time payment platforms in almost every industry such as retail, e-commerce, healthcare, education, and FMCG are expected to be a significant market driver for the Instant Payments Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Instant Payments Market Trends
Market CAGR for Instant Payments is being driven by the shift to cashless and contactless payments and increasing focus on using advanced technologies and new business models in the Fintech sector. The global Real-Time Payment (RTP) ecosystem is experiencing rapid expansion, as businesses and governments recognize the advantages of implementing faster and more efficient payment systems. Presently, real-time payments are supported by over 70 countries across six continents, with a transaction volume of USD 195 billion this year, reflecting a notable year-on-year growth of 63%, according to ACI Worldwide's March 2023 report. The COVID-19 pandemic has significantly contributed to the surge in digital payment usage worldwide. The Global Findex Database 2021 reveals that in low and middle-income economies (excluding China), over 40% of adults who made merchant in-store or online payments using cards, phones, or the internet did so for the first time since the onset of COVID-19.
The growing emphasis on leveraging advanced technologies and innovative business models in the Fintech sector, such as open API-enabled real-time payment systems through mobile applications, has been a key driver of market growth. According to a Finastra study from the previous year, Banking as a Service (BaaS) is projected to grow by 25% over the next three years, offering various embedded features to users within the system, including real-time payments and retail banking. Notably, 86% of market players are planning to adopt open APIs to facilitate accessible banking capabilities.
As a result, it is anticipated that throughout the projection period, demand for the Instant Payments Market will increase due to the shift to cashless and contactless payments and increasing focus on using advanced technologies and new business models in the Fintech sector. Thus, driving the Instant Payments Market revenue.
Instant Payments Market Segment Insights
Instant Payments Market Type Insights
The Instant Payments Market segmentation, based on Type includes Charged Instant Payments and Free Instant Payments. The charged instant payments segment dominated the market, accounting for 58% of market revenue (14.2 Billion). Instant payments allow businesses to transfer funds rapidly, typically within a span of five to 30 seconds, though occasionally it may take a few minutes based on system availability and the specific bank involved. In contrast, traditional online bank transfers typically require at least one business day for the funds to reach the recipient's bank account.
Figure 1: Instant Payments Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Instant Payments Market Application Insights
The Instant Payments Market segmentation, based on Application includes Business to Business (B2B), Business to Customer (B2C), Peer to Peer (P2P), Organization to Organization (O2O), and Customer to Customer (C2C). The peer to peer (P2P) segment dominated the market, accounting for 58% of market revenue. Numerous cross-border payment firms are actively working towards the creation of instantaneous peer-to-peer (P2P) payment solutions through collaborative ventures with banks and financial service entities. As an illustration, in February 2021, MoneyGram International, a cross-border payment service provider, and Visa, a payment technology company, unveiled the introduction of a real-time P2P payment solution in Vietnam utilizing Visa Direct. This innovative solution facilitates swift money transfers to Vietnam for customers residing in the U.S., U.K., and 18 other European countries.
Instant Payments Market Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Instant Payments market in North America can be attributed to several key factors. The rapid surge in real-time payment adoption in North America is linked to the widespread acceptance of mobile wallets like Apple Pay and Samsung Pay. Additionally, the increased prevalence of contactless payments during the pandemic has further accelerated the adoption of real-time payment methods such as Near Field Communication (NFC), QR codes, and similar technologies. Moreover, the convenience offered by real-time payments, including swift services, expedited check-out experiences at cafes, drive-throughs, and casual dining establishments, along with the integration of coupons, offers, and rewards into the payment process, stands as a significant driver for the growth of the North American real-time payments market.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: INSTANT PAYMENTS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Instant Payments Market accounts for the second-largest market share as The European Payments Council (EPC) has devised a pan-European instant payment system aimed at expediting the advancement of real-time payments across Europe. This system, known as the SEPA Instant Credit Transfer (SCT Inst), builds upon the existing SEPA credit transfer (SCT) scheme established by the EPC. Notably, SCT Inst facilitates euro credit transfers, ensuring that funds are made available in seconds within a region that is progressively expanding to cover 36 European countries. Numerous regional banks have adopted the SCT Inst, including Citi, which recently implemented Single Euro Payments Area (SEPA) Instant Payments across Europe. Further, the German Instant Payments Market held the largest market share, and the UK Instant Payments Market was the fastest-growing market in the European region
The Asia-Pacific Instant Payments Market is expected to grow at the fastest CAGR from 2023 to 2032. Governments worldwide that facilitate the implementation of real-time payment systems are playing a pivotal role in fostering prosperity and driving economic growth. By offering businesses and consumers faster, more cost-effective, and efficient payment methods, these initiatives contribute significantly to the financial landscape. According to the CEBR, the cumulative net benefits of real-time payments for businesses and consumers in China reached USD 15.397 billion, accounting for 5.7% of all transactions. Reflecting the current adoption levels of real-time payments in China, these instant payment systems facilitated a daily total transaction value of USD 170.800 billion in the previous year, primarily through the reduction of float time. This accelerated access to working capital, in turn, resulted in an estimated USD 12.411 billion in business output during the same period. The impact underscores the substantial economic advantages that real-time payment schemes can bring to both businesses and consumers. Moreover, China’s Instant Payments Market held the largest market share, and the Indian Instant Payments Market was the fastest-growing market in the Asia-Pacific region.
