COVID-19 Crisis Highlights Need for Real-Time and New Digital Payments Services Around the World, New ACI Worldwide Research Reveals
The new report outlines the five strongest indicators of a market’s real-time payments success. A national system or individual country does not need all of these indicators in place for initial adoption, but a combination of two or more is enough to drive the initial growth explosion.
Centrally Driven Payments Modernization Initiatives—The backing of a motivated market force, whether governmental or collaborative stakeholders, is key for countrywide change—as countries like
India, Nigeriaand Malaysiahave proven.
- Seamless and Integrated Payments Experience with Rich Overlay Services—End users want convenience, and unsurprisingly, real-time growth is strong where access to easy-to-use payment types exists for both business and consumer users.
- Connected Ecosystem of Players Enriching User Experience—When a market has broad ecosystem acceptance, combined with the convenience of rich overlay services and strong functionality, real-time payments can grow explosively.
- Digital Payments Maturity Level and Ingrained Payment Habits—In regions with historic reliance on paper-based payments such as cash and checks, real time provides an easy digital alternative—and when this shift is backed by a government initiative, adoption can be significant.
- Openness to Alternative Payment Methods—Alternative payment methods like mobile wallets continue to surge. Adoption is greater when real-time overlay services are offered, particularly the integration of real-time payment capabilities within mobile wallets.
“Recent events have given digital payments mainstream attention, and faster access to funds for individuals and small business has never been more critical,” said
Additional Key Findings
Indiais poised to lead the world in real-time payments volume over the next five years, with transaction volumes set to grow from 15.3 billion in 2019 to a staggering 52.8 billion in 2024.
Additional key countries and regions to watch for real-time payments growth include the
U.S.(42.1% CAGR growth), the Nordic countries of the P27 initiative (20.9% CAGR growth), ASEAN(39.0% CAGR growth) and Europe; these countries and regions already have one or more of the above indicators in place.
Among the countries relatively new to real-time payments,
Malaysia, Finlandand Belgiumare predicted to have the most exponential growth in the next five years, with an expected CAGR of 176.5 percent, 90 percent and 67.9 percent, respectively.
“Our research reveals that despite vastly different cultural, economic and technological factors, there are a number of traits that determine if real-time transaction volumes will see a rapid upward trajectory, and within what timeframe,” commented
*Using a global sample of 30 markets, ACI and Global Data have presented the developmental state of the market based on the various dynamics at play in each country. We’ve identified the total transactional size of real-time payments transactions per country in 2019, and provided our forecast for 2024, as well as the future five-year CAGR. We’ve detailed share of volume—both transactional and dollar—as well as other statistics contributing to real-time adoption. Each country profile includes details about the scheme(s) in place and a timeline for real-time payments development in market. Finally, we’ve provided analysis and insight into what the presented factors mean for each of the countries profiled.