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The global instant payments market was valued at USD 60 billion in 2023 and grew at a CAGR of 16% from 2024 to 2033. The market is expected to reach USD 264.68 billion by 2033. The growth of digital finance will drive the growth of the global instant payments market.
Instant payments can be described as payments that enable the provision of payments and funds transfer through real-time or within a few seconds at any time of the week or even on a holiday. These payments may be made through an encrypted online payment platform that integrates technological developments, mobile applications, & the financial sector. Instant payment systems are intended to improve accessibility, efficiency and provide methods to transfer money quickly and securely without the time-consuming procedures that often come with banking transfer methods like wire transfers. In many countries, instant payment systems are either in the pipeline or have been already implemented and facilitated by both the banking sector and the fintech industry. These systems are typically established on a protected channel. These networks are intended to be homogeneous, to have linkage capability where different banks and financial institutions can get connected and facilitate cross border instant payments in certain instances. It has the ability to enhance cash flow which is a factor that is always perceived as a boon by businesses, and helps in avoiding delayed payments. Moreover, they increase the efficiency of the financial systems by decreasing the roles of the third parties and paper-based processes, as well as providing a green solution.
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The growth of digital finance and the fintech industry – today’s consumers are used to instant access to all sorts of services, and this idea includes even purchasing financial products. They want payments to be processed in real time; whether it is to transfer some cash to a friend, to pay for goods, services, or even to pay a bill. Thus, instant payments meet this need customer effectively by offering a trouble-free transaction process to improve customer satisfaction and demand for such services. The availability of the product via the e-commerce platform as well the increased adoption of digital transactions has also supported the demand for instant payments. Also, globalization and cross border payments are considered vital motivators to instant payment solutions. As organizations venture into foreign markets trade and foreign exchange requirements become more urgent through fast and economic means like instant payments. This makes cross-border payments easier, reduce time employed in currency exchange, and meet global market requirements and hence making instant payments crucial in the global sector.
Security concerns – Since most of the instant payments occur in real time, the corresponding benefits include convenience and speed, there are increased risks of fraud as well. instant payments take very little time and offer fraud detection systems very little time to act or for banks to counter check and cancel a transaction if they realize that fraud had occurred. Computer criminal acts like hacking, phishing and identity theft are comparatively more difficult for real time protection since the criminals can actually manipulate systems beforehand to circumvent preventive barriers. Furthermore, users, both citizens and companies engaging in cross and local transactions, may also refrain from using the instant payment system if they perceive the applications as insecure and susceptible to fraud. Fear of losing the funds, due to the unreliable operating of these systems, may lead to the slow rate of adoption because consumers don’t trust the systems. Therefore, security concerns will limit the market’s growth.
Improved digital and financial infrastructure – the developments in the electronic money system, mobile money applications, and technologies in nominal encryption have contributed to the development of the instant payments market. The use of smartphone and internet banking means that consumers and business have what it takes to effect payments immediately. In addition, new technologies have improved the stability of such systems as the cloud solution and blockchain enhance security and flexibility of instant payments. Both the traditional financial institutions and new emerging Fintech companies have benefited from these technological advancements making it easier to advance and expand instant payments globally. Also, and most importantly, there are regulatory support and infrastructure investments which have been crucial to the development of instant payments. Policies have been put in place by many countries to support the growth of instant payment networks and this will contribute to the global instant payments market’s growth.
The regions analysed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global instant payments market, with a 38% market revenue share in 2023.
Many nations like, China, India, Japan have strong instant payment system thanks to platforms like UPI in India and Alipay and WeChat Pay in China. In India, UPI has not only transformed the non-cash transactions through extending diversified digital payments across the network of smartphones, but it also turns out to be one of the most successful real-time payment systems on the global platform. Likewise, Alipay and WeChat Pay have become integral part of Chinese citizens lives for retail purchases, bill payment and other micro payments. They are not limited to individual consumers, but equally enable business and government to make instant payments. It is also evident that Asia-Pacific is a technology hub since it enjoys high Smartphone usage and has a technologically aware public which also significantly augments the regional market’s growth. Furthermore, government support and favourable legislation in most of those nations contributes towards fintech development, leading to the popularisation of instant payments.