Instant Payments Market Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Instant Payments market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Instant Payments industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Instant Payments industry to benefit clients and increase the market sector. In recent years, the Instant Payments industry has offered some of the most significant advantages to the financial landscape, businesses, and consumers. Major players in the Instant Payments Market, including Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements (BIS), Monetary Authority of Singapore (MAS), European Central Bank (ECB), PayNow, InstaPay are attempting to increase market demand by investing in research and development operations.
ACI Worldwide Inc (ACI) specializes in delivering real-time electronic payment and banking solutions. The company is involved in the development, marketing, installation, and support of software products and services related to electronic payments. Its clientele includes banks, merchants, intermediaries, and billers globally, making use of third-party digital payment processors, payment associations, switch interchanges, and a diverse array of channels such as automated teller machines (ATMs), merchant point-of-sale (POS) terminals, bank branches, mobile phones, tablets, corporations, and internet commerce sites. ACI extends its services to various industries, including airlines, utilities, automotive, financial institutions, mortgage services, and payment services providers. Additionally, the company offers fraud detection and trade finance services. With a business presence spanning the Americas, the Middle East, Asia-Pacific, Europe, and Africa, ACI is headquartered in Coral Gables, Florida, USA. In June 2022, ACI Worldwide introduced its innovative mobile engagement platform, ACI Smart Engage. This platform empowers merchants worldwide to present their range of services and goods directly to consumers' smartphones, leveraging voice, location, and image recognition technology. This advancement aims to elevate the shopping experience on mobile devices to a new level.
PayPal functions as a technology platform and digital payments company, offering technological solutions and payment services to facilitate mobile, in-app, and online transactions for both merchants and consumers. Alongside its primary payment services, the company provides additional value-added offerings such as working capital and short-term business financing, gateway services, and invoicing. PayPal serves as a digital alternative to traditional paper processing methods like money orders and checks and also provides peer-to-peer (P2P) payment solutions. The company operates under various brands, including Braintree, Venmo, Xoom, PayPal Credit, Zettle, Chargehound, Happy Returns, Honey, Hyperwallet, Paidy, and Simility. Geographically, PayPal's operations are prominent in North America, Europe, and the Asia-Pacific region, with its headquarters located in San Jose, California, USA.
Key companies in the Instant Payments Market include
Instant Payments Industry Developments
April 2023: In April 2023, Visa announced a strategic collaboration with PayPal and Venmo to initiate the pilot of Visa+, an innovative service designed to facilitate swift and secure money transfers between various person-to-person (P2P) digital payment applications. Later in the same year, users of Venmo and PayPal in the United States will have the capability to seamlessly transfer funds between the two platforms.
April 2023: In April 2023, CRED unveiled its UPI-based P2P payments, presenting a new payment option for its users. This feature allows CRED members to utilize the 'pay anyone' functionality through their contact list, phone numbers, or UPI IDs
Instant Payments Market Segmentation
Instant Payments Market Type Outlook
Instant Payments Market Application Outlook
Instant Payments Market Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 24.5 Billion |
| Market Size 2023 | USD 28.6 Billion |
| Market Size 2032 | USD 99.11 Billion |
| Compound Annual Growth Rate (CAGR) | 16.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements (BIS), Monetary Authority of Singapore (MAS), European Central Bank (ECB), PayNow, InstaPay |
| Key Market Opportunities | ·      Integration of AI and Machine learning along with the introduction of platforms that work well in low network bandwidth |
| Key Market Dynamics | ·      The growing need for quick and smooth transfer of money from corporate |
Frequently Asked Questions (FAQ) :
The Instant Payments Market size was valued at USD 24.5 Billion in 2022.
The Instant Payments Market is projected to grow at a CAGR of 16.80% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements (BIS), Monetary Authority of Singapore (MAS), European Central Bank (ECB), PayNow, InstaPay
The Charged Instant Payments segment dominated the market in 2022.
The Peer-to-peer (P2P) segment had the largest share in the global market.
Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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