Real-Time Payments Market Trends

Growth Drivers

• Escalating Digitalization – Rapidly growing digitalization, and increasing urbanization are significant growth drivers for the real-time payments market. Furthermore, the regulatory body of money laundering is implementing different strategies for digital payment in order to reduce the black money transactions.
• Increasing Focus of Technological Advancement – The growth of the market can also be driven by increasing intent of technological innovation and development of new payment models for the fintech sector such as API-oriented real-time payment systems used in mobile applications, adoption of 5G infrastructure, blockchain, AI, and others. According to the study, BaaS is expected to increase by 25 % over the next three years and provides a wide range of features for users embedded in the system that include Real-Time Payment, Retail Banking services, etc. Open APIs will be adopted by 86% of market players enabling them to have access to available banking capabilities.
• Increasing Consumer Preference – Owing to consumer preference for online payment during the recent pandemic time, the demand for real-time payment methods started growing. Now, local vendors and small businesses have also started relying on this payment option in order to enhance their cash flow management.

Challenges

• Security Concern Associated – Real-time payment consists of the transfer of large sums of money in less time. This makes them a target for scammers. It is significant for real-time payment systems to be highly secure in order to prevent users from scammers.
• Might be High in Cost
• Prevalence of Legacy Infrastructure