Asia Pacific Region Instant Payments Market Share in 2023 - 38%
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The payment method segment is divided into mobile payments, bank transfers, and QR code payments. The mobile payments segment dominated the market, with a market share of around 37% in 2023. The growth of users making payments instantly through their hand-held devices has seen the instant payments market shift to the use of mobile wallets /mobile apps due to several lucrative factors. It is a flexible and convenient payment method. M-Commerce is creating apps such as PayPal, Apple Pay, Google Pay, and Samsung Pay have enhanced and made a significant change in handling of payments. In addition, mobile wallets have enhanced user security features such as biometric scan (finger print and facial) and tokenization. This increases security compared to the traditional systems of payment making the mobile payments safer and quicker. Services of mobile wallets are accepted by a vast number of merchants across the globe, which enables consumers use their mobile phones for almost every payment. Furthermore, mobile payment systems provide rewards, loyalty programs and interfaces with other services all of which adds value to the consumer.
The end user segment is divided into Consumer-to-Consumer (C2C), Consumer-to-Business (C2B), Business-to-Business (B2B), and Business-to-Consumer (B2C). The Consumer-to-Consumer (C2C) segment dominated the market, with a market share of around 33% in 2023. C2C instant payments have become the largest segment in the market mainly owing to the increasing use of P2P payment platforms such as Venmo, Zelle, Cash App, WeChat Pay and Alipay. These enable a person to transfer cash to friends, family, or anyone else within no time and with no help from third parties such as banks. C2C payments are very convenient and easy to use touching a button or two to complete the transfer of cash for any purpose. The fact that many of the C2C payment services do not or barely attract any charges also goes in their favour. C2C payments have become more affordable, and the ability to transfer money via different forms (by e-mail, phone number, or social network account) has made such payments preferred in personal transactions.
The deployment mode segment is divided into cloud-based and on-premise. The cloud-based segment dominated the market, with a market share of around 64% in 2023. Cloud-based deployment is widely used today because of its scalability, flexibility and cost-effectiveness. Solutions such as Square, Stripe, PayPal, etc., help payment processors and financial institutions offer real-time, secure payments services without significant upfront investments in any equipment of infrastructure. it does not entail any maintenance requirements as well. This model readily deployable, easily upgradable, and compatible with diverse systems. These systems can grow in size and functionality very quickly depending on the size and nature of the business. Moreover, cloud solutions provide improved protection and data handling functions to the business processes.
The vertical segment is divided into retail, banking and financial services, telecommunications, travel and hospitality and others. The banking and financial services segment dominated the market, with a market share of around 32% in 2023. The BFSI industry is by far the most prominent active market for instant payments because it entails several roles in enabling and processing payments. Banks and financial organisations are the pillars of real time payment solutions. Such systems allow consumer and businesses to execute transactions in real time and they form the backbone of the instant payments market. Instant payment systems are dominated by the BFSI sector chiefly because of the large client base it holds. Banks are not only involved in execution and reconciliation of payment transactions but also involved in offering regulation and safeguard mechanisms that make instant payments secure. Banks make the instant payment solutions key features of their mobile application and websites. As the digital banking services and payment infrastructure continues to grow, BFSI continues to lead in the development and use of instant payments globally.
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2023 | USD 60 Billion |
| Market size value in 2033 | USD 264.68 Billion |
| CAGR (2024 to 2033) | 16% |
| Historical data | 2020-2022 |
| Base Year | 2023 |
| Forecast | 2024-2033 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Payment Method, End User, Deployment Mode and Vertical |
As per The Brainy Insights, the size of the global instant payments market was valued at USD 60 billion in 2023 to USD 264.68 billion by 2033.
Global instant payments market is growing at a CAGR of 16% during the forecast period 2024-2033.
The market's growth will be influenced by the growth of digital finance and the fintech industry.
Security concerns could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global instant payments market based on below mentioned segments:
Global Instant Payments Market by Payment Method:
Global Instant Payments Market by End User:
Global Instant Payments Market by Deployment Mode:
Global Instant Payments Market by Vertical:
Global Instant Payments Market by Region:
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