Instant Payments Market Analysis, Key Trends, Strategies, and Future Implications, 2022
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The global instant payment transaction volume reached 70.4 billion in 2020. It is expected to grow at a CAGR of over 30% by 2024. Instant payment technology is gradually being adopted by most countries to improve payment infrastructure by ensuring transactions happen in seconds and without interruption.
India is leading the adoption of instant payment in the world and is already working on expanding its Unified Payments Interface (UPI) platform to other countries including Bhutan, Singapore, and the UAE. Countries leading the race to adopt instant payments are now focusing on developing regional instant payment networks that will enable international funds transfers in different currencies. Association of Southeast Asian Nations (ASEAN) countries are planning to link their instant payment platforms to create a regional network that should improve cross-border transactions in the region and reduce the cost of transactions. The increasing use of instant payment transactions is vulnerable to online payments fraud. To protect consumers and businesses, verification features such as Request to Pay (RtP) are being introduced to ensure that funds are being transferred to the correct accounts.
Overview of the instant payments market
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What are the market dynamics in the instant payments market?
Instant payments technology has the potential to improve the infrastructure of financial institutions with a solution that is meant for the digital world. Financial institutions can use instant payments to make the online payment experience more efficient. The technology improves privacy for consumers as they do not need to share bank details when requesting a payment, only an email or phone number. This reduces the risk of having personal data being stolen as mobile phones are omnipresent for both consumers and merchants. Introducing P2P platforms that use instant payments services will be an effective way to push the technology’s adoption in more countries.
Instant payment providers will need to focus on implementing cross-border transactions if they want to compete with card schemes. Countries that are working on implementing their own instant payments network should learn from those that are already established and successful by integrating cross-border linkage with other providers.
What is the regional and country-level outlook in the instant payments market?
The Asia Pacific region is leading in the adoption of instant payment transactions, followed by Europe, Latin America, North America, and the Middle East and Africa. Asia was the only region with a volume of transactions surpassing 56 billion in 2020. Both India and China are responsible for over 70% of global instant payments volume transactions.
In some regions, most instant payment systems are limited to domestic transactions. Some regions are actively working on developing schemes that provide cross-border transactions. TIPS is a payment service that provides consumers with instant payments transactions within the Eurozone. Asia Pacific, specifically countries in the ASEAN, are actively focusing on the regional development of instant payments network. The region is showing significant progress in terms of solving and addressing interoperability issues around instant payment providers. In 2021, many ASEAN countries passed an agreement to link their instant payments platforms with each other to enable cross-border transactions. In 2021, the Bank of Thailand and the Monetary Authority of Singapore (MAS) linked their respective instant payment systems, PromptPay and PayNow, enabling consumers to make transfers between both countries.
On a country-wise basis, the top 10 countries in the instant payments market are India, China, South Korea, Thailand, the UK, Nigeria, Japan, Brazil, the US, and Mexico.
Instant payments market, by region
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Who are the major players in the instant payments market?
The major players in the instant payments market are Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements, Monetary Authority of Singapore, European Central Bank, PayNow, InstaPay, Zelle, The Clearing House, PhonePe, Google, Paytm, Facebook, and Mastercard.
Instant payments market, by major players
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Market report scope
Market size (2020) | 70.4 billion |
Growth rate (from 2020 to 2024) | CAGR of >30% |
Forecast period | 2020-2024 |
Key regions | Asia Pacific, Europe, Latin America, North America, and Middle East and Africa |
Major players | Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements, Monetary Authority of Singapore, European Central Bank, PayNow, InstaPay, Zelle, The Clearing House, PhonePe, Google, Paytm, Facebook, and Mastercard |
This report provides:
- Impact of instant payment technology on the payments industry.
- Key countries and companies that are innovating in this sector.
- Risks associated with this emerging technology, as well as the solutions that aim to overcome these risks.
Reasons to Buy
- Discover the general trend of the instant payments sector across the world.
- Identify the market leaders and understand why countries and companies are motivated to adopt instant payments.
- Understand the different approaches taken towards adopting instant payments.
- Establish how blockchain challenges instant payments technology.
PayPal
Bank for International Settlements
Monetary Authority of Singapore
European Central Bank
PayNow
InstaPay
Zelle
The Clearing House
PhonePe
Paytm
Mastercard
ACI Worldwide
FedNow
Table of Contents
Frequently asked questions
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What was the instant payments market volume in 2020?
In 2020, the number of global instant payment transactions was 70 billion.
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What is the instant payments market growth rate?
The instant payments market is expected to grow at a CAGR of over 30% during 2020-2024.
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What is the regional outlook of the instant payments market?
The Asia Pacific region is leading in the adoption of instant payment transactions, followed by Europe, Latin America, North America, and the Middle East and Africa.
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Who are the major instant payments market players?
The major players in the instant payments market are Vocalink, ACI Worldwide, FedNow, Riksbank, PayPal, Bank for International Settlements, Monetary Authority of Singapore, European Central Bank, PayNow, InstaPay, Zelle, The Clearing House, PhonePe, Google, Paytm, Facebook, and Mastercard.
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