Global instant payments continue to grow as new use cases drive transaction volumes to record highs – Investing.com's ACI Global Report



  • Global instant payment transaction volume will reach 266.2 billion in 2023, an annual increase of 42.2%
  • 49% of global instant transactions occur in India, followed by Brazil (14%), Thailand (8%), China (7%) and South Korea (3%)
  • The report highlights lessons learned from five of the world's most successful instant payments markets: India, Brazil, Indonesia, Malaysia and the Netherlands

OMAHA, Neb.–(Business Wire)–According to data, the growth of global instant payments has reached a sustainable level. The volume of instant payment transactions will reach 266.2 billion in 2023, an “annual increase of 42.2%” in 2024. Prime Time Report, by ACI Global (NASDAQ:NASDAQ: ) is the global leader in mission-critical instant payments software, in partnership with GlobalData, a leading data and analytics company.

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While previous reports have highlighted the economic benefits and global consumer acceptance of instant payments, this year's report, now in its fifth edition, takes an in-depth look at some of the world's leading instant payments markets, highlighting the factors influencing instant payments. Enabling these countries to build successful end-to-end instant payments ecosystems. The report also shows that many new market entrants around the world are catching up quickly, with lawmakers and central banks around the world driving adoption, determined to reap the economic benefits of instant payments and drive financial inclusion for their citizens.

Overview of key findings

  • It is expected that by 2028, global instant transaction volume will reach 575.1 billion, with a compound annual growth rate (CAGR) of 16.7% from 2023 to 2028. By 2028, instant payments are expected to account for 27.1% of all electronic payments globally.
  • India continues to dominate the global instant payments market, with transaction volume expected to reach 129.3 billion by 2023, “more than the other top ten instant payment markets in the world combined.” 84% of all electronic payments made in India are now instant.
  • In 2023, Brazil's instant payment transaction volume will reach 37.4 billion, an annual increase of 77.9%. Brazil is the undisputed leader in instant payments in Latin America, accounting for 75% of all transactions in the region. Other Latin American countries are advancing initiatives to modernize instant payments, hoping to replicate Brazil's success. Peru and Colombia are expected to have the highest CAGR in the region from 2023 to 2028, at 51.2% and 42.6% respectively.
  • Asia Pacific (APAC) is the largest instant payments market, with transaction volume expected to reach 185.8 billion by 2023, accounting for 24.0% of all electronic payments in the region. In terms of transaction volume, the Asia-Pacific region occupies four of the top five instant payment markets. It is expected that by 2028, instant transaction volume will exceed 351.5 billion, with a compound annual growth rate of 13.6% from 2023 to 2028.
  • The Middle East is the fastest growing instant payments market in the world. Oman, Kuwait and Qatar have all launched plans in 2023, joining more established regional players such as Saudi Arabia, Bahrain and the United Arab Emirates. The region's compound annual growth rate from 2023 to 2028 is 28.8%, and transaction volume is expected to increase from 855 million to 3 billion by 2028.
  • European Union (EU) instant payments regulations adopted in February 2024 are expected to boost instant payment volumes in the single euro payments area, which includes 27 EU member states. By 2028, instant payments are expected to account for 13% of all electronic payments in Europe, up from 8% in 2023.
  • North America is a major growth market worth watching, “mainly due to the launch of FedNow services in the United States in 2023”, with a compound annual growth rate of 27.1% expected from 2023 to 2028.
  • Nigeria is the undisputed leader in instant payments in another major growth market in Africa. The country will record 7.9 billion transactions in 2023; instant payments will account for an impressive 82.1% share of all electronic payments in 2023.
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Market Deep Dive: Lessons Learned from the Most Successful Instant Payments Markets

This year's report provides the first in-depth look at five of the world's most successful instant payments markets – India, Brazil, Indonesia, Malaysia and the Netherlands – analyzing the drivers and use cases for development in these countries. A thriving instant payments ecosystem can transform businesses and improve consumer life.

  • The power of collaboration: Whether it is government mandate or industry consensus, real-time payment systems thrive through active collaboration. Financial institutions, payment service providers, central banks and government agencies, merchants and third-party stakeholders must work together to build and operate a successful instant payments ecosystem.
  • Open and inclusive payment ecosystem: The most successful instant payments market is fostering a fintech-rich environment. Research shows that fintech companies and smaller banks play an increasingly important role in the instant payments ecosystem in major global markets. Large banks will need to reassess strategies and forge new partnerships with fintech companies to remain competitive in the world's fast-growing instant payments market.
  • Provide strong incentives for merchants: Merchant adoption and adoption are critical to the growth of instant payments. For example, the Indian government has eliminated merchant discounts and issued QR codes for accepting UPI to all merchants, actively encouraging merchants of all sizes to accept UPI payments.
  • New, user-friendly use cases constantly emerging: Instant payments thrive in countries where innovative use cases are widely adopted by consumers or businesses. Whether it’s a utility bill or tax bill, a traffic ticket or road toll, a subscription payment or the weekly grocery bill, consumers in the most successful markets can now pay instantly.
  • Transnational instant payment links are the next big frontier: Efforts to expand instant to cross-border payments are finally paying off, with Asian countries leading the way. Payments using India's popular UPI scheme can now be made in Malaysia, Indonesia, UAE and France, and users of DuitNow Malaysia can now make instant QR code payments from Indonesia, Singapore, Thailand and China.
  • instant payment fraud: Generative AI is changing the nature and scale of fraud attacks, but the industry is rising to the challenge. Consumer rights initiatives, education programs and government interventions “combined with new anti-fraud technologies and methods based on artificial intelligence” are starting to have an impact.
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Craig Ramsey, global head of instant payments at ACI Worldwide, said this year’s report highlights some of the key success factors that have enabled some countries to make progress in modernizing instant payments and deliver significant benefits to consumers and businesses. Modern instant payments require collaboration, and they encourage a new generation of market entrants to either compete with banks or collaborate “and often both.” The use cases for the world’s most successful instant payments schemes, particularly in India and Brazil, have also proven popular beyond imagination.

Instant payments, especially cross-border payments, are the future. Debbie Guerra, chief product officer at ACI Worldwide, said they remove payment friction, provide greater liquidity to the financial system, and ultimately drive economic growth and financial inclusion. Banks should consider whether they are truly maximizing the immediate trajectory of the market, and whether limiting their commitments to a minimum also means limiting their potential share of future payments.

Note to editors: All key facts and figures can be found at a glance on our website 2024 real-time prime time infographic.

About ACI Global
ACI Worldwide is the global leader in mission-critical instant payments software. Our proven, secure and scalable software solutions enable leading enterprises, fintechs and financial disruptors to process and manage digital payments, support omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with local operations to drive the immediate digital transformation of payments and commerce.

© Copyright ACI Worldwide, Inc. 2024
ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc. or one of its subsidiaries in the United States and/or other countries. Trademarks of other parties referenced are the property of their respective owners.

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Nick Karoglou | Head of Communications and Corporate Affairs | nick.karoglou@aciworldwide.com
Katrin Boettger | Director of Communications and Corporate Affairs | Katrin.boettger@aciworldwide.com

Source: ACI Global





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