Rising demand for payment solutions and smartphone usage drive the future of real-time payments

By Puja Sharma

The Real Time Payments Market Size is estimated to grow at a CAGR of 31.35% between 2022 and 2027. The size of the market is forecast to increase by $55.54 million. The growth of the market depends on several factors, including increasing adoption of smartphones and access to high-speed internet, increasing demand for payment solutions from customers and merchants, and government initiatives to promote digital payments.

This report extensively coversmarket segmentation by component (solutions and services), deployment (on-premises and cloud), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

The increasing adoption of smartphones and access to high-speed internet is notably driving the market growth, although factors such as a rise in data breaches and security issues while conducting payments may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Real Time Payments Market Driver

The increasing adoption of smartphones and access to high-speed internet is notably driving the market growth. In recent years, smartphone usage has drastically increased in nations like Canada, China, and India. The widespread use of 3G and 4G connectivity has made it simple for customers to make payments on their mobile devices.  Additionally, the adoption of the 5G network is growing in North America, APAC, Europe, and the Middle East, which is boosting the expansion of the real-time payments sector.

In addition, the proliferation of distribution networks for smartphone companies has increased the accessibility of smartphone hardware for end users. For instance, Guangdong Oppo Mobile Telecommunications Corp., Ltd (OPPO), Xiaomi Corp (Xiaomi), Samsung Electronics Co Ltd (Samsung), and several others are significant mobile phone brands in rural India because they provide the rural population with access to payments through their mobile phones. These elements will fuel the market’s expansion during the prediction period.

Significant Real Time Payments Market Trends

Rapid digitalization in the payments sector is the primary trend in the market. In the post-pandemic society, digital currencies, biometrics, and real-time payments are becoming more popular and widely accepted by customers in an effort to reduce the demand for cash. Furthermore, technology is expanding to new use cases as its adoption continues to provide contactless payment choices for restaurants and retailers.

Dynamic real-time payment credit has also allowed retailers to scan customer codes, where the system detects fraud automatically. As a result, the worldwide real-time payments industry could see growth as a result of the increase in developments and efforts toward digitalized payments. Such factors are expected to fuel the growth of the market during the forecast period.

Major Real-Time Payments Market Challenge

The rise in data breaches and security issues while conducting payments is the major challenge impeding market growth. Innovative payment methods offer customers a number of advantages and conveniences. However, the surge in security issues and data breaches is impeding market expansion. Because they are worried that unauthorized mobile service providers will have access to their financial information, consumers are reluctant to use real-time payment networks to complete transactions.

Furthermore, it is anticipated that the risk of identity theft and data breaches would increase in the coming years. This is a result of using public Wi-Fi, weak passwords, and phishing attacks. Additionally, con artists use their own codes to replace real-time payments at merchant outlets, prompting customers to pay scammers instead of legitimate businesses. During the forecast period, these issues are anticipated to impede market growth.