Rising Adoption of Contactless Payment is Catalyzing Real-Time Payment Market
According to our latest market study on " Real-Time Payment Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component, Payment Mode, Deployment, Enterprise Size, and Industry," the real-time payment market is expected to grow from US$ 12.85 billion in 2021 to US$ 86.89 billion by 2028 with an estimated CAGR of 32.0% from 2022 to 2028.
Source: The Insight Partners Analysis
The difference between physical and digital commerce is dissolving, and channels are converging increasingly. The in-store purchase experience has shifted significantly closer to the online one due to the strong emphasis on contactless payments during the COVID-19 pandemic. Also, before the pandemic, contactless payments were already well-established in a few regions. Touchless payments and/or biometric identification are prevalent in the online purchase experience. The contactless card is the most prevalent kind of touch-free payment. In the real-time payment market ecosystem, mobile payments, on the other hand, are gaining popularity due to easy use and the growing popularity of original equipment manufacturer (OEM) Pay solutions as a retail payment method. In a few countries, retailers and governments proactively request the customers to increase contactless payments and encourage retailers to make this possible, contributing to the real-time payment market growth. Furthermore, many banks have increased their contactless payment limits to reduce the need for a touchpad or cash at the point of sale, owing to the growth of the real-time payment market.
The rising demand of the diverse demands of customers, retailers, banks, telecom providers, and gadget suppliers is the primary reason for the growth of real-time payment market. It enables them to go to various locations, such as concerts, trade exhibits, and food trucks, where they may receive money from clients. This is accomplished by properly implementing real-time payment in the industry. Retailers may use real-time payment and associated software systems to improve and enhance consumer interaction, resulting in higher conversion rates and sales. Real-time payment deployments allow brick-and-mortar retailers to use pricing, product information, and inventory data, enabling for omnichannel engagement, which, in turn, is likely to gain momentum for the real-time payment market during the forecast period.
The rise in eCommerce sales, internet usage, and technological advancements is driving demand for real-time payment market. Furthermore, many companies operating in the real-time payment market are constantly adopting mergers & acquisitions strategies to develop their real-time payment portfolio. For instance, in September 2020, as part of its Visa Issuing program, Novatti launched the Digital Payments Accelerator to support start-ups and innovators. In addition, in November 2019, PayPal Holdings, Inc. acquired Honey Science Corporation for around US$ 4 billion in cash. Due to this transaction, PayPal's customers will have a better purchasing experience, while businesses will benefit from increased sales and client engagement. Such organic and inorganic growth strategies adopted by the players operating in the real-time payment market, will contribute to the growth of real-time payment market during the forecast period.
Payment gateways enable both brick-and-mortar and online merchants to provide secure credit card and digital wallet payment options to their consumers. Payment gateways are critical in helping businesses grow as technology offers new payment methods and marketplaces. Payment gateway systems are continually improving to keep up with the changing customer preferences and technical capabilities. Traditionally, credit cards with magnetic strips were accepted at the terminals and mandated customers to sign paper signatures. In terms of contactless purchases, customers make payments with their phones rather than conventional credit cards. For instance, Millenials and Generation Z had a combined purchasing power of US$350 billion in 2018. Only two years later, Gen Z accounted for 40% of worldwide customers, putting pressure on retailers to adapt to this thriving group, which resulted in the growth of the real-time payment market.
ACI Worldwide; Apple; FIS; Fiserv; Mastercard; PayPal; Temenos; Visa; Wirecard; and Worldline are among the key real-time payment market players profiled during the study. Several other major companies were studied and analyzed during this research study to get a holistic view of the real-time payment market and its ecosystem.
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